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An Analysis of the World Trade Center 'Two Occurrences' Decision

By Kirk A. Pasich
January 24, 2005

On Dec. 6, 2004, a New York federal jury determined that the 9/11 attacks on the World Trade Center involved two “occurrences” under policies issued to leaseholder Larry Silverstein. As a result, Silverstein could get up to $1.1 billion more than if the attacks had constituted a single occurrence.

The litigation originally involved 22 insurers. However, the obligations of 13 insurers were determined to be governed by a “WilProp” form that had specific language defining an “occurrence.” The WilProp form defined “occurrence” to mean:

All losses or damages that are attributable directly or indirectly to one cause or to one series of similar causes. All such losses will be added together and the total amount of such losses will be treated as one occurrence irrespective of the period of time or area over which such losses occur. World Trade Center Properties, LLC v. Hartford Fire Ins. Co., 345 F.3d 154, 160 (2d Cir. 2003).

The Second Circuit concluded that “no finder of fact could reasonably fail to find that the intentional crashes into the WTC of two hijacked airplanes sixteen minutes apart as a result of a single, coordinated plan of attack was, at least, a 'series of similar causes.' Accordingly, we agree … that under the WilProp definition, the events of September 11th, constitute a single occurrence as a matter of law.” Id.

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