American, United Must Face 9/11 Negligence Suit

Law360, New York (September 4, 2012, 5:58 PM EDT) -- A New York federal judge on Tuesday said United Airlines Inc. and American Airlines Inc. could not avoid a property company’s tort recovery lawsuit related to the Sept. 11 attacks just because the company has already received $4 billion in insurance payouts.

U.S. District Judge Alvin K. Hellerstein denied the airlines’ motion for a “collateral setoff” that would credit insurance recoveries received by World Trade Center Properties LLC against potential tort recoveries, saying that the move was premature and that the overlap between insurance recovery and...
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