§ 408. LIMITATION ON LIABILITY.

1,127 words·~5 min read·/usc/title-49/section-408

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

In General.— Liability limited to insurance coverage .— Notwithstanding any other provision of law, liability for all claims, whether for compensatory or punitive damages or for contribution or indemnity, arising from the terrorist-related aircraft crashes of September 11, 2001 , against an air carrier, aircraft manufacturer, airport sponsor, or person with a property interest in the World Trade Center, on September 11, 2001 , whether fee simple, leasehold or easement, direct or indirect, or their directors, officers, employees, or agents, shall not be in an amount greater than the limits of liability insurance coverage maintained by that air carrier, aircraft manufacturer, airport sponsor, or person.

Willful defaults on rebuilding obligation .— Paragraph

(1)does not apply to any such person with a property interest in the World Trade Center if the Attorney General determines, after notice and an opportunity for a hearing on the record, that the person has defaulted willfully on a contractual obligation to rebuild, or assist in the rebuilding of, the World Trade Center. Limitations on liability for New York City .— Liability for all claims, whether for compensatory or punitive damages or for contribution or indemnity arising from the terrorist-related aircraft crashes of September 11, 2001 , against the City of New York shall not exceed the greater of the city’s insurance coverage or $350,000,000. If a claimant who is eligible to seek compensation under section 405 of this Act, submits a claim under section 405, the claimant waives the right to file a civil action (or to be a party to an action) in any Federal or State court for damages sustained as a result of the terrorist-related aircraft crashes of September 11, 2001 , including any such action against the City of New York. The preceding sentence does not apply to a civil action to recover collateral source obligations. Liability for certain claims .— Notwithstanding any other provision of law, liability for all claims and actions (including claims or actions that have been previously resolved, that are currently pending, and that may be filed) for compensatory damages, contribution or indemnity, or any other form or type of relief, arising from or related to debris removal, against the City of New York, any entity (including the Port Authority of New York and New Jersey) with a property interest in the World Trade Center on September 11, 2001 (whether fee simple, leasehold or easement, or direct or indirect) and any contractors and subcontractors, shall not be in an amount that exceeds the sum of the following, as may be applicable: The amount of funds of the WTC Captive Insurance Company, including the cumulative interest. The amount of all available insurance identified in schedule 2 of the WTC Captive Insurance Company insurance policy. As it relates to the limitation of liability of the City of New York, the amount that is the greater of the City of New York’s insurance coverage or $350,000,000. In determining the amount of the City’s insurance coverage for purposes of the previous sentence, any amount described in subparagraphs

(A)and

(B)shall not be included. As it relates to the limitation of liability of any entity, including the Port Authority of New York and New Jersey, with a property interest in the World Trade Center on September 11, 2001 (whether fee simple, leasehold or easement, or direct or indirect), the amount of all available liability insurance coverage maintained by any such entity. As it relates to the limitation of liability of any individual contractor or subcontractor, the amount of all available liability insurance coverage maintained by such contractor or subcontractor on September 11, 2001 . Priority of claims payments .— Payments to plaintiffs who obtain a settlement or judgment with respect to a claim or action to which paragraph

(4)applies, shall be paid solely from the following funds in the following order, as may be applicable: The funds described in subparagraph

(A)or

(B)of paragraph (4). If there are no funds available as described in subparagraph

(A)or

(B)of paragraph (4), the funds described in subparagraph

(C)of such paragraph. If there are no funds available as described in subparagraph (A), (B), or

(C)of paragraph (4), the funds described in subparagraph

(D)of such paragraph. If there are no funds available as described in subparagraph (A), (B), (C), or

(D)of paragraph (4), the funds described in subparagraph

(E)of such paragraph. Declaratory judgment actions and direct action .— Any claimant to a claim or action to which paragraph

(4)applies may, with respect to such claim or action, either file an action for a declaratory judgment for insurance coverage or bring a direct action against the insurance company involved, except that no such action for declaratory judgment or direct action may be commenced until after the funds available in subparagraph[s] (A), (B), (C), and

(D)of paragraph

(5)have been exhausted consistent with the order described in such paragraph for payment. Federal Cause of Action.— Availability of action .— There shall exist a Federal cause of action for damages arising out of the hijacking and subsequent crashes of American Airlines flights 11 and 77, and United Airlines flights 93 and 175, on September 11, 2001 . Notwithstanding section 40120(c) of title 49 , United States Code, this cause of action shall be the exclusive remedy for damages arising out of the hijacking and subsequent crashes of such flights. Substantive law .— The substantive law for decision in any such suit shall be derived from the law, including choice of law principles, of the State in which the crash occurred unless such law is inconsistent with or preempted by Federal law. Jurisdiction .— The United States District Court for the Southern District of New York shall have original and exclusive jurisdiction over all actions brought for any claim (including any claim for loss of property, personal injury, or death) resulting from or relating to the terrorist-related aircraft crashes of September 11, 2001 . Nationwide subpoenas.— In general .— A subpoena requiring the attendance of a witness at trial or a hearing conducted under this section may be served at any place in the United States. Rule of construction .— Nothing in this subsection is intended to diminish the authority of a court to quash or modify a subpoena for the reasons provided in clause (i), (iii), or

(iv)of subparagraph

(A)or subparagraph

(B)of rule 45(c)(3) of the Federal Rules of Civil Procedure [28 U.S.C. App.]. Exclusion .— Nothing in this section shall in any way limit any liability of any person who is a knowing participant in any conspiracy to hijack any aircraft or commit any terrorist act. Subsections

(a)and

(b)do not apply to civil actions to recover collateral source obligations.