NY1.com

  67º

Updated 03/19/2010 09:17 PM

Judge Orders Renegotiation Of Sept. 11th Health Care Settlement

By: Grace Rauh

  To view our videos, you need to
enable JavaScript. Learn how.
install Adobe Flash 9 or above. Install now.

Then come back here and refresh the page.

A federal judge said Friday that the city should renegotiate a settlement that originally offered $657 million to people who got sick after working at the site of the World Trade Center terrorist attacks, but some questioned whether the judge needs to approve the deal.

Some of the 10,000 September 11th workers and their families involved with the lawsuit were invited to weigh in on the settlement at the Pearl Street Courthouse, to determine whether a proposed settlement is fair and appropriate. However, in the later afternoon, Judge Alvin Hellerstein said, "In my judgment the settlement is not enough," and said that the deal was "based on fear and ignorance."

One of the biggest questions is how much each plaintiff will receive of the $657 million payout. The original deal said a neutral third party was expected to decide individual cash payments, which could range from a few thousand dollars to more than a million.

Hellerstein also raised questions about sizable legal fees that the would be paid out to attorneys.

In turn, lawyers for both sides questioned on Friday whether the judge has the authority to grant the final approval for the settlement.

Some first responders and World Trade Center workers leaving court told NY1 that they were willing to take extra time to renegotiate the settlement if it meant that they could receive more money for their health problems.

"I don't care if I die waiting, I really don't. As long as we receive the proper justice, my fellow responders, I could care less what happens to me," said former first responder Scott Chernoff.

"I was one of the first cases, where we started from, 'I didn't believe you got sick down there,' to 'Now we need money in the future.' We're headed in the right direction," said former first responder John Walcott.

"Since 9/11, 2001, everything was a rush. They rushed to get us in there, they rushed to get Wall Street open. All these things that they rushed to do, nothing good came out of it," said former first responder Rich Volpe. "So, I'm taking the opinion that [Hellerstein's] not going to rush, he's going to take his time, and I think something good will come out of that."

The original settlement said that 95 percent of the workers had to agree to the deal.

The workers who take compensation through any payout from the city would not be eligible for additional financial compensation proposed in the federal James Zadroga bill, which was approved by a House of Representatives committee earlier this week.

The plaintiffs would be eligible for the bill's long-term health benefits.

The World Trade Center Captive Insurance Company, which insured the city and the contractors involved and played a role in drafting the agreement, was not happy with the judge's decision.

"I am very disappointed that the judge has now made it more difficult, if not impossible, for the people bringing these claims to obtain fair, timely and just compensation -- a settlement that they have long waited for," said WTC Captive Insurance President and CEO Christine LaSala.

LaSala said the company will consider what the judge said, consult with the city and contractors and try to find a way forward.

By late Friday, it was unknown whether Hellerstein's remarks destroyed the deal. The judge called for another hearing on the settlement next month.