ALVIN K. HELLERSTEIN, District Judge:
This order accepts two final reports of the Allocation Neutral, Matthew Garretson and the Garretson Resolution Group, Inc. (collectively, "Garretson"), substantially completing the administrations of the mass settlements approved by this court. I order that the two final reports be filed, and posted with this order on the Court web page. The details follow:
The aggregate amount of all these settlements is $720.8 million, exclusive of adjustment, bonus increases, and contingent payment increases, discussed later.
The administration of these settlements, and the remittance of funds to the settling plaintiffs under each of the settlements substantially has been completed, in compressed time, transparently, without appreciable rancor or dispute, and to the satisfaction of those benefiting from the settlements. The Final Reports of the Allocation Neutral are attached to this order and shall be posted on the court's website.
As to the City of New York and the contractors it engaged to clear the World Trade Center debris arising from the terrorist-related crashes of September 11, 2001 and as reflected in the Allocation Neutral's Final Report, the Allocation Neutral processed a total of 10,112 claims against these defendants, and disbursed a total of $612,561,759.69 paid by the WTC Captive.
As I found when I approved it, the settlement with New York City and its contractors, although not perfect, is fair and reasonable.
The Tier IV plaintiffs also will be eligible under the settlement agreement for Bonus Payments because of the very high percentage of plaintiffs who approved, and participated in, the settlement. By my order of December 20, 2011, I ordered these to be paid, in the amount of $55 million.
SO ORDERED.
IN RE WORLD TRADE CENTER DSASTER LITIGATION
IN RE LOWER MANHATTAN DISATER SITE LITIGATION
IN RE COMBINED WORLD TRADE CENTER AND LOWER MANHATTAN DISASTER SITE LITIGATION
21 MC 100(AKH)
21 MC 102(AKH)
21 MC 103(AKH)
As supplement to the Final Payment Report regarding payments made pursuant to the World Trade Center Litigation Settlement Process Agreement, As Amended, ("Settlement Process Agreement") the Allocation Neutral submits this final status report regarding payments made in the Fresh Kills and Port Authority Settlements.
The defendants participating in the Fresh Kills settlement include Philips and Jordan, Inc., Evans Environmental and Geological Science and Management, and Taylor Recycling Facility LLC.
1,859 plaintiffs opted-in to the Fresh Kills settlement and completed the claims submission process. (See Exhibit 1).
The Allocation Neutral completed all Claim submission, Work Verification and Medical reviews in accordance with the settlement agreement and began issuing payment instructions in July of 2011. The Allocation Neutral completed the final payment instruction on April 25, 2012.
The distribution of settlement proceeds was as follows:
Tier-1: $ 1,184,265.00 Tier-2: $ 1,854,903.75 Tier-3: $ 1,287,948.75 Tier-4: $ 19,683,730.22 Total: $ 24,010,847.72
8,587 of 8,910 eligible plaintiffs opted-in to the Port Authority Settlement Agreement. (See Exhibit 2). The original settlement amount agreed to by the parties was $47.5 million with approximately $500,000 dedicated to offset the amount the WTC Captive agreed to pay for the administration of the Settlement Process Agreement.
Since only 8,587 of the 8,910 eligible plaintiffs opted to participate in the Port Authority Settlement, the Port Authority adjusted the final settlement amount pursuant to Section II.C of the agreement, resulting in final distribution of $46,143,350.99.
The Allocation Neutral completed all Claim submission, Work Verification and Medical reviews in accordance with the settlement agreement and began issuing payment instructions in September of 2011. The Allocation Neutral completed the final payment instruction on March 23, 2012.
The distribution of settlement proceeds was as follows:
Tier-1: $ 4,047,230.00 Tier-2: $ 3,783,712.50 Tier-3: $ 1,902,480.00
Tier-4: $36,409,928.49 Total: $46,143,350.99
Exhibits 1 and 2 contain detailed information regarding payments made in each of the above-referenced settlements.
Fresh Kills Opt-In 1,859 Total Participating 1,859 Claim Submission # complete submitted claims 1,859 # claims yet to be complete 0 % completion 100.0% Opt-In total 1,859 Work Verification # complete WV submitted 1,859 # WV yet to be complete 0 % completion 100.0% Opt-In total 1,859 Medical Review Plaintiffs' requiring review 11 Medical reviews pending 0 Medical reviews deficient 0 Medical reviews complete 11 % completion 100.0%
Payment Information Primary Plaintiffs Derivative Plaintiffs Payments Made Payments Made Tier 1 Payments Issue Date Wave 1 7/18/2011 363 176 Wave 2 3/28/2012 24 17 Totals To Date 387 193 Tier 2 Payments Issue Date Wave 1 7/18/2011 321 190 Wave 2 3/28/2012 25 19 Totals To Date 346 209 Tier 3 Payments Issue Date Wave 1 7/18/2011 127 76 Wave 2 3/28/2012 26 13 Totals To Date 153 89
Tier 4--Final Distribution Issue Date Final 3/28/2012 973 595 Final--Remaining Balance Allocation 4/25/2012 529 324 Totals To Date 1,502 919 * * * *Grand Totals To Date 2,388 1,410
Port Authority Opt-In 8,587 Total Participating 8,587 Claim Submission # complete submitted claims 8,587 # claims with deficiencies 0 % completion 100.0% Opt-In total 8,587 Work Verification # complete WV submitted 8,587 # WV claims with deficiencies 0 % completion 100.0% Opt-In total 8,587 Medical Review Plaintiffs' requiring review 53 Medical reviews pending 0 Medical reviews deficient 0 Medical reviews complete 53 % completion 100.0%
Payment Information Primary Plaintiffs Derivative Plaintiffs Payments Made Payments Made Tier 1 Payments Issue Date Wave 1 9/30/2011 1,592 753 Wave 2 10/10/2011 0 0 Wave 3 11/16/2011 338 142 Wave 4 2/6/2012 57 41 Wave 5 3/23/2012 2 53 Totals To Date 1,989 989 Tier 2 Payments Issue Date Wave 1 9/30/2011 1,204 693 Wave 2 10/10/2011 21 13 Wave 3 11/16/2011 221 104 Wave 4 2/6/2012 31 21
Wave 5 3/23/2012 6 40 Totals To Date 1,483 871 Tier 3 Payments Issue Date Wave 1 9/30/2011 459 264 Wave 2 10/10/2011 63 41 Wave 3 11/16/2011 80 42 Wave 4 2/6/2012 16 16 Wave 5 3/23/2012 3 13 Totals To Date 621 376 Tier 4--Interim Payment Issue Date Wave 1 9/30/2011 0 0 Wave 2 10/10/2011 3,346 2,344 Wave 3 11/16/2011 802 435 Wave 4 2/6/2012 287 183 Totals To Date 4,435 2,962 Tier 4--Final Distribution Issue Date Tier 4 Final 3/23/2012 4,494 2,741 Totals To Date 4,494 2,741 * * * *Grand Totals To Date 13,022 7,939
The Allocation Neutral respectfully submits this final report regarding payments made pursuant to the World Trade Center Litigation Settlement Process Agreement, As Amended ("Settlement Process Agreement"). Exhibit 1 summarizes the payment information contained in this report. The Exhibit was originally submitted in the "PAYMENT STATUS REPORT FROM THE ALLOCATION NEUTRAL" dated March 9, 2011 ("March 9th Report"), and was subsequently updated and submitted to the Court in April, May, July, August, and November 2011, as well as January 2012. This narrative supplements Exhibit 1 and all previous reports. For the Court's convenience, capitalized terms not defined herein shall have the meaning ascribed to them in the Settlement Process Agreement.
The Allocation Neutral is pleased to inform the Court that the Allocation Process is complete. Through the tireless effort of all involved, the objective was accomplished: to execute a "state-of-the-art" settlement program and to complete Final Distributions within approximately one year of the Final Settlement Agreement Effective Date.
Perhaps more significant than the speed in which this program was completed is the volume of work processed over the course of the past 10 months since the
Tier 1 • Initial $ 7,133,750 &bull Permanent Disability $ 83,199.22 • Marine $ 430,000.00 Total $ 7,646,949.22Tier 2 • Initial $ 5,353,920.00 • Accelerated $ 6,551,281.70 • Mixed Orthopedic $ 66,500.00 • Permanent Disability $ 721,059.91 • Marine $ 768,700.00 Total $ 13,461,461.61Tier 3 • Initial $ 2,315,430.00 • Accelerated $ 5,088,020.63 • Mixed Orthopedic $ 18,500.00 • Permanent Disability $ 1,017,803.77 • Marine $ 462,000.00 Total $ 8,901,754.40Tier 4 • Initial $ 18,301,107.50 • Interim $201,267,855.93 • Mixed Orthopedic $ 448,000.00 • Qualifying Surgery $ 6,090,000.00 • Permanent Disability $ 62,078,648.63 • Marine $ 25,860,947.64 • Final Distribution $291,345,651.54 Total $605,457,157.93 GRAND TOTAL $635,402,376.47
Moreover, this work was completed in a transparent, objective manner consistent with the Settlement Process Agreement.
The Allocation Neutral issued the first Initial Payment Instruction Report to the WTC Captive on January 27, 2011. Further Initial Payment Instructions were issued in 45 subsequent Payment Instruction Reports through January 27, 2012. From. January 27, 2011 through January 27, 2012, 10,007 Primary Plaintiffs and 5,397 Derivative Plaintiffs appeared on Payment Instruction Reports issued by the Allocation Neutral to the WTC Captive.
Throughout the payment process, the WTC Captive was diligent and exceptionally prompt in processing Payment Instruction Reports from the Allocation Neutral.
The Allocation Neutral completed prepayment expense audits on 455 randomly selected Plaintiffs as required by the Settlement Process Agreement (See March 9th Report at 7-8).
As noted in the previous Status Reports to the Court, the Allocation Neutral completed Random Audits (reviewing the medical records of more than 300 randomly selected Plaintiffs). Based on the results of the Random Audit process, the Allocation Neutral did not conduct Targeted Audits.
A total of 342 Appeals were submitted to the Claims Appeal Neutral. The Claims Appeal Neutral's determination with respect to all Appeals was final, binding and not subject to further appeal. The Claims Appeal Neutral completed the review and resolution of Appeals thoroughly and extremely promptly. Once the Claims Appeal Neutral rendered a decision, the Allocation Neutral processed payment due, if any, accordingly.
As expected in any settlement program of this magnitude, there are a few remaining items that will require the Allocation Neutral's assistance to conclude, including ensuring availability of the WTC Web Portal for the uploading of structured settlement documents, completing reconciliation,
Finally, the Allocation Neutral would like to thank all those involved in the process and procedures outlined herein: the heroic first responders to the 9/11 tragedies and the other settling plaintiffs, the City and contractors that managed the rescue, recovery and debris-removal effort, the WTC Captive Insurance Company, the parties' attorneys, the participating government agencies and other healthcare agencies that waived their reimbursement interests ("liens") related to payments made to the plaintiffs, the Claims Appeal Neutral and certainly this honorable Court. Without the collective support, diligence and dedication of all involved, these results would not have been possible. It has been a terrific honor to serve the people and the process.
PAYMENT INFORMATION Primary Plaintiffs Derivative Plaintiffs Payments Made Payments Made Initial Payments Issue Date
Wave 1 1/27/2011 1,548 625 Wave 2 2/2/2011 1,638 926 Wave 3 2/14/2011 1,739 959 Wave 4 3/8/2011 1,799 1,006 Wave 5 3/10/2011 1,102 590 Wave 6 3/16/2011 614 321 Wave 7 3/23/2011 588 350 Wave 8 3/30/2011 466 256 Wave 9 4/6/2011 129 65 Wave 10 4/13/2011 52 25 Wave 11 4/20/2011 59 41 Wave 12 4/27/2011 32 17 Wave 13 5/4/2011 90 79 Wave 14 5/11/2011 40 47 Wave 15 5/18/2011 22 26 Wave 16 5/25/2011 1 2 Wave 17 6/1/2011 6 2 Wave 18 6/8/2011 1 0 Wave 19 6/15/2011 0 3 Wave 20 6/22/2011 2 1 Wave 21 6/30/2011 0 0 Wave 22 7/6/2011 0 0 Wave 23 7/14/2011 2 2 Wave 24 7/22/2011 2 1 Wave 25 7/27/2011 1 1 Wave 26 8/3/2011 1 0 Wave 27 8/10/2011 1 1 Wave 28 8/17/2011 1 0 Wave 29 8/24/2011 4 3 Wave 30 9/1/2011 0 0 Wave 31 9/7/2011 5 3 Wave 32 9/14/2011 0 0 Wave 33 9/21/2011 1 2 Wave 34 9/28/2011 1 1 Wave 35 10/5/2011 1 1 Wave 36 10/13/2011 0 0 Wave 37 10/19/2011 0 0 Wave 38 10/27/2011 1 1 Wave 39 11/2/2011 1 1 Wave 40 11/9/2011 4 2 Wave 41 11/16/2011 10 7 Wave 42 11/23/2011 5 3 Wave 43 11/30/2011 4 3 Wave 44 12/7/2011 6 8 Wave 45 12/20/2011 27 16 Wave 46 1/27/2012 1 0 * * * * Totals To Date 10,007 5,397
PAYMENT INFORMATION Primary Plaintiffs Derivative Plaintiffs Payments Made Payments Made Tier 2--Accelerated Final Payments Issue Date Wave 8 3/30/2011 125 75 Wave 9 4/6/2011 546 321 Wave 10 4/13/2011 116 58 Wave 11 4/20/2011 286 152 Wave 12 4/27/2011 312 164 Wave 13 5/4/2011 23 10 Wave 14 5/11/2011 18 6 Wave 15 5/18/2011 15 8 Wave 16 5/25/2011 14 4 Wave 17 6/1/2011 10 5 Wave 18 6/8/2011 4 0 Wave 19 6/15/2011 3 1 Wave 20 6/22/2011 7 4 Wave 21 6/30/2011 1 1 Wave 22 7/6/2011 1 1 Wave 23 7/14/2011 2 2 Wave 24 7/22/2011 2 1 Wave 25 7/27/2011 7 5 Wave 26 8/3/2011 1 0 Wave 27 8/10/2011 1 1 Wave 28 8/17/2011 7 4 Wave 29 8/24/2011 6 1 Wave 30 9/1/2011 4 2 Wave 31 9/7/2011 2 1 Wave 32 9/14/2011 2 2 Wave 33 9/21/2011 0 0 Wave 34 9/28/2011 6 4 Wave 35 10/5/2011 13 6 Wave 36 10/13/2011 2 0 Wave 37 10/19/2011 5 2 Wave 38 10/27/2011 8 6 Wave 39 11/2/2011 12 5 Wave 40 11/9/2011 8 2 Wave 41 11/16/2011 10 5 Wave 42 11/23/2011 5 1 Wave 43 11/30/2011 6 1 Wave 44 12/7/2011 4 2 Wave 45 12/20/2011 23 12 Wave 46 1/27/2012 1 0 * * * * Totals To Date 1,618 875
Tier 3--Accelerated Final Payments Issue Date Wave 8 3/30/2011 42 22 Wave 9 4/6/2011 123 75
Wave 10 4/13/2011 37 20 Wave 11 4/20/2011 145 88 Wave 12 4/27/2011 168 82 Wave 13 5/4/2011 8 3 Wave 14 5/11/2011 8 5 Wave 15 5/18/2011 2 1 Wave 16 5/25/2011 5 2 Wave 17 6/1/2011 5 2 Wave 18 6/8/2011 13 7 Wave 19 6/15/2011 2 1 Wave 20 6/22/2011 5 1 Wave 21 6/30/2011 0 0 Wave 22 7/6/2011 3 1 Wave 23 7/14/2011 7 4 Wave 24 7/22/2011 13 6 Wave 25 7/27/2011 19 9 Wave 26 8/3/2011 1 1 Wave 27 8/10/2011 2 1 Wave 28 8/17/2011 10 2 Wave 29 8/24/2011 12 6 Wave 30 9/1/2011 5 3 Wave 31 9/7/2011 3 2 Wave 32 9/14/2011 1 0 Wave 33 9/21/2011 3 2 Wave 34 9/28/2011 13 7 Wave 35 10/5/2011 5 3 Wave 36 10/13/2011 2 1 Wave 37 10/19/2011 3 2 Wave 38 10/27/2011 8 3 Wave 39 11/2/2011 1 1 Wave 40 11/9/2011 1 0 Wave 41 11/16/2011 3 2 Wave 42 11/23/2011 3 3 Wave 43 11/30/2011 7 6 Wave 44 12/7/2011 3 3 Wave 45 12/20/2011 4 2 * * * * Totals To Date 695 379 Tier 4--Interim Payments Issue Date Wave 21 6/30/2011 2,115 1,219 Wave 22 7/6/2011 46 28 Wave 23 7/14/2011 293 163 Wave 24 7/22/2011 395 226 Wave 25 7/27/2011 69 34 Wave 26 8/3/2011 41 17 Wave 27 8/10/2011 183 92 Wave 28 8/17/2011 300 177 Wave 29 8/24/2011 482 278 Wave 30 9/1/2011 51 23
Wave 31 9/7/2011 217 126 Wave 32 9/14/2011 50 26 Wave 33 9/21/2011 139 91 Wave 34 9/28/2011 184 98 Wave 35 10/5/2011 221 106 Wave 36 10/13/2011 79 49 Wave 37 10/19/2011 67 38 Wave 38 10/27/2011 69 38 Wave 39 11/2/2011 50 31 Wave 40 11/9/2011 50 26 Wave 41 11/16/2011 88 58 Wave 42 11/23/2011 41 24 Wave 43 11/30/2011 94 55 Wave 44 12/7/2011 61 37 Wave 45 12/20/2011 107 59 * * * * Totals To Date 5,492 3,119
PAYMENT INFORMATION Primary Plaintiffs Derivative Plaintiffs Payments Made Payments Made Tier 4--Final Distribution Payments Issue Date 21mc100 Plaintiffs (Final) 1/19/2012 5,124 2,993 21mc102 Plaintiffs (Final) 1/19/2012 137 47 21mc103 Plaintiffs (Final) 1/19/2012 311 155 21mc100 Plaintiffs (Wave 46) 1/27/2012 1 0 21mc100 Plaintiffs (Wave 47) 2/15/2012 19 0 21mc100 Plaintiffs (Wave 48) 2/28/2012 3 0 21mc100 Plaintiffs (Wave 49) 4/2/2012 8 0 * * * * Totals To Date 5,603 3,195
Other Elements of Recovery Primary Plaintiffs Derivative Plaintiffs Payments Made Payments Made Permanent Disability Fund Awards Issue Date Single Payment Wave (Wave 46) 1/3/2012 1,339 N/A Mixed Orthopedic Injury Payments Issue Date Wave 45 12/20/2011 68 N/A Qualifying Surgery Payments Issue Date Wave 15 5/18/2011 8 N/A Wave 16 5/25/2011 9 N/A
Wave 17 6/1/2011 5 N/A Wave 18 6/8/2011 1 N/A Wave 21 6/30/2011 7 N/A Wave 22 7/6/2011 14 N/A Wave 23 7/14/2011 1 N/A Wave 24 7/22/2011 31 N/A Wave 25 7/27/2011 1 N/A Wave 26 8/3/2011 2 N/A Wave 27 8/10/2011 9 N/A Wave 28 8/17/2011 11 N/A Wave 29 8/24/2011 24 N/A Wave 30 9/1/2011 4 N/A Wave 31 9/7/2011 20 N/A Wave 32 9/14/2011 11 N/A Wave 33 9/21/2011 11 N/A Wave 34 9/28/2011 15 N/A Wave 35 10/5/2011 8 N/A Wave 36 10/13/2011 10 N/A Wave 37 10/19/2011 13 N/A Wave 38 10/27/2011 3 N/A Wave 39 11/2/2011 4 N/A Wave 40 11/9/2011 5 N/A Wave 41 11/16/2011 3 N/A Wave 42 11/23/2011 3 N/A Wave 43 11/30/2011 15 N/A Wave 44 12/7/2011 2 N/A Wave 45 12/20/2011 38 N/A Wave 46 1/27/2012 1 N/A * * Totals Qualifying Surgeries* * 287 N/A * * * * Totals To Date (All Other Elements of Recovery) 1,694 N/A
PAYMENT INFORMATION Primary Plaintiffs Derivative Plaintiffs Payments Made Payments Made
Marine Insurers' Payments Issue Date Wave 19 6/15/2011 478 N/A Wave 20 6/22/2011 2 N/A Wave 23 7/14/2011 2 N/A Wave 24 7/22/2011 1 N/A Wave 25 7/27/2011 4 N/A Wave 26 8/3/2011 1 N/A Wave 28 8/17/2011 4 N/A Wave 29 8/24/2011 2 N/A Wave 32 9/14/2011 1 N/A Wave 34 9/28/2011 3 N/A Wave 35 10/5/2011 2 N/A Wave 36 10/13/2011 1 N/A Wave 37 10/19/2011 0 N/A Wave 38 10/27/2011 3 N/A Wave 39 11/2/2011 0 N/A Wave 40 11/9/2011 5 N/A Wave 41 11/16/2011 3 N/A Wave 42 11/23/2011 2 N/A Wave 43 11/30/2011 0 N/A Wave 44 12/7/2011 0 N/A Wave 45 12/20/2011 10 N/A Tier 4 Marine 2/1/2012 782 N/A * * * * Totals To Date 1,306 N/A * * * * Grand Totals To Date 26,415 12,965
EXPENSE AUDIT INFORMATION No. of firms in settlement 26 No. of claimants selected for random audit 455 No. of audits completed 455 %of completion 100% RANDOM AUDIT (Medical Records) No. of firms in settlement 26 No. of Tier 3 claimants selected for random audit 36 No. of Tier 3 cases with all medical records reviewed 36 % of T3 complete (case complete and RA complete) 100% No. of Tier 4 claimants selected for random audit 282 No. of Tier 4 cases with all medical records reviewed 282 % of T4 complete (case complete and RA complete) 100%
LIENS #Claimants Entitlement #Claimants #Liens Waived #Liens Pending Status Entitled To or completed at Verified Medicaid $0 Medicare * * obtained full N/A Full Waiver N/A N/A waiver from Medicare* * Medicaid 9,146 1,056 1,056 0
#Liens #Liens Waived #Liens #Liens Pending Reported or Discharged Resolved * * * * Workers' Comp 1,074 626 357 91 * * * * Remaining Workers' Comp Liens are in the process of being resolved now that gross awards are known
MEDICAL RECORD REVIEW Determination Deficiencies Issued* Notices Issued Tier-2 1,659 139 Tier-3 717 106 Tier-4 5,571 1,965* Deficiencies are reported at an injury level