In February 1991, a 19 hours fire, which caused extensive structural damage to the 22nd to 30th floors of this office building, resulted into one of the largest fire insurance claims in North America. The central issue of the legal dispute between the insurer and the owner was whether the building can be repaired, at a cost of $115 millions, or needed to be torn down halfway and rebuild from the 19th floor, at a cost of $261 million. The insurer was represented by the Chicago law firm Kostow & Daar, P.C.
Several studies, computer simulations, and field and laboratory testing were performed on behalf of each party, to substantiate their positions on the structural integrity of the building.
To a large extent, the $146 million cost differential between the two parties positions hinged on stress analysis results. While with a forensic engineering firm in New York City, Dr. Danay served as computer stress analysis expert on behalf of the insurer.
The case was settled out-of-court.
Danay
Engineering Ltd.