N002037

Friday, January 18, 2002 4:33 PM

January 18, 2002

Re: The Interim Final Rule of the September 11th Victim Compensation Fund of 2001

I am writing to ask for your help to correct the inequities contained in the Department of Justices interim final rule for the September 11th Victim Compensation Fund of 2001. The pain my family has experienced in this tragedy is difficult to communicate. The loss of my husband is devastating. I would exchange all compensation to bring          back. The interim final rule increases the already intense pain to an even higher level. I ask you to help bring some fairness and balance to our lives. Please give us a reason to participate in the Fund. Please adjust the interim final rule to provide economic and noneconomic amounts at fair, balanced and acceptable levels. Please establish a fair appeal process. Please preserve workers compensation payments for surviving victims. Finally, please include the specific calculation formulas, statistics and assumptions within the rule or the explanatory materials.

The Interim Final Rule provides little incentive to participate in the Fund because it seriously understates our losses and undervalues the compensation for those losses. Consequently, the Interim Final Rule will defeat the intent of Public Law 10742.

When Congress passed the Air Transportation Safety And System Stabilization Act on September 22, 2001, it severely restricted our right to sue the airlines, which bear responsibility for our loved ones deaths because of lax security procedures. In exchange for denying Family Members this right, they provided the September 11th Victim Compensation Fund of 2001. The Fund is supposed to compensate the victims' families for the types of losses that would have been recoverable in a lawsuit. This includes economic losses, such as lost income, and non-economic losses.

Non economic losses described in the law are very broad and inclusive. They are described as losses for: physical and emotional pain, suffering, inconvenience, physical impairment, mental anguish, disfigurement, loss of enjoyment of life, loss of society and companionship, loss of consortium, hedonic damages, injury to reputation, and all other nonpecuniary losses of any kind or nature. The Interim Rule/Regulation also describes the intention of the law:

The Fund is designed to provide a no-fault alternative to tort litigation for individuals who were physically injured or killed as a result of the aircraft hijackings and crashes on September 11, 2001 {Interim Rule/Regulation, Summary Paragraph A.1.}.

The attached regulations have two objectives: (1) To provide fair, predictable and consistent compensation to the victims of September 11 and their families throughout the life of the program; and (2) to do so in an expedited, efficient manner without unnecessary bureaucracy and needless demands on the victims. {Interim Rule/Regulation, Supplementary Information.}.

The Interim Final Rule issued by the Department of Justice (DOJ) falls far short of these stated goals and does not comply with the statute passed by Congress.:

a) Under the Interim Final Rule, noneconomic losses are limited to $250,000 for my husband and $50,000 for children and a spouse. My family would receive only one-tenth the amount of noneconomic losses recovered in other air crash and terrorism cases, which commonly result in awards well into the seven-figure range.

b) The Interim Final Rule understates economic losses in two ways: It caps the salaries of high-income victims and underestimates the lifetime earning potential of victims at all income levels. Independent economists have shown the interim final rule uses outdated and inapplicable work-life and life-cycle earnings data to underestimate promotions and pay increases and consequently provides low estimates of our loved ones future earnings.

Because the initial award amounts are so low, many families will receive little compensation from the Fund after the collateral payment deductions have been subtracted. There will be little reason to participate.

To compound the unfairness, my family would have little real opportunity to appeal the determination of the Fund Master. A familys award may be increased above the presumptive award only by showing extraordinary circumstances beyond those suffered by other victims or victims families. This makes the hearing or appeal to the Special Master extremely arbitrary, unclear and unfair.

In addition the proposed compensation to the spouses, children and other innocent victims of the attacks is out of balance when compared to the generous compensation to the airlines. Not only did the law cap the airlines liability at the limits of their insurance (which saves the airlines billions of dollars), but it also provides for direct cash payments and loan guarantees to the airlines totaling $15 billion. The underpayments to the spouses, children and other loved ones suffering from this attack will shift the cost of these airline subsidies and liability limits to the innocent victims of the attacks.

Please correct the inequity. Please give us a reason to participate in the Fund. Please adjust the interim final rule to provide economic and noneconomic amounts at fair, balanced and acceptable levels. Please establish a fair appeal process. Please preserve workers compensation payments for surviving victims. Finally, please include the specific calculation formulas, statistics and assumptions within the rule or the explanatory materials.

Individual Comment


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