Ground Zero Health Claims Settled by 10,000 Workers

Ground Zero Health Claims Settled by 10,000 Workers

Nov. 19 (Bloomberg) -- More than 10,000 World Trade Center workers who claimed illness or injury after the Sept. 11, 2001, terrorist attack have reached a settlement on their claims against New York City and its contractors, lawyers said today.

The plaintiffs, representing 95.1 percent of all claims, crossed a 95 percent threshold needed to activate a fund of more than $625 million. The World Trade Center Captive Insurance Co., a U.S. government-funded entity protecting the city and its contractors, will disburse the money, according to a news release sent jointly by the company and claimant attorneys.

“We negotiated for over two years to achieve this settlement for our clients, which we truly believe is the best result,” said Paul Napoli, an attorney representing some of the workers. The addition of some of the still-to-be-evaluated plaintiffs who agreed to the settlement may increase the total compensation by more than $100 million, he said.

The Garretson Firm Resolution Group Inc., an independent claims-administration company with offices in Cincinnati and Charlotte, North Carolina, reported that 10,043 plaintiffs accepted the settlement. The company presented the results to U.S. District Judge Alvin Hellerstein in Manhattan, who presided over the litigation and previously declared the deal “fair, adequate and reasonable.”

More than 98 percent of those claiming the most severe injuries and health issues approved the agreement, the news release said.

Toxic Debris

In the absence of commercially available insurance, the World Trade Center Captive Insurance Co. was formed in July 2004 to insure the city and about 140 contractors, subcontractors and others against claims arising out of the debris-removal process after the collapse of the Twin Towers.

The lawsuits arose out of claims that illness and injury resulted from the alleged failure of the city and its contractors to provide gear that would protect against toxic debris, dust and fumes from a fire at the site that burned for weeks after the attack.

Those claiming debilitating respiratory illnesses, such as severe asthma contracted by a non-smoker within seven months of exposure at the World Trade Center site and surrounding areas, may receive between $800,000 and $1.1 million, with about $1.5 million for claims of death. Plaintiffs who have no qualifying injury yet fear becoming sick will receive $3,250, the law firms said in a news release.

All qualifying plaintiffs will be enrolled in a special insurance policy through MetLife Inc. to provide coverage for certain blood and respiratory cancers diagnosed during the coverage period, paying a benefit of as much as $100,000.

“This settlement is a fair and just resolution of these claims, protecting those who came to the aid of this city when we needed it most,” Mayor Michael Bloomberg said in a statement.

source: businessweek.com