Citigroup dropped from lawsuit that charged that the diesel fuel it kept at WTC 7 was a main culprit in the destruction of the building on 9/11.
"Citigroup Inc. cannot be held responsible for the large stocks of diesel fuel it kept at 7 World Trade Center — fuel that an insurance company claimed was a main culprit in the destruction of the building on Sept. 11, 2001 — a federal judge ruled Friday.
Southern District Judge Alvin K. Hellerstein found that covenants in Citigroup’s lease with Larry Silverstein, and an insurance company’s agreement with Silverstein, bar the company from proceeding as Silverstein’s subrogee against Citigroup Inc. and Citigroup Global Market Holdings Inc.
In Industrial Risk Insurers v. The Port Authority of New York and New Jersey, 02 Civ. 7170, Industrial Risk, or IRI, claimed that several parties were responsible for the destruction of 7 World Trade Center, which sat adjacent to the twin towers that were destroyed by terrorists.
Fires from the twin towers spread to 7 World Trade Center when chunks of the collapsing buildings fell on it. Citigroup had a long-term lease for portions of its floors one through five and floors 28 through 47 for trading operations for Salomon Smith Barney.
Seeking damages of $75 million, IRI claimed that the system, including the pipes connecting two 6,000 gallon tanks of diesel fuel kept on site by Citigroup in the event of a power outage, were negligently installed and maintained, and that the ignited fuel intensified the fires and ensured the building would fall." – Law.com (01/31/05)