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Silverstein tells of insurance snag

World Trade Centre leaseholder Larry Silverstein finally got his day in the witness box late last week, but it was just for 30 minutes. He told a US district court in New York that he didn’t realise there would be a problem with insurance on the twin towers until a couple of days after September 11 2001.

Mr Silverstein added little to the evidence already given at the six week-long hearing, beyond telling how he thought he had sufficient cover in place to pay for the rebuilding of the two towers. The final points of his insurance were still being negotiated when the attack happened. He claims the destruction of the two towers was two distinct events.

But the consortium of 13 insurers led by Swiss Re has obtained lower court decisions that the attacks should be considered as one event, effectively halving the amount they will have to pay.

Judge Michael Mukasey restricted much of what Mr Silverstein could say in the witness box – and then barred him from the court for the rest of the hearing of the case for speaking to the media in defiance of the judge’s instructions.