In re September 11th Litigation
United States District Court for the Southern District of New York
590 F. Supp. 2d 535 (2008)
World Trade Center Properties LLC (WTCP) (plaintiff) won a competitive bidding process 55 days before September 11, acquiring 99-year net leases on four World Trade Center towers for consideration valued at $2.805 billion, obligating WTCP to rebuild and repair the towers if damaged; the September 11 attacks destroyed all four towers, and Congress separately capped aviation liability at each entity's insurance coverage while funding a victim compensation fund. WTCP sued various airlines (defendants) for negligence, seeking the towers' $16.2 billion alleged replacement value rather than their market value, and the defendants moved for summary judgment arguing damages couldn't exceed market value.
Whether a plaintiff whose property has been completely destroyed may recover its full replacement cost, or is instead limited to the lesser of replacement cost or the diminution in the property's market value.