Jury Selection Begins for Silverstein vs. Insurers Trial
CPN Online
February 4, 2004

Quoted: Michael D. Brown

By Therese Fitzgerald

Jury selection began today In the case of Larry Silverstein vs. Insurers of the World Trade Center. And, with the case in Federal court, U.S. district court Judge Michael S. Mukasey gets to choose the 12 jurors for the trial that begins Monday.

"He plans to have the jury seated today," said a Silverstein spokesman, who noted each side gets three pro forma objections. After that, the lawyers will have to formally object and the judge will have to agree.

Michael Brown, a senior partner & insurance litigator with the firm of Ohrenstein & Brown LLP, said Silverstein's ideal juror will be someone who had a personal loss or whose business was displaced by the events of 9-11. And he will want someone who is self made like he and, perhaps, someone who has had 1 bad experience with insurance companies.

"He wants someone that understands this was a huge catastrophe and a huge catastrophe for him," said Brown.

And, while Silverstein may want to avoid lawyers, the insurers will be looking for a "smarter" juror that can analyze the facts of the transaction and follow the judge's directions. "After all, at the end of the day, this is about a contract," said Brown.

The first phase of the trial, opening statements which will be given an Monday, will determine which binder was used: the Willprop form, created by Silverstein Insurance broker Wills Group Holdings Ltd. or Travelers'. And the third phase will decide if the attacks on the World Trade Center will be one insurable occurrence or two, and phase III will resolve how much Silverstein is owed.

According to Silverstein, the Travelers binder, which does not define occurrence, was used in his agreement with SwissRe, Travelers and other insurers, The insurers that will go to court Monday argue the Willprop form, which has a definition of occurrence and would deem the World Trade Center disaster one occurrence, was used. Originally, the difference between the one occurrence and two was $3.5 billion vs. $7.3 billion, but some proceeds have already been paid.

In total, World Trade Center Properties L.L.C. used 24 insurance companies to insure the Twin Towers complex. 13 of them will be represented at the trial. According to the Silverstein spokesman, two of the insurers settled with Silverstein, three received summary judgment in their favor, and six are not claiming to be bound by Willprop.