The fire was caused by the improper use of a propane torch during roofing operations as the synagogue neared completion of a multi-year renovation of its Sanctuary building. The available insurance coverage was insufficient to pay the cost of rebuilding the Sanctuary. The litigation involved claims by Central Synagogue and its insurer against the roofing subcontractor, the prime contractor, and the construction manager in charge of the project for their roles in causing the fire and allowing it to spread unreported. Central Synagogue also brought a separate suit, which was settled before trial, against its insurance broker for its failure to ensure that the synagogue was adequately insured.

A jury trial on liability issues was conducted from May 9, 2001 through June 4, 2001 before Judge Robert W. Sweet of the U.S. District Court for the Southern District of New York. The trial resulted in a verdict against all three defendants on all causes of action asserted by Central Synagogue. Two third-party defendants, against which Central Synagogue asserted no claims, were dismissed by the court before verdict. A third was found not liable after having settled separately with Central Synagogue and its insurer during the course of the trial.

Central Synagogue settled its claims against the defendants shortly before the damages trial was to begin.

As a result of the settlement, the court did not have to decide a key issue that is also of substantial importance to claims arising out of the September 11 terrorist attacks -- whether charitable donations made to the victim of a tort should adversely affect the victim's ability to recover directly from the tortfeasor. Central Synagogue argued that donations received by it in the wake of the fire should not be subtracted from the amounts recoverable from the defendants, as this would give the wrongdoers the benefit of the donations. Central Synagogue's position was supported by various amici curiae, including a group of religious and charitable institutions and the office of the New York State Attorney General.

The trial team for Central Synagogue was led by partner Bruce S. Kaplan, assisted by associate Andrew R. Greengrass. Other FKS&A lawyers representing Central Synagogue included partners Robert D. Kaplan, Robert J. Lack, and Lance J. Gotko and associates Daniel B. Rapport and Hallie B. Levin. A substantial amount of the firm's work on the case was performed pro bono.