A federal judge rejected the $575-657 million settlement the city is offering thousands of first responders sickened by conditions at Ground Zero after the September 11, 2001 attacks. Judge Alvin Hellerstein said, "In my judgment the settlement is not enough... I will not preside over a settlement that is based on fear or ignorance.... the people who responded on 9/11 were our heroes... They cushioned the blow. ... They brought us back from that blow."
One of Hellerstein's concerns was that plaintiffs would have to sign onto the deal without knowing how much they were entitled too—while some might receive $1 million plus, an estimated 40-60% of them could receive as little as $3,200 to $9,750. (Another analysis says the average payout will be around $60,000-65,000.) He was already concerned about legal fees—about one third of the total settlement—"Every plaintiff here is burdened by a lawyer's fee that is hard to gauge and will take a large bite out of every [settlement]" and suggested the nonprofit, WTC Captive Insurance Company, that is distributing the money should pay the legal fees.
Hellerstein made his decision after hearing testimony from a number of plaintiffs and many were impressed with his compassion; one former NYPD detective now suffering from lymphoma told the Daily News, "He actually listened, and heard what people had to say. He said it was too little for what people had suffered, and that cancer numbers were too low. I feel that there's now light at the end of the tunnel - something that is good for everyone." However, it's unclear whether Hellerstein has the authority to reject the deal.
City lawyer Michael Cardozo said, "We are disappointed the judge did not accept the settlement that took two years to negotiate," and Christine LaScala, president of the WTC Captive Insurance Company, said, "I am very disappointed that the judge has now made it more difficult, if not impossible, for the people bringing these claims to obtain compensation and a settlement. We heard people today plead for an end to this litigation that was fair and just. That is what we focused on and achieved. We will consider what the judge has said and consult with our insureds and try to find a way forward."
