ABM Industries Inc. announced recently that the United States Court of Appeals for the Second Circuit on June 27, 2005 denied the petition by Zurich American Insurance Co. (Zurich), filed Feb. 24, 2005, to have its appeal of the Feb. 9, 2005 summary judgment ruling heard by the Second Circuit Court of Appeals sitting en banc.
“We are pleased with the Court’s decision,” said Linda Auwers, ABM senior vice president & general counsel. “We continue to look forward to a fair and timely resolution of our claims with Zurich.”
On Feb. 9, 2005, the United States Court of Appeals for the Second Circuit granted summary judgment in favor of ABM on the company’s insurance claims for business interruption losses resulting from the World Trade Center terrorist attack.
The Court also ruled that ABM is entitled to recovery for the extra expenses the Company incurred after Sept. 11, 2001, which include millions of dollars related to increased unemployment claims and costs associated with the redeployment of World Trade Center personnel at other facilities. The Court rejected the arguments of Zurich to limit the company’s business interruption coverage and returned the case to the Southern District of New York for determination of appropriate additional compensation under the policy.
Under the policy, coverage for business interruption and other related losses is capped at $127.4 million. ABM reportedly believes its losses exceed $100.0 million, of which $10.0 million has been paid under the contingent business interruption sub-limit, and $5.3 million has been paid for property and other losses.
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