WTC Business Interruption Claim Suit Settles After Insured's Damages Expert's Testimony Ruled Inadmissible

New York, June 16, 2005

Lava Trading has settled a $59 million business interruption claim lawsuit against Hartford Insurance last month after its damages expert's testimony was ruled by the Judge to be inadmissible under a Daubert motion.

Hartford disputed part of Lava's claimed losses from the destruction of its World Trade Center office due to a coverage dispute. Lava sued Hartford in the U.S. District Court for the Southern District of New York.

Hartford's attorneys, Robinson & Cole LLP partner Stephen E. Goldman and counsel Rebecca Levy-Sachs, successfully challenged the reports of Lava's damages expert, Dr. Eric Clemons, as inadequate under Federal rules of evidence. The Court precluded Dr. Clemons from testifying at trial.

Hartford's forensic accountant, Campos & Stratis partner Chris Campos, provided an affidavit supporting the motion. Another forensic accounting firm, Matson, Driscoll & Damico, also performed an accounting analysis of the Lava claim.

Separately, the plaintiff was sanctioned for withholding documents.

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