WORLD TRADE CENTER PROPERTIES, L.L.C., SILVERSTEIN PROPERTIES, INC., SILVERSTEIN WTC MANAGEMENT CO., L.L.C., 1 WORLD TRADE CENTER, L.L.C., 2 WORLD TRADE CENTER, L.L.C., 4 WORLD TRADE CENTER, L.L.C., 5 WORLD TRADE CENTER, L.L.C., WESTFIELD WTC, L.L.C., WESTFIELD CORPORATION, INC., WESTFIELD AMERICA, INC., and THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY, Defendants-Counter-Claimants-Counter-Defendants-Appellants-Cross-Appellees, UBS WARBURG REAL ESTATE INVESTMENTS INC., WELLS FARGO BANK MINNESOTA, N.A., As Trustee for the registered holders of GMAC Commercial Mortgage Securities, Inc. Mortgage-Backed Pass-Through Certificates, Series 2001-WTC, and GMAC COMMERCIAL MORTGAGE CORPORATION, Defendants-Counter-Claimants-Counter-Defendants-Cross-Appellees, v. HARTFORD FIRE INSURANCE COMPANY and ROYAL INDEMNITY COMPANY, Counter-Defendants-Appellees, ST. PAUL FIRE & MARINE INSURANCE CO., Counter-Defendant-Appellee-Cross-Appellant, SR INTERNATIONAL BUSINESS INSURANCE CO., LTD., Plaintiff-Counter-Defendant-Intervenor, ALLIANZ INSURANCE COMPANY, COPENHAGEN REINSURANCE CO., EMPLOYERS INSURANCE OF WAUSAU, FEDERAL INSURANCE COMPANY, GREAT LAKES REINSURANCE (UK ) PLC., GULF INSURANCE COMPANY, HOUSTON CASUALTY CO., INDUSTRIAL RISK INSURERS, LEXINGTON INSURANCE CO., CERTAIN UNDERWRITERS AT LLOYD'S OF LONDON, QBE INTERNATIONAL INSURANCE LIMITED, SWISS REINSURANCE CO. UK LTD., TIG INSURANCE CO., TOKIO MARINE AND FIRE INSURANCE CO., TRAVELERS INDEMNITY COMPANY, TWIN CITY FIRE INSURANCE CO., WURTTEMBERGISCHE VERSICHERUNG AG and ZURICH AMERICAN INSURANCE CO., Counter-Defendants. SR INTERNATIONAL BUSINESS INSURANCE CO., LTD., Plaintiff-Counter-Defendant, WORLD TRADE CENTER PROPERTIES, L.L.C., SILVERSTEIN PROPERTIES, INC., SILVERSTEIN WTC MANAGEMENT CO. L.L.C., 1 WORLD TRADE CENTER, L.L.C., 2 WORLD TRADE CENTER, L.L.C., 4 WORLD TRADE CENTER, L.L.C., 5 WORLD TRADE CENTER, L.L.C., WESTFIELD WTC, L.L.C., WESTFIELD CORPORATION, INC., WESTFIELD AMERICA, INC., and THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY, Defendants-Counter-Claimants-Appellants, UBS WARBURG REAL ESTATE INVESTMENTS INC., WELLS FARGO BANK MINNESOTA, N.A., As Trustee for the registered holders of GMAC Commercial Mortgage Securities, Inc. Mortgage-Backed Pass-Through Certificates, Series 2001-WTC, and GMAC COMMERCIAL MORTGAGE CORPORATION, Defendants-Counter-Claimants, v. THE TRAVELERS INDEMNITY COMPANY, Counter-Defendant-Appellee, ALLIANZ INSURANCE COMPANY, COPENHAGEN REINSURANCE CO., EMPLOYERS INSURANCE OF WAUSAU, FEDERAL INSURANCE COMPANY, GREAT LAKES REINSURANCE (UK) PLC, GULF INSURANCE COMPANY, HARTFORD FIRE INSURANCE COMPANY, HOUSTON CASUALTY CO., INDUSTRIAL RISK INSURERS, LEXINGTON INSURANCE CO., CERTAIN UNDERWRITERS AT LLOYD'S OF LONDON, QBE INTERNATIONAL 2 INSURANCE LIMITED, ROYAL INDEMNITY COMPANY, ST. PAUL FIRE & MARINE INSURANCE COMPANY, SWISS REINSURANCE CO. UK LTD., TIG INSURANCE CO., TOKIO MARINE AND FIRE INSURANCE CO., TWIN CITY FIRE INSURANCE CO., WURTTEMBERGISCHE VERSICHERUNG AG, and ZURICH AMERICAN INSURANCE CO., Counter-Defendants., 345 F.3d 154
Summary
Plaintiff insureds, who were leasing space in the WTC, engaged an insurance broker to set up a multi-layered insurance program providing $ 3.5 billion insurance on a "per occurrence" basis. In soliciting insurers, the broker circulated information regarding the proposed placement that included a "broker" form. The case addressed whether the events of September 11, 2001 constituted one or two "occurrences" for the purpose of determining policy limits. In addition, as of September 11, 2001, only one of the insurers had issued a final policy, necessitating an individualized inquiry to determine the terms of each insurance binder. The court held that the binders issued by three of the insurers were issued on the basis of negotiations involving the broker form, a copy of which had been provided to each insurer by the broker. The parties intended and understood the binders to incorporate the terms of the form except as expressly modified. Under the definition in the form, the events of ...