Judge rules insurers must pay WTC legal costs
–31 March 2008
In a ruling by New York Judge Alvin K. Hellerstein, insurance companies for the City of New York are responsible for legal costs associated with defending the city in World Trade Center cases. A $1bn captive insurance fund was set up by the federal government to pay claims, but that money was being used to pay for legal costs as well. The city has had legal expenses of $100m.
Plaintiffs lawyer Paul Napoli Jr. has headed a campaign to force the insurance fund to begin making payments to claimants, but lawyers for the city say he and his co-counsel have refused to recognise any cap on liability in the action and have misrepresented the fund as a "pot of money" just waiting to be distributed.
Napoli, other plaintiffs attorneys and members of Congress have criticised the city for using the funds to pay large legal bills rather than compensating 9/11 responders who have incurred respiratory and other health problems as a result of work at the World Trade Center site.
New York City has also been denied immunity from lawsuits by the 2nd U.S. Circuit Court of Appeals. Thousands of people have fallen ill since the World Trade Center attacks in 2001. It is believed that toxic fumes and substances from the buildings collapsing filled the air and were inhaled by people who responded to the scene.
Workers comp plan for CTBA member farms announced
The California Thoroughbred Breeders Association (CTBA) is teaming up with MOC Insurance Services/Maroevich, O’Shea, & Coghlan to form a program designed to lower workers compensation costs for CTBA member farms.
John Unick, president of MOC’s Thoroughbred racing division, previously brokered a deal in 2002 that led to a formation of an industry-owned captive insurance model known as the California Horsemen’s Safety Alliance (CHSA). The CHSA’s risk management approach greatly reduced California’s workers compensation premiums.
“Our formula for success is very straight forward. We commit ourselves to the nuances of the many different aspects of the Thoroughbred racing industry before we launch extensively researched programs,” Unick said. “We have been working closely with the CTBA for several years and we are confident we have chosen the right carrier and risk approach.”
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