"It's an unfortunate situation," Durst co-president Douglas Durst tells GlobeSt.com. "Our fight with Cigna is basically due to Cigna's stupidity."

The court's action is the latest in litigation that centers on whether The Durst Organization should be required to purchase terrorism insurance to supplement the insurance already in place on its 1.6-million-sf tower, more commonly known as the Conde Nast Building. Cigna is the special servicer, and LaSalle the major lender, for the mortgage on the building. The Durst Organization maintains that its existing mortgage insurance on the property, located on the east side of Seventh Avenue, between 42nd and 43rd Streets, fulfills all of its legal obligations to the mortgage holders.

State Supreme Court Justice Rosalyn Richter rejected the lenders' claims that circumstances have changed since the Appellate Division granted a temporary injunction. "Even if this court were to accept defendants' argument that the case now presents some new issues, defendants still have failed to show that they cannot be adequately compensated by monetary damages," Richter ruled.