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US court allows WTC to sue airlines over September 11

The owner of the World Trade Centre’s twin towers will continue legal action against airlines over the September 11 terrorist attacks, after a New York judge refused to dismiss the case.

Justice Alvin Hellerstein of the New York District Court says the overlap between insurance recoveries obtained by World Trade Centre Properties (WTCP) and the company’s potential to sue airlines for damages “presents issues of fact requiring trial”.

WTCP has sued United Airlines, American Airlines and others alleging that without their negligence the terrorists could not have hijacked the aircraft and flown them into the twin towers. The airlines deny negligence.

WTCP has recovered $US4.091 billion ($3.94 billion) from insurance. The airlines say these recoveries more than compensate it.

Judge Hellerstein has previously ruled that WTCP may recover up to $US2.805 billion ($2.7 billion) from the airlines.

After the towers collapsed in 2001, WTCP filed for losses of about $US8 billion ($7.7 billion) but settled with its insurers. It alleges it suffered damages of $US8.4 billion ($8.09 billion), the estimated cost of replacing the towers, and seeks recovery from the airlines.