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When Emilio Barletto's restaurant was shut down for two weeks following last summer's scaffolding collapse at the new Conde Nast tower, he thought he'd have no problem recouping most of his losses.
After all, developer Douglas Durst said his insurers would expeditiously process claims from businesses and residents affected by the accident at the 48-story building in the heart of Times Square.
Mr. Barletto, who estimates the closing of his Trattoria Dopo Teatro cost him more than $100,000, followed Mr. Durst's advice. But after being offered just $7,000 to settle his claim, the restaurateur is crying foul.
"They spent three days going through my books," he says. "It's insulting. It's a joke."
Mr. Barletto is one of many Times Square businesspeople still picking up the pieces from last July's scaffolding accident, which forced the city to seal off area streets for several weeks. While none was forced out of business, many suffered substantial losses that the developer and his insurers are refusing to compensate.
Meanwhile, more than $5 million has been paid to the residents of the Woodstock Hotel, which was damaged by tons of debris and where one woman died. Mr. Durst's company has collected on much of the $20 million in losses it sustained from the accident.
Some frustrated business owners, like Mr. Barletto, are now suing The Durst Organization and the project manager, Tishman...