Arthur Andersen, LLP v. Federal Insurance Company, et al.
A-2155-08T1 09-30-10
Although Arthur Andersen, LLP neither owned nor leased any
space at the World Trade Center or the Pentagon on September 11,
2001, it filed a claim with its insurers for $204 million in
business losses, contending that such losses were caused as a
result of the property damage to the WTC and the Pentagon and
covered under the Contingent Business Interruption (CBI) clause
and the Interdependency clause of its policy. The loss claimed
was a generalized revenue shortfall that represented the
difference between expected revenue trends and actual revenue
earned in the three and one-half months that followed the
terrorist attacks. Andersen appealed from orders granting
summary judgment to the insurer. We affirm.
Because Andersen failed to show that its claimed business
loss was caused by damage to property that prevented a client
from accepting its services, its loss was not covered under the
CBI provision of its policy. We also reject Andersen's argument
that it had an "insurable interest" in the World Trade Center
and therefore conclude that its claim was not covered under the
Interdependency provision of the policy.
