W000651
Monday, November 26, 2001 4:16 PM
September 11th Victim Compensation Fund of 2001
Mr. Kenneth L. Zwick, Director
Office of Management Programs
Civil Division
U.S. Department of Justice
Main Building, Room 3140
950 Pennsylvania Avenue
Washington, D.C. 20530
Dear Mr. Zwick,
I think the idea of the September 11th Victim Compensation Fund of 2001
(Fund) for the victims and victims' families (collectively referred to as
"the victims") of the September 11th tragedies is wonderful. While it will
clearly provide benefit to our troubled airline industry in terms of
minimizing litigation, it also has the potential to provide much needed
financial assistance to the victims in what I hope will be a simple and fair
process.
While monitoring the events over the past six weeks as they pertain to this
Fund as well as to some of the charitable funds which were created to assist
the victims, I find some of my greatest fears becoming reality -- first the
debacle over the Red Cross funds and now the politicization of the Fund.
Realizing the impact the Fund will have on the lives of the victims and the
emotional nature of why the Fund is necessary, I can not say that I am
surprised by this turn of events. While no answer will please everyone, I
urge you to consider the following when deciding how distributions from the
Fund should be made to the victims:
Provide a simple, understandable formula to determine the benefits which
will be distributed to each victim. The formula should consist of two basic
components: 1) one for the loss of life or serious injury of a person, and
2) for lost income. I think it is essential that both these components be
considered and recognized. Our value system demands that we recognize
equally the loss of a loved one -- to say one person's life is more valuable
to his/her loved ones than another persons' clearly goes against our
society's belief system. In recognition of this, each victim should receive
a standard amount acknowledging their loss. This component is necessary in
order for the Fund's distributions to be accepted by the American public.
However, like it or not, the victim's loss of income should not be ignored.
While the first component represents the emotional loss, this component
represents the economic loss and must be recognized. This portion will be
in most cases a larger amount because it needs to reflect the earnings
capacity of the victim and take into consideration the victims' ages,
average retirement age for their industry/ position, his or her current and
future salaries, bonuses, benefits, etc. This component is necessary in
order for it to be accepted by the victims, which will ultimately determine
whether it will minimize the quantity and size of lawsuits to be filed
against the various possible defendents.
Do not reduce the amount of any distribution by charitable contributions
received. It is my understanding that the distributions being made by the
various charities are for short term relief and are being based on need.
The purpose of the Fund should be for long-term financial security and
losses incurred. The two should not be confused. Nor should it be
forgotten that if the victims were to proceed with litigation, awards would
not be based on "need," but rather economic damages plus pain and suffering.
Do not reduce the amount of any distribution by insurance payments received.
Insurance premiums are paid with after tax dollars and are usually based on
each individual's salary so that most individuals receive a similar
benefit/cost structure. Additionally, life insurance is optional. Those
who paid for these policies should not be penalized because they were
willing to forgo short-term income in order to protect their loved one's
long-term financial future.
Do not reduce a survivor's right to appeal through use of an approved or
designated mediator. Each claimant should retain the right to abandon the
process until such time that a settlement is reached. This right is typical
in most litigation.
Do not tax the distributions. What is the point of taking taxpayers' money,
distributing it to those who have suffered losses and then taxing the awards
and returning the money to the treasury? Keep it simple. Keep it one step.
Determine and execute swiftly. This is a very trying time, both financially
and emotionally. The longer this process takes, the more politicized and
complicated the process will become. Do what is fair and what is right . .
. and do it quickly.
This is a great opportunity to show our nation and the world who we are. Do
not let this great idea become marred in red tape and politics. Honor the
victims by doing what is right, while also preserving our airline industry.
Individual Comment
Houston, TX