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M&C sues US insurance broker over 9/11 losses

27 October 2005
M&C sues US insurance broker over 9/11 losses

Millennium & Copthorne Hotels (M&C) is suing its former US insurance adviser and broker for damages in excess of $45m (£25m) in relation to the 2001 terrorist attacks on the World Trade Center.

The company's latest legal action is against Willis of New York for property damage and loss of business at the Millenium Hilton hotel in New York, which was caught up in the attacks. M&C is also claiming for interruption of business at its 14 other US hotels.

"We were advised by our legal counsel to take this action to bring the issue to a close," said Robin Lee, director of business systems and development at M&C. "It is a complex case and it will be a long process."

Earlier this year, M&C also sued its insurance company, Travelers Property Casualty Company of America. In March, the two companies dropped legal actions after Travelers agreed to pay the hotel operator $24.99m (£14m) in full and final settlement of its claims, which related to the terms and duration of the policy.

As a result, Travelers has paid a total $75m (£42m) for property damage and business interruption at the Millenium Hilton while M&C's other insurer on the building stumped up a further $10m (£5.6m).

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