SR INTERN. BUSINESS INS. v. WORLD TRADE CENTER

Docket Nos. 04-4500-cv(L), 05-6343-cv(CON), 05-3167-cv(L), 05-3168-cv(CON), 05-3169-cv(CON), 05-3170-cv(CON), 05-3204-cv(CON), 05-3325-cv(CON), 05-3940-cv(CON), 05-3942-cv(CON).

467 F.3d 107 (2006)

SR INTERNATIONAL BUSINESS INSURANCE CO., LTD., Plaintiff-Counter-Defendant-Appellee, Copenhagen Reinsurance Co. Ltd., Employers Insurance Company of Wausau, Federal Insurance Co., Great Lakes Reinsurance PLC, Houston Casualty Co., Lexington Insurance Company, Certain Underwriters at Lloyd's, London Insurers, QBE International Insurance Limited, and Württembergische Versicherung AG, Counter-Defendant-Appellees, v. WORLD TRADE CENTER PROPERTIES, LLC, Silverstein Properties, Inc., Silverstein WTC Management Co., LLC, 1 World Trade Center LLC, 2 World Trade Center LLC, 4 World Trade Center LLC, 5 World Trade Center LLC, The Port Authority NY/ NJ, Westfield WTC, LLC, Westfield Corporation, Inc., and Westfield America Inc., Defendants-Counter-Claimants-Appellants, UBS Warburg Real Estate Investments, Inc., Wells Fargo Bank Minnesota, N.A., As Trustee for the registered holders of GMAC Commercial Mortgage Securities, Inc., Mortgage-Backed Pass-Through Certificates, Series 2001—WTC, and GMAC Commercial Mortgage Corporation, Defendants-Counter-Claimants, Gulf Insurance Company, Hartford Fire Insurance Company, St. Paul Fire and Marine Insurance Company, Swiss Reinsurance Co. UK Ltd., Tokio Marine and Fire Insurance Co., Allianz Insurance Co., Royal Indemnity Co., TIG Insurance Co., Zurich American Insurance Co., Industrial Risk Insurers, The Travelers Indemnity Company, and Twin City Fire Insurance Co., Counter-Defendants. SR International Business Insurance Co., Ltd., Plaintiff-Counter-Defendant, Allianz Insurance Co., Gulf Insurance Company, Industrial Risk Insurers, Royal Indemnity Co., TIG Insurance Co., The Travelers Indemnity Company, Twin City Fire Insurance Co., and Zurich American Insurance Co., Counter-Defendants-Appellants, v. World Trade Center Properties, LLC, Silverstein Properties, Inc., Silverstein WTC Management Co., LLC, 1 World Trade Center LLC, 2 World Trade Center LLC, 4 World Trade Center LLC, 5 World Trade Center LLC, The Port Authority NY/NJ, Westfield WTC LLC, Westfield Corporation, Inc., and Westfield America, Inc., Defendants-Counter-Claimants-Appellees, UBS Warburg Real Estate Investments, Inc., Wells Fargo Bank Minnesota, N.A., As Trustee for the registered holders of GMAC Commercial Mortgage Securities, Inc., Mortgage-Backed Pass-Through Certificates, Series 2001—WTC, and GMAC Commercial Mortgage Corporation, Defendants-Counter-Claimants, Copenhagen Reinsurance Co., Ltd., Employers Insurance Company of Wausau, Federal Insurance Co., Great Lakes Reinsurance PLC, Hartford Fire Insurance Company, Houston Casualty Co., Lexington Insurance Company, Certain Underwriters at Lloyd's, London, QBE International Insurance Limited, Swiss Reinsurance Co. UK Ltd., Tokio Marine and Fire Insurance Co., and Württembergische Versicherung AG, Counter-Defendants.

United States Court of Appeals, Second Circuit.

Decided: October 18, 2006.


Attorney(s) appearing for the Case

Herbert M. Wachtell and Eric M. Roth, Wachtell, Lipton, Rosen & Katz (Bernard W. Nussbaum, Marc Wolinsky, Ben M. Germana, and Gordon M. Mead, Jr., Wachtell, Lipton, Rosen & Katz; John H. Gross, Proskauer Rose LLP, on the brief), New York, NY, for World Trade Center Properties LLC, Silverstein Properties, Inc., Silverstein WTC Management Co. LLC, 1 World Trade Center LLC, 2 World Trade Center LLC, 4 World Trade Center LLC, and 5 World Trade Center LLC.

Skadden, Arps, Slate, Meagher & Flom LLP (Timothy G. Reynolds, New York, NY) and The Port Authority of New York and New Jersey (Megan Lee and Timothy G. Stickelman, New York, NY), for The Port Authority of New York and New Jersey.

Latham & Watkins LLP (Blair Connelly, New York, NY; Peter K. Rosen, Los Angeles, CA; Maureen E. Mahoney, Washington, D.C.; Kristine L. Wilkes, Laura A. Godfrey, Robert S. Huie, Robert G. Knaier, and Colleen C. Smith, San Diego, CA, on the brief), for Westfield WTC LLC, Westfield Corporation, Inc., and Westfield America, Inc.

Barry R. Ostrager (Mary Kay Vyskocil, on the brief), Simpson Thacher & Bartlett LLP, New York, NY, for SR International Business Insurance Co., Ltd.

Mendes & Mount, LLP (Leo W. Fraser, III, and Christine M. McNicholas, New York, NY, on the brief), for Copenhagen Reinsurance Co. Ltd.

Christopher S. Finazzo (Robert F. Cossolini and Michael Mernin, on the brief), Budd Larner PC, Short Hills, NJ, for Employers Insurance Company of Wausau.

Thomas McKay, III (Stephen A. Cozen, Jacob C. Cohn, and Michael A. Hamilton, on the brief), Cozen O'Connor, P.C., Philadelphia, PA, for Federal Insurance Co.

Stuart Cotton, Mound, Cotton, Wollan & Greengrass, New York, NY, for Lexington Insurance Company.

David Boies, Boies, Schiller & Flexner LLP (Edward Normand, Boies, Schiller & Flexner LLP, Armonk, NY; Kenneth W. Erickson, Robert A. Skinner, and Bryan R. Diederich, Ropes & Gray LLP, Boston, MA, on the brief), Armonk, NY, for Certain Underwriters at Lloyd's, London.

Baker & McKenzie, LLP (Grant Hanessian, New York, NY, on the brief), for QBE International Insurance Ltd.

Louis R. Cohen, Wilmer Cutler Pickering Hale & Dorr LLP (Seth P. Waxman, Edward C. DuMont, and Rachel Z. Stutz, Wilmer Cutler Pickering Hale & Dorr LLP, Washington, D.C.; Catherine M. Colinvaux, Zelle, Hofmann, Voelbel, Mason & Gette LLP, Waltham, MA; John B. Massopust, Richard L. Voelbel, Patricia St. Peter, Adam P. Gislason, and Matthew J. Gollinger, Zelle, Hofmann, Voelbel, Mason & Gette LLP, Minneapolis, MN, on the brief), Washington, D.C., for Allianz Insurance Company.

Harvey Kurzweil, Dewey Ballantine LLP (John E. Schreiber, Michael Thelen, and Kathleen M. Thompson, Dewey Ballantine LLP, New York, NY; Robert J. Morrow, Hunton & Williams LLP, New York NY, on the brief), New York, NY, for Gulf Insurance Company and Travelers Indemnity Company.

Philip A. Sechler (John G. Kester and Carolyn H. Williams, Zoe S. Poulson, Janet C. Fisher, and Christina P. Giffin, on the brief), Williams & Connolly LLP, Washington, D.C., for Industrial Risk Insurers.

Michael H. Barr (Sandra D. Hauser, Edward J. Reich, and Michael R. Galligan, on the brief), Sonnenschein Nath & Rosenthal LLP, New York, NY, for Royal Indemnity Company.

Mound Cotton Wollan & Greengrass (Costantino P. Suriano, on the brief), New York, NY, for TIG Insurance Company.

Hogan & Hartson L.L.P. (William J. Bowman and Joshua D. Weinberg, on the brief), Washington, D.C., for Twin City Fire Insurance Co.

O'Melveny & Myers LLP and Wiley Rein & Fielding LLP (Paul R. Koepff, O'Melveny & Myers LLP, New York, NY; Ira H. Raphaelson, O'Melveny & Myers LLP, Washington, D.C.; M. Evan Corcoran, Wiley Rein & Fielding LLP, Washington, D.C., on the brief), for Zurich American Insurance Co.

Before WALKER, CABRANES and POOLER, Circuit Judges.


JOHN M. WALKER, JR., Circuit Judge.

These are appeals from judgments following two separate phases of a jury trial to adjudicate whether the coordinated terrorist attacks of September 11, 2001— whereby two jetliners separately crashed into the twin towers of the World Trade Center ("WTC"), destroying both buildings—constituted one or two "occurrences" under the terms of multiple insurance contracts. The parties are entities with varying property interests...

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