NU Online News Service, June 10, 3:00 p.m. EDT

An agreement has been reached to settle workers' claims againstthe World Trade Center Insurance Company for more than $712million, a $125 million increase over a settlement nixed by afederal judge in March.

Judge Alvin K. Hellerstein, of the U.S. Federal District Courtfor the Southern District of New York, approved today thesettlement, between more than 10,000 plaintiffs and the WTCCaptive, that reduces attorneys' fees and increases payments toplaintiffs.

Judge Hellerstein rejected an earlier settlement agreement in March for $657million in part because he felt attorneys were paid too much. Healso felt the captive should pay plaintiffs' attorney fees andother expenses.

According to a statement, Judge Hellerstein will hold a hearingon June 23 to hear from the parties to the settlement. Theplaintiffs were workers that New York City hired to clean up debrisafter the 9/11 attack and other responders who were subsequentlyinjured as a result.

Under the agreement, those suffering debilitating respiratoryillnesses, such as asthma, could receive between $800,000 and morethan $1 million. Approximately $1.5 million could go to compensatedeath claims. Anyone with a legal claim for fear of becoming sick,but with no qualifying injury, will receive $3,250.

A special insurance policy will provide coverage for certainblood and respiratory cancers diagnosed during the coverage periodand will pay a benefit of up to $100,000.

The agreement limits attorneys' fees to 25 percent of thesettlement, but according to court documents, plaintiffs couldstill be subject to additional attorneys' fees depending upon theagreement they signed with their attorneys.

Kenneth R. Feinberg, who served as the special master for theSept. 11 Victim Compensation Fund and is currently serving asspecial master for the Trouble Asset Relief Program, will serve asneutral mediator for appeals of any claims denied by a neutralmedical third-party evaluator.

In order for the agreement to take effect, 95 percent ofparticipating plaintiffs must agree to the settlement.

"This settlement gives the plaintiffs immediate, fair andreasonable compensation, certainty and closure after years ofprotracted and costly litigation that will continue without thisagreement," said Christine LaSala, president and chief executiveofficer of the WTC Captive, in a statement.

"This is a fair settlement of a difficult and complex case thatwill allow first responders and workers to be fairly compensatedfor injuries suffered following their work at Ground Zero," saidNew York Mayor Michael R. Bloomberg in the same statement.

He added that the city will continue to treat and monitor thosewho were present at Ground Zero.

One attorney, Marc J. Bern, a senior partner with the law firmWorby, Groner, Edelman & Napoli, Bern, LLP, representing 9,000litigants, said the settlement "ensures guaranteed, immediate andjust compensation...."

According to a source, Judge Hellerstein, who commented on thesettlement today, said there was a major difference between thisagreement and the prior one he was critical of.

He is quoted as saying, "This is a very good deal. I am veryexcited about this deal." He added that the agreement meansplaintiffs will be "assured of a fair deal that puts money in theirhand fast."