Port Authority Sued Over WTC Tanks

by Colleen Debaise
Dow Jones News Service
September 10, 2002

 


NEW YORK –– A utility and five insurance companies filed a $314 million lawsuit blaming the Sept. 11 collapse of a 47-story World Trade Center complex building on the Port Authority of New York and New Jersey's negligence in monitoring diesel fuel tanks in the building.

The lawsuit, filed Tuesday in U.S. District Court in Manhattan, said the Port Authority, owner of the trade center complex, was responsible for the collapse because it poorly controlled the design, use and occupancy of 7 World Trade Center.

In particular, the lawsuit claimed, the Port Authority failed to properly monitor multiple diesel fuel tanks installed in 1999 to provide power to the city's emergency command bunker on the building's 23rd floor. The Port Authority denied the lawsuit's accusations.

The building also housed a secret CIA station, believed to be the most important CIA domestic station outside Washington. It was near the two 110-story trade center towers that collapsed after they were struck by planes hijacked by terrorists.

It was believed to have sustained little structural damage and collapsed due to fire alone, the first fireproofed steel structure to do so.

Consolidated Edison Co. of New York Inc. and five of its insurance companies – including Aegis Insurance Services Inc. and Lloyds – accused the Port Authority of failing to apply, interpret and enforce safe engineering practices and standards commonly used for high-rise office buildings throughout the state.

They said the Port Authority also did not properly apply, interpret and enforce New York City and state fire safety rules and regulations.

In the building collapse, Con Ed lost a substation and equipment that provided power to the trade center complex and the surrounding area in downtown Manhattan.

ConEd's substation was built in 1970 under a lease agreement with the Port Authority. In 1983, 7 World Trade Center was built on top of the substation.

In a release, Port Authority general counsel Jeffrey Green said all the Port Authority's buildings "meet or exceed code."

He said the design of the diesel fuel tanks in the building had been approved by the city and the fire department.

He said the Port Authority continues to have a "very cooperative relationship" with Con Ed and the building's tenant, Larry Silverstein, as the substation is rebuilt.

 

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