The September 11th Victim Compensation Fund was created by an Act of Congress, the Air Transportation Safety and System Stabilization Act (49 USC 40101), shortly after 9/11 to compensate the victims of the attack (or their families) in exchange for their agreement not to sue the airline corporations involved. Kenneth Feinberg was appointed by Attorney General John Ashcroft to be Special Master of the fund. He worked for 33 months pro bono. He developed the regulations governing the administration of the fund and administered all aspects of the program.
Feinberg was responsible for making the decisions on how much each family of a victim would receive. Feinberg had to estimate how much each victim would have earned in a full lifetime. If a family accepted the offer, it was not possible to appeal. Families unhappy with the offer were able to appeal in a nonadversarial,Official Fund website (archived) informal hearing to present their case however they wanted. Feinberg personally presided over more than 900 of the 1,600 hearings. At the end of the process $7 billion was awarded to 97% of the families; the average payout was $1.8 million. A non-negotiable clause in the acceptance papers for the settlements was that the families were to never file suit against the airlines for any lack of security or otherwise unsafe procedures.
A stumbling block to settlements was the fact that many of the World Trade Center victims were highly compensated financial professionals. Families of these victims felt the compensation offers were too low, and, had a court considered their case on an individual basis, they would have been awarded much higher amounts. This concern had to be balanced against the time, complications, and risks of pursuing an individual case, and the real possibility that the airlines and their insurers could be bankrupted before being able to pay the claim.
This is a separate fund from the similarly named September 11th Fund, and from the World Trade Center Captive Insurance Company.
Famous quotes containing the words september, victim, compensation and/or fund:
“April is in my mistress’ face,
And July in her eyes hath place,
Within her bosom is September,
But in her heart a cold December.”
—Unknown. Subject #4: July Subject #5: September Subject #6: December. All Seasons in One. . .
Oxford Book of Sixteenth Century Verse, The. E. K. Chambers, comp. (1932)
“The figure of the gunman in the window was inextricable from the victim and his history. This sustained Oswald in his cell. It gave him what he needed to live. The more time he spent in a cell, the stronger he would get. Everybody knew who he was now.”
—Don Delillo (b. 1926)
“I do not want to be covetous, but I think I speak the minds of many a wife and mother when I say I would willingly work as hard as possible all day and all night, if I might be sure of a small profit, but have worked hard for twenty-five years and have never known what it was to receive a financial compensation and to have what was really my own.”
—Emma Watrous, U.S. inventor. As quoted in Feminine Ingenuity, ch. 8, by Anne L. MacDonald (1992)
“I am advised that there is an unexpended balance of about $45,000 of the fund appropriated for the relief of the sufferers by flood upon the Mississippi River and its tributaries, and I recommend that authority be given to use this fund to meet the most urgent necessities of the poorer people in Oklahoma.”
—Benjamin Harrison (1833–1901)