Will Lucky Larry's Payouts Ever End?

gretavo's picture

Amazing, Incredible, Shameless, pick your word...

Silverstein puts brake on small-biz WTC payouts

By BRUCE GOLDING

Last Updated: 7:40 AM, July 24, 2010

Posted: 1:57 AM, July 24, 2010

Eight uninsured small businesses wiped out in the 9/11 terror attacks must wait to pocket payouts from their property-damage suits, due to legal maneuvering by developer Larry Silverstein.

The plaintiffs -- including the former Windows on the World restaurant and the World Trade Farmers Market -- settled their claims as part of a $1.2 billion deal approved earlier this month.

They're slated to get less than 1 percent of the total amount, with the rest going to dozens of insurance firms that also sued airlines and several security firms over alleged negligence that let al Qaeda hijackers destroy the Twin Towers.

But Silverstein, who wants $12 billion over the loss of his lease, yesterday filed an appeal that's expected to put the settlements on hold for at least a year.

"He's unfairly punishing eight small businesses with no benefit to himself in doing it, unless there's some perception on his part that if we make enough noise they're going to cave in to him," said Tony Labozzetta, whose Wall Street Realty Capital company was housed in the WTC.

"He has a right to appeal, but it's grotesque that he's using us as his ammunition."

Reps for Silverstein didn't respond to requests for comment.

Larry Silverstein must justify blocking 9/11 settlements: judge

By BRUCE GOLDING

Larry Silverstein must justify blocking 9/11 settlements: judge

By BRUCE GOLDING

Last Updated: 6:04 PM, July 29, 2010

Posted: 6:03 PM, July 29, 2010

Developer Larry Silverstein must explain why he won’t let eight small uninsured businesses pocket settlements over their losses from the Sept. 11 terror attacks, a judge ordered today.

The move came after The Post reported last week that legal maneuvering by the former World Trade Center lease-holder could keep the payouts in limbo for at least a year.

Manhattan federal Judge Alvin Hellerstein gave Silverstein until August 6 to submit his reasons for refusing to "grant leave" so the businesses — including the former Windows on the World restaurant — can collect their money pending Silverstein’s appeal of a decision authorizing their settlements.

"Absent sufficient reasons, disbursements may be authorized," Hellerstein wrote.

The small businesses are set to receive less than 1 percent of a $1.2 billion deal that settled claims by dozens of plaintiffs who sued airlines and security firms over alleged negligence that let al Qaeda hijackers destroy the Twin Towers.

Silverstein, who’s seeking $12 billion for his losses, didn’t join in the settlement, which he said was "shrouded in secrecy" and involved "collusive" deals by struck by insurers with interests on both sides of the table.

A spokesman for the developer said: ""Like all the business owners impacted by Sept. 11, we want a speedy resolution of this longstanding litigation."

"With respect to some other plaintiffs’ request for early payouts, we are carefully following the specific procedures established by the court in its previous rulings."