Novel Legal Concepts May Compensate Attack on America Victims
October 2, 2001
The September 11 Victim Compensation Fund of 2001, part of the so-called airline bailout legislation signed by President Bush on September 22, 2001, creates a unique system to compensate the families of victims of the Attack on America. Under the legislation, families can follow one of two legal routes in seeking redress.
The new law creates a special master whose job will be to determine each families' damages, which can include lost future income, medical expenses, funeral costs, and pain and suffering. Under the special master proceedings, families will not have to prove that the airlines involved in the terrorist attacks were negligent or otherwise at fault. Rather, they simply have to demonstrate their monetary loss to the special master who then determines a family's damage award. The Federal government will provide all funds awarded under the special master proceedings.
A significant benefit of the special master program is the expedited nature of the proceeding. While most conventional lawsuits take years to conclude, legal experts predict that those participating in the special master program will receive compensation checks within five months.
Some lawyers are criticizing the new process. These attorneys point out that punitive damages and appeals of the special master's decision are prohibited under the scheme. In addition, money awarded from the special master is reduced by whatever life insurance and workers compensation benefits the victim's family otherwise receives.
Families who decide not to participate in the special master proceedings may file suit against the airlines, building owners, flight training schools, security companies, and any other viable defendants. However, according to the airline bailout legislation, persons opting to file suit must do so in a specific New York City Federal court. In addition, the law limits the liability of airlines to the amount of their insurance coverage, the result of which will cap damages once that threshold is reached. Most aviation experts conclude that the airlines' insurance coverage for this incident will not exceed $6 billion.
In general, lawyers are abiding by the Association of Trial Lawyers of America's (ATLA) moratorium on filing lawsuits regarding the September 11 tragedy. The legal community continues to take a "wait and see" approach to the situation, not wanting to appear eager to generate business at this time of tragedy. However, at some point legal action will be necessary, and lawyers will be prepared to act when appropriate.
-- Article Courtesy of InjuryBoard.com
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