Subject:  Developer sues Cantor for back rent |
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crush orange
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Date Posted: 22:39:58 05/27/03 Tue
Developer sues Cantor for back rent
By Christopher Grimes and Adrian Michaels in New York
Published: May 28 2003 0:36 | Last Updated: May 28 2003 0:36
Larry Silverstein, (pictured) the real estate developer who holds the lease on the World Trade Center, has filed suit against Cantor Fitzgerald for rent owed for August 1-September 10, 2001.
Cantor, which lost 658 employees in the September 11 terrorist attacks, owes over $1m in back rent, according to Mr Silverstein's lawsuit.
Mr Silverstein continues to pay rent to the Port Authority of New York and New Jersey to maintain the World Trade Center lease. All the other major tenants have paid rent for the period prior to the terrorist attacks on the Twin Towers, Mr Silverstein claims.
"We have commitments from all the other major tenants; this is the only tenant who has failed to address this matter," a spokesman for Mr Silverstein said. "Unfortunately we had to file this lawsuit."
Mr Silverstein's financial situation has been the subject of legal battles and speculation for months. His company took control of the WTC for $3.2bn shortly before the attacks and has since been battling to double the losses of over 20 insurers to more than $7bn. Mr Silverstein argues that because two aircraft hit separate buildings, he can make two claims and recover twice his $3.6bn coverage.
In September a judge in New York granted judgment in favour of the arguments of three of the insurers that the terrorist attacks constituted one "occurrence".
Mr Silverstein plans to appeal that decision July 22 in a US court.
Meanwhile there is a separate insurance dispute over the rebuilding by Mr Silverstein of another part of the WTC complex, World Trade Seven.
Cantor Fitzgerald was criticised for being slow to pay benefits to relatives of employees killed in the tragedy. Only days after the attacks, the firm stopped sending paychecks to missing employees. There were also questions about payment of year-end bonuses.
But Howard Lutnick, chairman, later offered more generous financial plans for the families, including a plan to donate 25 per cent of the firm's profits to a fund for families.
As the leaseholder of the World Trade Center site, Mr Silverstein is also a major figure in the redevelopment of Lower Manhattan.
He has differed with city and state officials on the direction of the redevelopment, including New York City mayor Michael Bloomberg.
Mr Bloomberg yesterday unveiled a $25m plan to build new parks and open spaces near the site of World Trade Center in Lower Manhattan. Work is to begin on 13 sites, with 8 parks to be completed within the next year. A design competition for a memorial is under way, with selection expected later in the year.
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