SunsetWorks
July 2nd, 2003, 06:12 PM
Feds Sue Insurers Over 9/11 Damage
By Patricia Hurtado
Staff Writer
Newsday
June 27, 2003, 9:02 PM EDT
The federal government has filed suit against an
insurance company for failing to reimburse it for millions of dollars in losses and damages incurred at a lower Manhattan post office on Sept. 11, 2001.
The suit, filed on behalf of the Postal Service by the office of Manhattan U.S. Attorney James Comey, is the first to describe the extent of the damage at the massive 15-story Art Deco building at 90 Church St. The post office, adjacent to the World Trade Center, is on the National Registry of Historic Places.
The 1935 structure, which served as the central mail sorting and distribution center for lower Manhattan as well as a general post office for the financial district, also housed the Legal Aid Society and the city Housing Authority.
The post office has been shuttered since the terrorist attacks.
According to a suit filed by Assistant U.S. Attorney Robert Sadowski, the building suffered extensive damage after the Twin Towers and later that day when 7 World Trade Center collapsed.
Burning debris struck the post office, igniting fires and releasing smoke and fumes. The building was further damaged by flooding from open sprinklers and the Fire Department's prolonged use of a standpipe in the building.
Subsequently, the suit charges, mold also grew throughout the building as a result of the flooding.
Sadowski charges the U.S. Postal Service signed a one-year insurance policy with Factory Mutual Insurance Co. of Johnston, R.I., effective Nov. 17, 2000 through Nov. 17, 2001 that covered property damage.
The government argues that Factory Mutual has rejected proof of loss and denied coverage "without justification."
The carrier's failure to pay for repairs and decontamination will "render the building a health danger to the surrounding area," the suit says.
A related suit filed Friday against Mutual Factory on behalf of 90 Church LP, the net leaseholder, charges that: "The restoration and reoccupancy of this historic property is critical to the revitalization of downtown Manhattan." That suit says 90 Church has suffered more than $38 million in losses and $17 million in damages.
Calls Friday to Factory Mutual were not returned.
By Patricia Hurtado
Staff Writer
Newsday
June 27, 2003, 9:02 PM EDT
The federal government has filed suit against an
insurance company for failing to reimburse it for millions of dollars in losses and damages incurred at a lower Manhattan post office on Sept. 11, 2001.
The suit, filed on behalf of the Postal Service by the office of Manhattan U.S. Attorney James Comey, is the first to describe the extent of the damage at the massive 15-story Art Deco building at 90 Church St. The post office, adjacent to the World Trade Center, is on the National Registry of Historic Places.
The 1935 structure, which served as the central mail sorting and distribution center for lower Manhattan as well as a general post office for the financial district, also housed the Legal Aid Society and the city Housing Authority.
The post office has been shuttered since the terrorist attacks.
According to a suit filed by Assistant U.S. Attorney Robert Sadowski, the building suffered extensive damage after the Twin Towers and later that day when 7 World Trade Center collapsed.
Burning debris struck the post office, igniting fires and releasing smoke and fumes. The building was further damaged by flooding from open sprinklers and the Fire Department's prolonged use of a standpipe in the building.
Subsequently, the suit charges, mold also grew throughout the building as a result of the flooding.
Sadowski charges the U.S. Postal Service signed a one-year insurance policy with Factory Mutual Insurance Co. of Johnston, R.I., effective Nov. 17, 2000 through Nov. 17, 2001 that covered property damage.
The government argues that Factory Mutual has rejected proof of loss and denied coverage "without justification."
The carrier's failure to pay for repairs and decontamination will "render the building a health danger to the surrounding area," the suit says.
A related suit filed Friday against Mutual Factory on behalf of 90 Church LP, the net leaseholder, charges that: "The restoration and reoccupancy of this historic property is critical to the revitalization of downtown Manhattan." That suit says 90 Church has suffered more than $38 million in losses and $17 million in damages.
Calls Friday to Factory Mutual were not returned.