Should 9/11 Responders Drop Pending Lawsuits by 1/2/2012 in Favor of Zadroga Act Federal Victim Compensation Benefits?

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To use an analogy, are you a "conservative investor" or do you like to take more risk? Or said another way, are you willing to gamble with litigation and pay your lawyers 25 or 33 1/3 % of a potentially higher return, or would you rather receive a quicker determination from the 9/11 Victim Compensation Fund re-opened by the James Zadroga Act and pay your lawyers only 10% as capped by law?

As reported by the Associated Press on 12/25/2011, if you are one of the estimated 1600 responders who still have a pending 9/11 lawsuit (not one where you are simply waiting to receive full payment), you have a choice to make prior to January 2, 2012.   Therefore, you essentially have to make the decision now.

Under the Zadroga Act, in order to claim benefits under the 9/11 Victim Compensation Fund, anyone with a pending 9/11 related lawsuit must withdraw from such lawsuit by January 2, 2012. The details of what one has to do to withdraw from such a lawsuit are below:

2.13 If I participated or am currently participating in a lawsuit related to September 11th, can I participate in the VCF? (Updated: December 5, 2011)

Yes, if you withdraw from the lawsuit or settled the lawsuit as described below. Therefore, if you or any dependent, spouse or beneficiary has filed a lawsuit or have been a party to a lawsuit in any Federal or State court relating to or arising out of damages sustained as a result of the terrorist-related aircraft crashes of September 11, 2001 or for damages arising from or related to debris removal (other than a lawsuit to recover collateral source obligations or a lawsuit against any person who is a knowing participant in any conspiracy to hijack or commit any terrorist act), you may be able to obtain compensation from the VCF if you meet the following conditions (and if you are otherwise eligible):

  • Pending actions: Individuals who have filed a lawsuit described above or who are a party to such a lawsuit may not file a claim with the Special Master unless they withdraw from such lawsuit on or before January 2, 2012. You must submit proof of timely withdrawal with your claim. For purposes of the Eligibility Form, you may submit either a court order establishing that the action has been discontinued and/or dismissed dated on or before January 2, 2012 or a notice/letter of withdrawal filed on the ECF system in the relevant docket on or before January 2, 2012. For purposes of receiving compensation, you must submit the final order of the court confirming the withdrawal or dismissal or all claims. That order may be dated after January 2, 2012 only if you have provided proof that you filed a notice of withdrawal on the ECF system in the relevant docket on or before January 2, 2012.
  • Settled actions: In the case of an individual who settled a lawsuit described above, such individual may not submit a claim with the VCF unless the lawsuit was commenced after December 22, 2003 and a release of all claims in such lawsuit was tendered by the individual, or by the individual’s attorney (provided the attorney has authority to tender the release) prior to January 2, 2011. You must submit proof documenting the date of commencement and release of all claims with your claim. If an attorney signed and submitted the release on behalf of the individual or the individual’s dependent, spouse or beneficiary, a copy of the retainer agreement with the attorney in the settled lawsuit must be submitted as proof that the attorney was authorized to sign the release.

If you have participated or are currently participating in such a lawsuit, you must certify on your claim form that the above conditions are satisfied.

So, should you withdraw?  Bottom Line - every individual must make the decision based upon the facts of their own case, unbiased competent legal advice and their own tolerance for risk. Clearly, the litigation route is riskier because lawyers will have to prove "fault" by the defendants, while the 9/11 Victim Compensation Fund is a safer because you only have to prove damages.  However, the litigation route could lead to a greater recovery, even after you pay the higher percentage attorneys' fees.

Can you get unbiased advice from an attorney who stands to gain more fees in litigation? I am not so sure.  Read the letter here from the law firm of Worby, Groner Edelman & Napoli Bern, LLP dated 12/21/2011 which was sent to one of my clients  and followed up with a phone call, urging him to reconsider his previous decision to apply for the federal Zadroga Act 9/11 Victim Compensation Fund. You be the judge. In my opinion, these types of letters almost demand an second legal opinion.

When I pointed out to my client that the letter from Worby Groner itself was factually wrong - he has been receiving Social Security Disability benefits for some time -  my client decided to stay with the safer and potentially more generous 9/11 Victim Compensation Fund.  

As John Feal urges in the attached letter, be careful out there and make the right decision in based upon the facts after advice from an attorney you trust. 

If you do choose to withdraw from your pending lawsuit in favor of Zadroga Act benefits, I suggest you send your current litigation lawyer a letter by FedEx tomorrow stating that you wish to "withdraw from any and all pending 9/11 lawsuits" and asking them to "take all actions to preserve my right to file a Zadroga claim".  Unfortunately, you really need to do it now!  Good luck! 

 

 

New Zadroga 9/11 Act Victim Compensation Fund FAQ's from Justice Department

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The US Justice Department and Zadroga Act VCF Special Master, Sheila Birnbaum, just released a new set of clear and concise Zadroga 9/11 Act "Frequently Asked Questions" (FAQ's) on the Justice Department Zadroga website. They are so good and comprehensive, we have decided to re-publish them below in their entirety. Click here for a down-loadable and printable version of the Zadroga 9/11 Act Justice Department FAQ's. We hope they are helpful.

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What is the new VCF?

On January 2, 2011, President Obama signed the Zadroga Act, which reopens the September 11th Victim Compensation Fundof 2001.  The Zadroga Act expanded the scope of the original VCF to enable more individuals who suffered physical injury or death as a result of the September 11th attacks to obtain compensation from the program.  Like the initial VCF, the Act provides that an individual who elects compensation from the VCF waives his or her rights to pursue litigation to seek damages for the physical injury or death resulting from the September 11th attacks. 

The new VCF will be administered  by Special Master Sheila Birnbaum, who has been appointed by the Attorney General of the United States. 

The VCF will accept claims for five years  and will complete the payment of claims during 2016-17.  It is important that you understand the filing rules, because you must submit your claim within two years of the date you know of the physical injury or death resulting  from the attacks (or, if you already know of the physical injury or death in question, within two years of the date that the regulations are finally updated). 

Congress has appropriated a fixed sum of money for the VCF.  This fixed sum is $2.775 billion.  Congress has also determined that $875 million of that total amount may be paid out in the first five years of the VCF program.  The remainder may be paid in the sixth year. 

The limitations on funding for the VCF means that in the first five years of the program, claimants will receive only a portion of the compensation allowed under the rules of the VCF.  Depending on the number and type of claims, and in order to ensure that all eligible claimants receive an award, the Zadroga Act’s cap on funding means that it is possible that claimants’ awards will be pro-rated.

Who will be eligible for the new VCF?

The Zadroga Act provides that individuals present at the September 11th crash sites at the time of the crashes or between September 11, 2001 and May 30, 2002, and who suffered physical harm as a direct result of the crashes or debris removal, and the personal representatives of those who were present at the crash sites at the time of the crashes or in the immediate aftermath and who died as a direct result of the crashes, are eligible. 

The VCF’s draft regulations, which you may comment on at www.regulations.gov, define eligible physical harm to mean a physical injury to the body that was treated by a medical professional within a reasonable time from the date of discovering the harm.  In addition, the physical injury must be verified by or at the direction of the medical professional who provided contemporaneous medical care.

In order to be covered by the VCF, your physical condition must have been a result of September 11th.  To help make these determinations, the Special Master will identify conditions that are presumptively covered by the VCF.  The draft regulations provide that initially, the presumptively covered conditions will consist of physical injuries that are determined to be World Trade Center (WTC)-related health conditions by the WTC Health Program that is operated by the National Institute for Occupational Safety and Health and provides medical treatment and monitoring for WTC-related health conditions. 

Initially, those  presumptively covered conditions include the following: 

Aerodigestive Disorders

  • Interstitial lung disease
  • Chronic Respiratory Disorder – fumes / vapors
  • Asthma
  • Reactive Airways Dysfunction Syndrome (RADS)
  • WTC-exacerbated Chronic Obstructive Pulmonary Disease (COPD)
  • Chronic cough syndrome
  • Upper airway hyperreactivity
  • Chronic rhinosinusitis
  • Chronic nasopharyngitis
  • Chronic laryngitis
  • Gastro-Esophageal Reflux Disorder (GERD)
  • Sleep apnea exacerbated by or related to the above conditions. 

Musculoskeletal Disorders

  • Low back pain
  • Carpal tunnel syndrome (CTS)
  • Certain other musculoskeletal disorders for WTC responders who received treatment for a WTC-related musculoskeletal disorder that meets certain criteria.

Claimants who have a presumptively covered condition that was caused as a result of September 11th and are otherwise eligible may receive compensation from the VCF for certain losses.

When will the VCF open for claims?

The VCF is currently taking public comment on the draft rules that it published in June, meeting with those affected by the program, designing claims forms, and building the infrastructure that is necessary for a claims process.  After all of the comments on the VCF’s draft rules have been received, and the Special Master has considered how those comments should affect the program, the VCF will publish its final rules this Fall and begin receiving claims shortly thereafter.

Does it cost anything to file a claim?

No.

How long will claimants have to submit their claims?

In general, claimants will have two years to submit a claim.  The Zadroga Act provides that a person who knows of physical harm resulting from the September 11th attacks as of the date the regulations are published must file within two years of  the date of the regulations.  A person who subsequently learns of physical harm must file the claim within two years of the date you learn or should reasonably have known that you suffered a physical injury as a result of the attacks.

The Zadroga Act authorizes the VCF to receive claims for five years after it opens in 2011.  Final payments will be made in 2016-17. 

How are VCF awards and administrative costs funded?

The VCF is a government program, funded by taxpayers.  Congress appropriated $2.775 billion for the VCF, to cover both awards made to claimants and administrative costs.  Because every dollar spent on administrative costs is a dollar that cannot be paid to claimants, the VCF must provide a streamlined, efficient administrative process.

How long will the World Trade Center Health Program last?

Congress has funded the health program for at least the next five years, through 2016. 

For further questions about the World Trade Center Health Program, please contact them by phone at 1-888-WTC-HP4U (1-888-982-4748), or on the web at http://www.cdc.gov/niosh/wtc.

Eligibility

What are the eligibility requirements for participation in the new VCF?  Are the eligibility requirements the same as during the VCF’s first iteration, or have they changed?

The Zadroga Act changed the eligibility requirements to authorize claims from persons who were present at the crash sites between September 11, 2001 and May 30, 2002.  In addition, the Act changed the eligibility criteria to include claims from persons who suffered physical harm or death as a result of the crashes or as a result of debris

The Zadroga Act and the proposed rules state that to be eligible, a claimant must have been present at a “9/11 crash site” on September 11th or during its immediate aftermath.  What are the crash sites?

Under the Zadroga Act, the crash sites include the World Trade Center site, the Pentagon site, the Shanksville site, debris removal routes such as barges and Fresh Kills, and any area that is sufficiently close to the crashes that the Special Master determines to have had a demonstrable risk of physical harm.

Although the rules for the VCF are not yet final, the VCF’s draft rules, which are available at www.justice.gov/vcf, propose that this area should include the area in Manhattan south of the line that runs along Reade Street from the Hudson River to the intersection of Reade Street and Centre Street, south on Centre Street to the Brooklyn Bridge, and along the Brooklyn Bride. 

(If you would like to submit a comment on the draft rules, you may find instructions on how to do so at www.justice.gov/vcf.)

I was not present at a 9/11 crash site, as those areas are defined in the proposed rules, but I believe my health condition was caused by September 11th.  Will I be eligible for the fund?

You may still be eligible.  Although the rules for the VCF are not yet final, the VCF’s draft rules, which are available at www.justice.gov/vcf, propose that the Special Master may find that there were other areas in which there was a demonstrable risk of physical harm resulting from the impact of the aircraft or any subsequent fire, explosions, or building collapses. 

In addition, please note that the proposed rules are not final. You may submit comments on this or any other provisions of the proposed rule at www.regulations.gov.  You may find instructions on how to do so at www.justice.gov/vcf.

If I applied to the VCF during its first iteration and my claim was denied, can I apply again now?

Although the rules for the VCF are not yet final, the VCF’s draft rules, which are available at www.justice.gov/vcf, propose that individuals who submitted claims in the VCF’s first iteration may amend and re submit their claims in certain circumstances:

  • The individual suffered a new injury that is eligible under the new VCF;
  • The individual’s prior eligible condition has substantially worsened, resulting in damages or loss that was not previously compensated;
  • The individual was not previously eligible for the VCF, but is now eligible as a result of changes contained in the Zadroga Act;
  • The individual’s previous claim was based on a condition that was not previously covered by the VCF, but that is now covered.

(If you would like to submit a comment on the draft rules, you may find instructions on how to do so at www.justice.gov/vcf.)

If I applied to the VCF during its first iteration and my claim was granted, can I apply again now?

Although the rules for the VCF are not yet final, the VCF’s draft rules, which are available at www.justice.gov/vcf, propose that individuals who submitted claims in the VCF’s first iteration may amend their claims in certain circumstances:

  • The individual suffered a new eligible  injury;
  • The individual’s eligible condition has substantially worsened, resulting in damages or loss that was not previously compensated;
  • The individual was not previously eligible for the VCF, but is now eligible as a result of changes contained in the Zadroga Act;
  • The individual’s previous claim was based on a condition that was not previously covered by the VCF, but that is now covered.

(If you would like to submit a comment on the draft rules, you may find instructions on how to do so at www.justice.gov/vcf.)

If I did not experience any physical injury or death as a result of September 11th, but I experienced emotional or mental harms as a result of the events, am I eligible for the VCF?

No.  When Congress first created the VCF in 2001, it directed that only claimants who have a “physical injury” can be eligible for the VCF, and Special Master Ken Feinberg interpreted that phrase to mean “a physical injury to the body,” thus excluding claims for psychological conditions. 

In the Zadroga Act, Congress did not change how the VCF treats psychological conditions.  As a result, the VCF is not able to accept claims solely for psychological conditions.

The World Trade Center (WTC) Health Program does provide options for treatment of psychological conditions.  For information about whether you may be eligible for treatment for emotional or mental harms by the WTC Health Program, you may contact them by phone at 1-888-WTCHP4U (888-982-4748), or on the web at http://www.cdc.gov/niosh/wtc.

Do I have to live in New York to participate in the VCF?

No.  You do not have to live in New York to participate in the VCF. 

If I do not live in New York, how can I participate in the VCF?

Claimants will be able to submit information to the VCF through the mail or over the internet.  If a claimant would like a hearing to appeal his or her award, the VCF will make every effort to accommodate long-distance hearings through video-conference or, where necessary telephone conferences.

If I was not a uniformed responder, am I eligible for the VCF?

You do not have to be a uniformed responder to be eligible. Under the Zadroga Act, to receive a payment from the VCF, an individual must have been present at a September 11th crash site between the time of the crashes and May 30, 2002, and have suffered physical harm or death as a result of the September 11th air crashes or debris removal.

Are foreign nationals eligible for the VCF?

Yes.  The Zadroga Act permits both U.S. citizens and foreign nationals who satisfy the VCF’s eligibility criteria to participate in the VCF.

The Process / Determination of Awards

What kind of medical exam will be required for the VCF?

The rules for the VCF are not yet final.  In some cases, the VCF may be able to accept medical examinations provided under the World Trade Center Health Program.  It is possible that the type of medical exam required will vary depending on the claimant’s particular medical condition.  The VCF will publish more detailed guidelines in the future.

If I have not yet suffered economic harms, but fear that I may suffer economic harms in the future, should I submit a claim to the VCF now?

If you already know that you suffered physical harm as a result of September 11th, the Zadroga Act requires you to file with the VCF within two years of the date it opens.  This requirement applies whether or not you have suffered economic harm as a result of your condition. 

Although the rules for the VCF are not yet final, we expect that the VCF will consider future expected loss based on the claimant’s condition consistent with the methodology applied in the first VCF.    Similarly, individuals whose conditions substantially worsen after they submit their claim may be able to amend their claims.  The VCF’s draft rules, which are available at www.justice.gov/vcf , contemplate that an individual whose condition has substantially worsened, resulting in damages or loss that was not previously compensated, may amend his or her claim.  (If you would like to submit a comment on the draft rules, you may you may find instructions on how to do so atwww.justice.gov/vcf.)

If I have not yet suffered economic harms, but my condition is expected to worsen, am I eligible for the VCF?

If you already know that you suffered physical harm as a result of the September 11th attacks or subsequent debris removal, the Zadroga Act requires you to file with the VCF within two years of the date it opens.  This requirement applies whether or not you have suffered economic harm as a result of your condition. 

Although the rules for the VCF are not yet final, we expect that the VCF will consider future expected loss based on the claimant’s condition consistent with the methodology applied I the first VCF.  Similarly, individuals whose conditions substantially worsen after they submit their claim may be able to amend their claims.  The VCF’s draft rules, which are available at www.justice.gov/vcf, contemplate that an individual whose condition has substantially worsened, resulting in damages or loss that was not previously compensated, may amend his or her claim.  (If you would like to submit a comment on the draft rules, you may you may find instructions on how to do so at www.justice.gov/vcf.)

If I am found eligible for the VCF, what treatments are covered?

The treatments that are covered for a particular claimant will depend on the nature and severity of the claimant’s condition.

 

Attorney-Client Issues

Do I need an attorney to participate in the VCF?

No, you are not required to have an attorney.  You are free to consult with attorneys and you should make your own decision as to whether you wish to engage an attorney.  Some attorneys have indicated a willingness to provide some assistance on a pro bono basis. 

If I choose to use an attorney, how will the attorney be paid?

The VCF will not reimburse claimants for fees charged by their attorneys.  Such fees must be paid by the claimant.  The Zadroga Act also provides a limitation on how much an attorney may charge in connection with the VCF.  Under the Zadroga Act, attorneys may not charge any claimant more than 10% of the payment the claimant receives as a VCF award. 

Attorneys who also charged their client a fee in connection with certain other September 11th-related litigation and settlement may only charge that client for representation before the VCF if the attorney’s total charge for both representations adds to 10% of the client’s total award in the other September 11th-related litigation.

If I was a plaintiff in another September 11th lawsuit, and my attorney signed a release before the bill was enacted and I opt in to that settlement, am I eligible for the VCF?

The rules for the VCF are not yet final.  The Zadroga Act states that if an individual tendered a release after the Zadroga Act was enacted on January 2, 2011, the individual is not eligible for the VCF.  The VCF will address the question of eligibility on a case-by-case basis.   If your attorney had authority to sign a release on your behalf and that release was signed and submitted to the defendant consistent with the terms of the settlement agreement between the claimant and the defendant prior to January 2, 2011, then the release will not bar the VCF claim. 

Where can I find out information about the settlements achieved in New York courts? 

The VCF cannot provide information about private settlements.  The VCF is a government program, established by Congress, and is separate from the lawsuits between individuals and the Port Authority, the Captive Insurer, and others.  Individuals with questions about the settlements should contact their lawyers.

Will settlements in civil suits regarding injuries related to September 11th affect my award in the VCF?

Yes.  The Act provides that the amount of the award shall be reduced by the amount of collateral source compensation that the claimant has received or is entitled to receive as a result of the crashes.  Therefore, settlement payments from law suits will be deducted from any award.

Legal Issues

Is my VCF award taxable?

The awards are not subject to Federal income tax.  In Revenue Ruling 2003-115, the Internal Revenue Service determined that periodic payments made to a claimant of the VCF pursuant to certain agreements are excluded from the gross income of the claimant.  Similarly, any payments to an estate or secondary beneficiary pursuant to such agreements are excluded from the gross income of the successor beneficiary.

Can my VCF award be seized in a bankruptcy proceeding?

How an award is handled in bankruptcy will depend on the facts and circumstances of each individual’s situation.  An attorney may be able to provide more information based on each individual’s particular case.

If I am eligible for the VCF, am I also eligible for veterans benefits?

The VCF is open to certain individuals who suffered personal injuries or death as a result of September 11th, regardless of whether they qualify as veterans.  Individuals with questions about their eligibility for veterans benefits should contact the Veterans Administration.  The Zadroga Act requires the Special Master to apply certain offsets to reduce the amount of compensation by the amount of collateral source compensation that the claimant has received or is entitled to receive as a result of the terrorist related aircraft crashes of September 11th.  Whether veterans benefits will be offset (so that the award is reduced) will depend on the specific benefit (i.e., what the benefit is for and whether it is subject to termination.)

Covered Conditions

General

If I received payment in the VCF’s first iteration, and I am suffering from a new condition that was not known or diagnosed at that time, am I eligible to submit a claim to the VCF now? 

Although the rules for the VCF are not yet final, the VCF’s draft rules, which are available at www.justice.gov/vcf, contemplate that an individual who has suffered a new eligible injury, or whose condition has substantially worsened, resulting in damages or loss that was not previously compensated, may amend his or her claim.  If you would like to submit a comment on the draft rules, you may find instructions on how to do so at www.justice.gov/vcf.

How will the VCF determine if a condition was a result of September 11th? 

The rules for the VCF are not yet final.  The VCF anticipates applying guidelines consistent with those adopted by the World Trade Center (WTC) Health Program.  The WTC Health Program relies on the best available science to determine whether a particular condition is related to September 11th and provides a protocol for doctors to determine whether a particular individual’s condition is a WTC-related health condition.

If I have a condition that was a result of September 11th but is not a common condition, am I eligible for the VCF? 

Yes.  Individuals who suffered injuries as a result of September 11th and who meet the other eligibility requirements may submit a claim, even if their condition is not common across the population. 

Although the rules for the VCF are not yet final, the VCF’s draft rules, which are available at www.justice.gov/vcf, propose that the VCF will post a list of conditions that have been determined to be related to September 11th.  Individuals with other conditions may also be eligible in extraordinary circumstances.  If you would like to submit a comment on the draft rules, you may find instructions on how to do so at www.justice.gov/vcf.

If I have suffered a physical injury as a result of September 11th but am still able to work, am I eligible for the VCF?

Yes.  Individuals who are still able to work may receive compensation for other economic losses they may have suffered, such as medical expenses or for non-economic losses.

I do not see my injury on the list of eligible injuries in the draft regulations.  How will I know if my injury is covered or might be covered in the future? 

In determining which conditions should be covered by the VCF, we intend to work closely with the World Trade Center (WTC) Health Program, which relies on the best available science to determine whether a particular condition is related to September 11th, and provides a protocol for doctors to determine whether a particular individual’s condition is a WTC-related health condition. 

The VCF’s draft rules provide that the VCF will consider modifications to the list of presumptively covered conditions based on the determinations of the WTC Health Program.  The VCF will examine the science to determine whether additional conditions (including specific types of cancer) can be covered.  The VCF’s draft rules also propose that if an individual submits a claim for a condition that is not covered, and that condition later is added to the list, that individual may be eligible for payment. 

Will side effects from taking September 11th-related medications be covered by the VCF?

This may depend on the circumstances of your particular condition.  Although the rules for the VCF and the methodologies for determining awards are not yet final, the Zadroga Act provides for the VCF to base awards on the losses that each claimant has suffered as a direct result of September 11th.  Whether side effects arising out of medications taken to treat a covered condition are themselves directly related to September 11th will depend on the type of condition, the nature of the medication and the side effects, and other factors that may vary from individual to individual.

Cancer

Will cancer be covered by the VCF?

The Zadroga Act did not include cancer in its initial list of conditions that are related to September 11th.  The draft regulations provide that the VCF will consider modifications to the list of presumptively covered conditions based on the determinations of the World Trade Center (WTC) Health Program.  The VCF will examine the science to determine whether additional conditions (including specific types of cancer) can be covered.    The VCF’s draft rules also propose that if an individual submits a claim for a condition that is not covered, and that condition later is added to the list, that individual may be eligible for payment. 

PTSD and Emotional Harm

Will Post-traumatic stress disorder (PTSD) or emotional injuries be covered by the VCF?

 The Zadroga Act provides that only claimants who have a “physical injury” can be eligible for the VCF.  The regulations implementing the original VCF  interpreted that phrase to mean “a physical injury to the body,” thus excluding PTSD. 

In the Zadroga Act, Congress did not change the language defining the eligible injuries and thus did not change the the treatment of PTSD. The Zadroga Act treats PTSD as a mental or psychological condition, not a physical condition.  As a result, the VCF is not able to accept claims for PTSD.

For information about whether you may be eligible for treatment for mental or emotional harms by the World Trade Center Health Program, you may contact them directly by phone at 1-888-WTCHP4U (888-982-4748), or on the web at http://www.cdc.gov/niosh/wtc.

Multiple Conditions

If I have multiple conditions as a result of September 11th, will the VCF cover all of them?

As long as each condition was caused as a direct result of September 11th, the VCF will cover all of the conditions suffered by each eligible claimant.  However, the method for determining compensation will depend on proof of economic loss and a determination of non-economic loss.   The VCF will not provide multiple awards or awards for each condition. 

Funds and Awards

When will I receive my full award?

Under the proposed rules, once a claim is fully submitted and is determined to be substantially complete, the VCF will issue a determination on eligibility and, if appropriate, on compensation.  You will have the right to appeal the determination.  Once you have accepted the award or completed the appeal process, the VCF will issue a payment within 20 days of that date. 

These initial payments will not contain a claimant’s full award.  In order to ensure that there is enough money to make a payment to every claimant who is entitled to receive a payment, the Zadroga Act provides that the first payment to each claimant should contain a portion of the full award.  As a result, the size of that first payment will depend on the amount of the claimant’s full award, as well as the total number of claimants and the amount of money available.  The Zadroga Act provides that most of the available money will be distributed at the end of the program, so in most cases these initial payments will be significantly less than the full award.  Only $875 million will be available to pay claims in the VCF’s first five years.

The Act provides that the remainder of the award may be paid five years after the VCF opens.  Claimants can thus expect to receive the rest of their payment in 2016-17.  Depending on the number and type of claims, and in order to ensure that all eligible claimants receive an award, the Zadroga Act’s cap on funding means that it is possible that those payments will be pro-rated.

Because initial payments will reflect only a portion of the total payment that a claimant can expect to receive, the claimant may wish to consult with a financial planner regarding how to make best use of the payments as they are received.

Will there be a procedure for receiving early payments, or “advance benefits,” as they were known in the first VCF?

The Zadroga Act requires two rounds of payments:  an initial payment to each eligible claimant during the VCF’s first five years, after the claimant’s claim has been reviewed, followed by a second payment in the VCF’s sixth year.  Although the rules for the VCF are not yet final, VCF’s draft rules, which are available at www.justice.gov/vcf, propose to offer only these two payments, and not to add a third, early “advance” payment.  Adding a third round of payments will increase the VCF’s administrative costs, which will result in less money available for claimants.  Further, because the Zadroga Act already provides for two rounds of payments, a third round may be unnecessary.  (If you would like to submit a comment on the draft rules, you may find instructions on how to do so at www.justice.gov/vcf.)

What is economic loss? 

Economic loss is an estimate of the compensation that would have been available to the family if the tragedy had not occurred.  This includes, for example, loss of earnings, medical expense loss, or business opportunity losses.

What is non-economic loss? 

Non-economic losses include losses for physical and emotional pain or suffering, loss of enjoyment of life, mental anguish, and other non-pecuniary losses.

Will I be able to know approximately how much my award will be before I decide whether to submit a claim?

The proposed rules for computing economic loss are set forth in sections 104.41 through 104.47 of the proposed rules.  The VCF intends to provide guidance and illustrations to enable a claimant to evaluate his or her potential award before deciding to submit a claim.    That information will be posted on the VCF website, at www.justice.gov/vcf.

If my career is cut short as a result of a condition that is compensable under the VCF will my award take into account lost wages?

Yes.  The Zadroga Act provides for the VCF to take into account a claimant’s loss of earnings as a result of a physical injury caused by September 11th.

If my career is cut short as a result of a condition that is compensable under the VCF will my award take into account decreased pension benefits as a result of the shorter career?

Yes.  The Zadroga Act provides for the VCF to take into account a claimant’s loss of earnings and other benefits related to employment.

Will the amount of awards be the same as in the VCF’s first iteration, or will they be reduced?

The methodologies for computing economic loss will be based on those from the original VCF, with certain components of the economic loss computation updated.  The VCF will publish guidance on these computations.  The amount that each claimant will receive will depend on the amount of economic loss (if any), the non-economic loss, the offsets applied and the number of claimants and the aggregate amount of eligible awards.  In the Zadroga Act, Congress appropriated $2.775 billion to pay all of the awards, which means that the VCF cannot pay out any more than that amount.  This means that if the aggregate amount of awards and administrative costs exceeds this capped amount, the awards will have to be reduced.  The VCF cannot determine whether such a reduction will be necessary until it receives and evaluates all the claims. 

What is a collateral source?  How will the Special Master determine the amount of my collateral source benefits?

The Act defines collateral sources to mean all such sources, including life insurance, pension funds, death benefit programs and payments by Federal, State, or local governments related to the terrorist-related aircraft crashes of September 11, 2001 or debris removal, including under the World Trade Center Health Program and payments made pursuant to the settlement of a civil action for damages sustained as a result of the terrorist-related aircraft crashes of September 11, 2001 or debris removal. The Act and the draft regulations require the Special Master to reduce the total amount of compensation by the amount of the collateral source compensation the victim’s beneficiaries has received or is entitled to receive as a result of the terrorist-related aircraft crashes.

During the previous iteration of the Fund, Special Master exercised discretion in valuing the appropriate deductions for collateral offsets including by determining:

1. Whether the particular offsets fall within the definition of collateral sources;
2. Whether beneficiaries of the Fund are “entitled” to receive compensation from those collateral sources;
3. Whether the collateral source compensation is certain or can be computed with sufficient certainty to enable its deduction while ensuring that the beneficiaries receive the total compensation that is appropriate; and
4. The appropriate amount of the compensation that should be deducted, taking into account the time value of money and contributions made before death by the victim in the nature of investment or savings.

Under the proposed rules, the Special Master would be permitted to exercise discretion in a similar fashion.

Are charitable gifts offset? Will a benefit from a charity managed by a government agency be considered as a collateral offset?

The proposed rules adopt the approach taken previously, which is that benefits from charities disbursing private donations will not be treated as collateral source compensation, even if such charities were created or managed by government entities.

Victim Compensation Fund Special Master Sheila Birnbaum Wins Hearts and Minds of 9/11 Victims at Town Hall Meeting

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Even the most skeptical New Yorker would have had a hard time not being impressed by Zadroga Act Special Master Sheila Birnbaum at a Town Hall Meeting  sponsored by the FealGood Foundation in New York City last week.  She had just the right touch for an assembled audience of 9/11 victims with serious and/or disabling health problems.

As a life-time New Yorker from the Bronx, she immediately connected with the over-flowing crowd. In a very straight forward manner she described her role as Special Master of the Fund and the potential limitations of the new Zadroga Act (more claimants than the first Victim Compensation Fund (VCF) and less money this time around).   In addition, only $875 million can be distributed to claimants in the first five years of the Fund, with the remaining almost $2 billion to be distributed in the sixth year. Therefore, all individual financial awards are likely to be split into two "chunks", with the largest chunk coming in the sixth year.

Finally, Ms. Birnbaum directly addressed the difficult issue of whether there was enough total money ($2.8 billion) in the 9/11 Victim Compensation Fund to fully compensate all claimants at similar levels as the first Victim Compensation Fund.  It seems that she does not believe there is enough money at this time and that full awards will need to be pro-rated (that's where fine organizations like the FealGood Foundation will come in to lobby Congress for any needed additional funds).

Ms. Birnbaum deftly handled all the audience questions. She looked claimants in the eye and did not over-promise.  She explained difficult concepts of damages in plain language, while always assuring the claimants that the process would be fair and transparent.  She was part therapist, part skilled litigator, part hometown hero and most of all - a friend and advocate for  victims.  No wonder her remarks were met with applause throughout the evening.  As I commented in my live Twitter Feed that evening, she "wowed" them.

We wish Ms. Birnbaum the best of luck in her challenging new assignment. From what we saw at the meeting last week, 9/11 victims have a true friend in Ms. Birnbaum.

9/11 Zadroga Act Claims Free Webinar: What You Need to Know About the Victim Compensation Fund

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Join us for a Free Zadroga Act Webinar on March 26

Register Now

Space is limited.
Reserve your Webinar seat now at:
https://www3.gotomeeting.com/register/330686110

Did you (or a family member) participate in the rescue, recovery or cleanup activities at Ground Zero? Are you now ill from breathing and ingesting toxic dust and fumes at the World Trade Center site? If so, you may be entitled to a financial award from the recently reopened federal Victim Compensation Fund in the Zadroga 9/11 Act.

Join experienced New York 9/11 Victim Compensation Fund (VCF) attorneys Troy G. Rosasco and Daniel J. Hansen for a fact filled webinar discussing the new Zadroga Act. Subjects covered will include:

  • Who is Eligibile?
  • What Illnesses are Covered?
  • How Do You File a Claim?
  • What is Needed to Prove Your "Damages", including "pain and suffering"?
  • Who is the "Special Master"?, How Much Money Can You Expect to Receive?
  • Can You File if You Already Collected Money from the Old VCF or other Lawsuits?
  • How Long Will the Claims Process Take?

Join us for this lively, interactive Webinar (online seminar) to get the answers you (and your loved ones) need to protect yourself and get the financial compensation you deserve. You can participate either through your computer or our special Toll Free telephone number.

Title: 9/11 Zadroga Act Claims : What You Need to Know About the Victim Compensation Fund 

Date: Saturday, March 26, 2011

Time: 12:00 PM - 2:00 PM EDT

After registering you will receive a confirmation email containing information about joining the Webinar.

System Requirements
PC-based attendees
Required: Windows® 7, Vista, XP or 2003 Server
Macintosh®-based attendees
Required: Mac OS® X 10.4.11 (Tiger®) or newer

Facts About 9/11 Victims Compensation Under The Zadroga Act

Facts About 9/11 Victims Compensation Under The Zadroga ActWhat is the Zadroga 9/11 Victims Compensation Fund?

On January 2, 2011, President Obama signed the James Zadroga 9/11 Health and Compensation Act of 2010. James Zadroga was a NYPD Detective who died from inhaling toxic dust while working at Ground Zero. He inspired Congressional passage of federal funds that would provide for healthcare and compensation benefits to those who became sick or died as a result of exposure to Ground Zero toxins.

Who’s Eligible to File a Claim?

How Do I File a Claim?

Find out the answers to these questions by downloading our brochure.

If you have questions, please call us toll free at 1-855-WTC-INFO and visit our Victims Compensation Fund Information website at www.zadrogaclaimsinfo.com.

Zadroga 9/11 Act Information Videos for Victims and Survivors

 

 ZadrogaClaimsInfo.com is pleased to announce a new series of Internet videos produced by our attorneys explaining the Zadroga Act and  the 9/11 Victim Compensation Fund. These videos are intended to give victims and survivors of the 9/11 World Trade Center tragedy more helpful information, insight and commentary about their rights under the Zadroga Act and the 9/11 Victim Compensation Fund.

You may watch these videos either on our own new Disability and Compensation Claims Video Channel  or on our new You Tube Disability and Compensation Claims Channel. Our first series of six Zadroga Act videos cover such topics as :

  1. Overview of the James Zadroga 9/11 Health and Compensation Act of 2010
  2. What are the Most Common Medical Conditions in 9/11 WTC Victim Compensation Fund (VCF) claims?
  3. Are you eligible to file a Zadroga 9/11 WTC Victim Compensation Fund claim?
  4. Can you file a claim with the Victim Compensation Fund if you participated in a prior 9/11 lawsuit?
  5. How do I File a 9/11 WTC Victim Compensation Fund Claim?
  6. How do I Choose the Right Zadroga Act Victim Compensation Fund Lawyer?

We will be adding new videos shortly as new information about the Zadroga Act  becomes available. Once President Obama appoints the 9/11 Victim Compensation Fund Special Master who will administer the Fund, hopefully in the next few weeks, we will be posting new videos on the updated regulations and procedures for filing claims. Please let us know which Zadroga 9/11 Act topics you would like to see new videos on and we will try and produce them as soon as possible.

As we previously posted here, we will be attending the Zadroga Act Public Informational Meeting on medical benefits this Thursday, March 3rd, in lower Manhattan. We will be blogging live on Twitter from that meeting to give you the latest news and analysis which you will be able to follow at our Twitter Feed on the right hand side of this site. Talk to you then!

 

Zadroga 9/11 Act Questions and Answers from Congresswoman Carolyn Maloney

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Congresswoman Carolyn Maloney, and her top-flight office staff, provided a wealth of helpful information today on the Zadroga Act as interpreted by the reputable and unbiased Congressional Research Service (CRS).

Some teachers leave for home at the end of the last period of the day. Some stay late to give extra help to their students. If Congresswoman Maloney were a teacher, she would be staying late to benefit her pupils. She is a real professional and is showing it once again, to the benefit of all 9/11 victims.  

How Much Can Zadroga Act Lawyers Charge in WTC Victim Compensation Fund Claims if I Settled a Prior 9/11 Lawsuit?

A  large number of construction workers and first responders (over 10,000) were part of the recently settled 9/11 World Trade Center lawsuits against the City of New York and others for injuries suffered in the massive clean-up and recovery efforts related to their work on the Ground Zero site or what has been called "the pile."  The Daily News and the New York Post have reported a number of controversial issues related to these 9/11 World Trade Center lawsuits, including some attorneys trying to pass along to their clients over $6,000,000.00 in interest on the money borrowed by the law firms. A federal Judge denied this unusual request. 

Putting aside those problems involving the settled lawsuit, one a important big question remains: What attorney's fee amount can be properly charged by a lawyer representing a 9/11 first responder, construction worker or clean-up worker who also now wants to file a claim under the 9/11 Victims Compensation Fund?   

The answer to this important question can be found in the Zadroga 9/11 Compensation Act.  First, for an individual who has not settled a prior claim or lawsuit, the maximum fee that may be charged by the lawyer is 10 percent.  For an individual who was a part of the recently settled lawsuit, the maximum attorney's fee is 10 percent of the total of the lawsuit settlement plus the amount awarded by the WTC Victim Compensation Fund minus  "the total amount of all legal fees charged for services rendered in connection with such settlement." 

In other words, under the Zadroga Act, individuals who settled their lawsuit who also file a WTC Victims Compensation Fund claim will never pay more than a 10 percent attorney's fee on all amounts received (the total received from the settled lawsuit plus the amount awarded by the Fund).  

Another question raised is whether an injured person who had a lawsuit has the right to choose a new attorney to file a claim under the Victims Compensation Fund?   The answer is YES! 

Injured workers and volunteers who where part of the settled lawsuit have the absolute right to have a new lawyer represent them to file a claim under the Victims Compensation Fund. The claimant will still pay the same 10 percent attorney's fee, while having the benefit of a new attorney giving a "fresh look" at the claimant's injuries without any increased attorney's fee or cost.   

The final question is whether it is difficult to switch to a new attorney to file a claim under the Victims Compensation Fund? The answer is "NO".

An injured worker who wants a new attorney to help maximize a claim under the Victims Compensation Act needs only to sign a one page form.  The new lawyer will obtain all of the medical records from the prior attorney (all medical records are the property of the client), with no need for the injured worker to get any records or even have any contact with the old lawyer

 

Can I file a Zadroga compensation claim if I was part of the recent 9/11 lawsuit against New York City, the Port Authority and others?

Yes. However, there are significant limitations for those who have either “pending” or “settled” civil action. These limitations, and potential strategies to maximize any recovery under the Zadroga Act, should be discussed with an attorney. The limitations in the statute are detailed below:

(f) Limitations on Civil Actions-

(1) APPLICATION TO DAMAGES RELATED TO DEBRIS REMOVAL- Clause (i) of section 405(c)(3)(C) of such Act, as redesignated by subsection (c), is amended by inserting `, or for damages arising from or related to debris removal' after `September 11, 2001'.

(2) PENDING ACTIONS- Clause (ii) of such section, as so redesignated, is amended to read as follows:

`(ii) PENDING ACTIONS- In the case of an individual who is a party to a civil action described in clause (i), such individual may not submit a claim under this title--

`(I) during the period described in subsection (a)(3)(A) unless such individual withdraws from such action by the date that is 90 days after the date on which regulations are promulgated under section 407(a); and

`(II) during the period described in subsection (a)(3)(B) unless such individual withdraws from such action by the date that is 90 days after the date on which the regulations are updated under section 407(b).'.

(3) SETTLED ACTIONS- Such section, as so redesignated, is further amended by adding at the end the following new clause:

`(iii) SETTLED ACTIONS- In the case of an individual who settled a civil action described in clause (i), such individual may not submit a claim under this title unless such action was commenced after December 22, 2003, and a release of all claims in such action was tendered prior to the date on which the James Zadroga 9/11 Health and Compensation Act of 2010 was enacted.'.

 

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Turley Hansen and Partners, LLP, is pleased to offer Zadroga Claims Info as a public resource for information on the compensation and health benefits available under the James Zadroga 9/11 Health and Compensation Act of 2010. Authored by a team of experienced attorneys...

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