Durst Organization cannot be charged additional penalties by Cigna or LaSalle in terrorism insurance case.In a victory for The Durst Organization, a ruling in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of State Supreme Court broadens the scope of the preliminary injunction A temporary order made by a court at the request of one party that prevents the other party from pursuing a particular course of conduct until the conclusion of a trial on the merits. A preliminary injunction is regarded as extraordinary relief. against Cigna and LaSalle National Bank Association from holding the owners of Four Times Square in default or extracting any fees or penalties, attorneys for Durst said today. The court's action is the latest in litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. that centers on whether The Durst Organization should be required to purchase terrorism insurance Terrorism insurance is insurance purchased by property owners to cover their potential losses and liabilities that might occur due to terrorist activities. It is considered to be a difficult product for insurance companies, as the odds of terrorist attacks are very to supplement the insurance already in place on its 1.6-million-SF tower, also known as the Conde Nast Building. Cigna is the special servicer, and LaSalle the major lender, for the mortgage on the building. Justice Rosalyn Richter, in State Supreme Court in Manhattan, rejected the lenders' claims that circumstances have changed since the Appellate Division In several jurisdictions, the Appellate Division is the name of a court, or division of a court, that hears appeals from lower courts.
Warren A. Estis, a partner in Rosenberg & Estis, representing The Durst Organization; says the ruling is consistent with the Appellate Division's earlier determination but also "protects the Dursts from attempts to default them or extract any fees or penalties based on claims of new circumstances." The Durst Organization maintains that its existing mortgage insurance on Four Times Square (located on the east side of Seventh Avenue, between 42nd and 43rd Streets) fulfills all of its legal obligations to the mortgage holders. A final decision in the case is expected in 12 to 18 months. Expressing his frustration over the ongoing litigation, co-president Douglas Durst says his firm "will never do business with Cigna again." |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion