Court Ruling Backs Durst in Terrorism Insurance Dispute

NEW YORK CITY-In a victory for The Durst Organization, a ruling in New York State Supreme Court broadens the scope of the preliminary injunction against Cigna and LaSalle National Bank Association from holding the owners of 4 Times Square in default or extracting any fees or penalties.

“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.