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Kreindler & Kreindler: Prior Developments

September 11 Attacks: The Firm Has Been Retained By Numerous Families Of Airline And Ground Victims Injured And Killed In The September 11 Attacks

The firm has been retained by numerous families of airline passengers and ground victims who were killed or injured at the World Trade Center and the Pentagon in the September 11 attacks.

The September 11 victims have the choice of proceeding with traditional court litigation or filing a claim under a new federal Compensation Fund.

A landmark piece of legislation, the September 11 Victim Compensation Fund of 2001, was enacted following the disaster. An article summarizing the impact of the new law, Pros and Cons of Victim's Fund, was written by the late senior partner Lee Kreindler for the New York Law Journal.

In the Compensation Fund legislation, the U.S. government provides a no-fault damage recovery for wrongful death or personal injury caused by the September 11 attacks. The victim who accepts the Fund remedy forfeits the right to proceed with court litigation before a jury. After our firm's lobbying efforts, the Fund law was amended to permit families to accept a Fund recovery and still bring suit in court against the terrorists and any nation that may have sponsored the terrorists' acts.

The Compensation Fund recovery includes economic damages and a broad range of non-economic damages. The Fund awards will be determined by a Special Master, Kenneth Feinberg, a New York and Washington, D.C. attorney appointed by Attorney General Ashcroft. The damage awards of the Special Master (who will use officers to hear individual cases) will be final and not subject to appeal.

Two of the firm's partners were invited to meet with Special Master Feinberg shortly after his appointment to discuss how claims will be handled under the Compensation Fund. The firm's partners have also submitted extensive written recommendations to various bar groups regarding the Fund.

The Fund law provides for the right for a hearing and representation by legal counsel in a Fund claim. Several bar groups, including the Association of Trial Lawyers of America, have agreed to provide legal services on a pro bono, or free, basis for those who wish to file claims with the Fund. Our firm is handling Fund claims, together with potential litigation against the terrorists and sponsoring nations, on a sharply reduced fee basis.

It is apparent that in most cases detailed proof and damage analysis, comparable to the evidence presented to a jury at a court trial, must be presented to the Special Master to obtain the full measure of compensation available from the Fund.

At this time, there are many unresolved questions regarding how the Fund will operate in practice. The Special Master will issue regulations for the Fund on December 21, 2001. The claims process will start thereafter.

It is expected that many of the September 11 victims will choose the Fund recovery because of the difficulties of proving liability and the uncertain prospect of a full recovery from a lawsuit, given the limited available insurance coverage (the Fund legislation also limits the liability of the airlines and other parties to their coverage).

It is possible that pursuing litigation in court, rather than the fund, will be a better option for the families of passengers aboard United Airlines Flight 93, which crashed in Pennsylvania, and Amercian Airlines Flight 77, which crashed at the Pentagon. That is because the airlines probably have adequate insurance coverage for these crashes.

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