Motion Filed To Halt Judge's Action On WTC Settlement

The attorneys for the city and contractors it hired for the rescue, recovery and debris removal after the terrorist attacks of Sept. 11, 2001 appealed several orders by U.S. District Court Judge Alvin K. Hellerstein in Manhattan.

His actions, they argued, are blocking the parties' ability to choose to settle more than 10,000 cases alleging injury,

Through his orders, the Judge inserted himself into a private settlement, the attorneys said, which in many instances would provide hundreds of thousands of dollars and more in the most serious cases, to plaintiffs alleging injury.

In the proposed settlement, an initial $575 million award would increase if 96 percent or more of all plaintiffs with claims opted into the settlement. If all plaintiffs agreed to the settlement, an additional 10 percent of $575 million–or $57.5 million would be due.

Judge Hellerstein announced, after hearing from nine persons who claimed injury during the World Trade Center cleanup, that while people "want to get on with their lives, what I'm going to say is going to suggest some delay, but I nevertheless want to say this. In my judgment, this settlement is not enough."

According to a transcript of the hearing, Judge Hellerstein said that ordinarily such settlements would be between the parties to decide, but that "This is different. This is 9/11. This is a special law of commons. This is a case that's dominated my docket, and because of that, I have the power of review. If I don't think it is fair, I'm going to tell you that, and you will make the judgment how to deal with it."

Secondly, he said, while the attorneys deserve "a reasonable and perhaps even generous fee. In my judgment, they are not entitled to their contract rights of a third, thereabouts. So I will fix the reasonableness of the fee, and the fee will be payable by the captive insurance, and that amount of money will be available for distribution to the plaintiffs."

Mr. Tyrrell said today, "We have no choice but to ask Judge Hellerstein to stay these proceedings in order to allow the United States Court of Appeals for the Second Circuit time to decide an appeal filed on April 14, 2010 before further proceedings are conducted in the district court."

He noted, "That appeal was filed against several orders that we believe deny the plaintiffs the opportunity to decide whether to choose a settlement that in many instances would provide hundreds of thousands of dollars to plaintiffs alleging more serious injuries. We believe each plaintiff has a fundamental right to decide for him or herself whether to join what we believe is a fair and just settlement of their claims, which would provide certainty, compensation and closure, without proceeding with protracted litigation."

Attorneys for the City and its contractors also are appealing two other rulings related to their Settlement Process Agreement. First, they are appealing a March 23 order that revised the parties' agreed schedule for implementing their settlement. Second, they are appealing an April 9 order setting a "fairness" hearing that they said the court has no power to conduct.

The attorneys noted that each of these orders delayed and obstructed compensation for the plaintiffs and closure for all settling parties.