Sept. 11 bodily injury lawsuits allowed

NEW YORK, March 28 (UPI) -- New York City and its contractors aren't immune from bodily injury lawsuits arising from the Sept. 11, 2001, terrorist attacks, a federal court ruled.

In a separate case, the city did win a battle with insurers over paying to defend against such suits, Business Insurance reported. The city has spent $100 million defending itself.

The federal appeals court ruled Wednesday lawsuits filed by construction workers, emergency personnel and others involved in the response and cleanup at the towers over exposure to toxins aren't pre-empted by the Air Transportation Safety and System Stabilization Act or other law providing immunity to public entities.

In the related action, a federal district court ordered the city's primary insurers to defend New York and its contractors in the personal injury cases the appellate court allowed to proceed.

Meanwhile, the World Trade Center's lease-holder has sued airline security companies for more than $12 million, television news channel NY1 reported. Larry Silverstein sought the damages four years ago but only recently has the full amount become known.

Airline officials say that amount, when combined with other claims, is more than the federal cap on the airlines' insurance for the attacks on the twin towers.