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Con Ed insurers' Sept. 11 suit against NYC dismissed

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NEW YORK—A federal judge has dismissed a lawsuit against the City of New York and numerous claims against various other defendants accused by insurers of Consolidated Edison Co. of New York Inc. of contributing to the Sept. 11, 2001, destruction of 7 World Trade Center.

The 47-story office building, adjacent to the WTC's twin towers, caught fire during the terrorist attack on the morning of Sept. 11 and collapsed several hours later. A Con Ed electrical substation was destroyed in the collapse, and the utility's insurers—including AEGIS Insurance Services Inc.—sued a number of parties they contended were responsible for the loss.

The insurers alleged, for example, that the Port Authority of New York and New Jersey, the property's owner, and 7 World Trade Co., the building's owner and manager, were negligent in allowing the City of New York and Solomon Brothers Inc. to maintain large diesel fuel tanks and emergency generators in the building. Ignition of the diesel fuel contributed to 7 WTC's collapse, the insurers argue. The suit also charged several contractors, engineers and architects with negligence in the design and construction of the building and facilities leased to New York and Solomon.

In a ruling Thursday, however, U.S. District Court Judge Alvin Hellerstein threw out several of the claims while leaving others intact.

Judge Hellerstein dismissed all charges against the City of New York. The judge also dismissed several counts against the Port Authority, 7 World Trade, Citigroup—which later acquired Solomon—and various design and construction professionals.

The ruling leaves intact negligence counts against the Port Authority, 7 World Trade and Citigroup, along with product liability claims against several design and construction defendants.

Judge Hellerstein scheduled a Feb. 1 status conference for the ongoing case, which also includes airline and airport security company defendants.