W000185
Wednesday, November 07, 2001 1:44 PM
Comments concerning the Victims Compensation Fund
Please accept the following comments concerning the Victims Compensation
Fund.
I have read several news articles concerning the Victims Compensation
Fund (the "Fund"), many of which indicate that this Fund will be
difficult at best to administer, and which, when looking at how funds
could be doled out, would ensure that many families would actually
receive nothing from opting into the Fund. I lost my oldest brother in
the WTC terrorist attacks. He was a trader with Keefe, Bruyette and
Woods. He left behind a wife and three teenage children who we
anticipate will attend college. As a result, our family has been
advising my sister-in-law to seek that recovery which can best provide
for the well-being and financial security of her and her children. I
have several comments concerning how I believe the Fund should operate
to ensure this.
According to some of the initial information on the Fund, the government
will be subtracting any collateral sources from any amount which the
special master would award. My brother acted responsibly and purchased
life insurance (paying premiums) for his family which the government now
would like to penalize him for and reduce any Fund award accordingly.
As for charity funding, this will not be an issue since my sister-in-law
has received virtually nothing. However, once you subtract any
insurance proceeds, the government is practically ensuring that my
brother's will get nothing. I do NOT believe that any collateral sources
should be applied to reduce the amount that the victims' families should
get.
I believe the government should also promulgate a scheme which is
similar to that which a litigant would be afforded in a civil personal
injury or wrongful death claim. The amount awarded as damages should
encompass all funeral, burial and estate administration expenses
incurred, as well as an amount that will fairly and adequately
compensate my brother's family for contributions they would have
received between the time of his death and the end of his life
expectancy such as future lost wages. My brother's gross earnings,
including all fringe benefits between the date of his death and his life
expectancy, must be factored in. Additionally, all moneys that my
brother would have spent for or given to his family for such items as
shelter, food, clothing, medical care, education, entertainment, gifts
and recreation, taking into account his salary and age, must also be
considered. The amount awarded should also consider the comfort and
friendship that he would have given to his family had he lived and such
other elements as work around the home and provisions of society and
comfort.
Additionally, a component should be added for the physical pain and
suffering endured by my brother at the time of his death as a result of
the wrongful conduct of numerous parties and/or potential defendants.
Furthermore, the amount awarded by the Fund should be intended to
restore my brother's family's loss and thus should not be considered as
"Income" which is taxable by the federal government or the states.
At present, the government is also demanding that families who opt into
the Fund forego the right to sue without giving them any kind of idea
what they can anticipate at the other end. Without a skeleton scheme in
place concerning what factors will be looked at when reaching a
settlement, the amounts awarded could be completely arbitrary based on
the special master's whims on a particular day. I have read the the
Fund provisions would also make such award decisions unappealable.
Would you recommend that your client settle a claim without having any
idea what kind of settlement you are actually recommending to him or
her? No competent attorney would do any such thing as it would be legal
malpractice. The families need to be fully aware in advance what they
can approximately expect to receive based on an analysis of the above
factors. Only then can the government ensure that there will be an
incentive for the families to sign onto the Victims Compensation Fund.
It is my hope that the above will aid in your analysis and will echo the
sentiments of many families that are in the same tragic situation as my
brother's family currently is.
Sincerely,
Individual Comment
East Windsor, New Jersey