IN RE WORLD TRADE CENTER DISASTER SITE LITIGATION

No. 21 MC 100(AKH).

871 F.Supp.2d 263 (2012)

In re WORLD TRADE CENTER DISASTER SITE LITIGATION.

United States District Court, S.D. New York.

May 17, 2012.


Attorney(s) appearing for the Case

Marion Sandra Mishkin , Marion S. Mishkin, Esq. , Blair Courtney Fensterstock , Michael Theodore Phillips, II , Fensterstock & Partners LLP, Robin Michel Wertheimer , Wertheimer Associates, P.C., Andrew John Carboy, Sr. , Sullivan, Papain, Block, McGrath & Cannavo, P.C., Suzanne Melissa Scott , A. Joseph Giannini , Mariangela Chiaravalloti , Friedman, Chiaravalloti & Giannini, Denise Ava Rubin , Marc Jay Bern , Brian David Crosby , Napoli Bern Ripka Shkolnik, LLP, Edward L. Marcowitz , Barasch McGarry Salzman Penson & Lim, Stephen Jeffrey Riegel , Weitz and Luxenburg, P.C., W. Steven Berman , William Joseph Dubanevich , George N. Kalamaras , Michael C. Mace , Patricia I. Jorge , Christopher R. Lopalo , Wroby, Groner Edelman & Napoli Bern, LLP, David L. Kremen , Oshman & Mirisola, LLP, Donna Rae Silverglad , Sacks & Sacks, LLP, Andrew John Schotz , Flemming, Zulack, & Williamson, L.L.P., New York, NY, Willard R. Pratt, III , Vernon, NY, Harvey B. Ginsberg , Worby, Groner, Edelman, & Napoli Bern, LLP, East Meadow, NY, Ryan Seth Goldstein , Law Office of Ryan S. Goldstein, PLLC, Bronx, NY, for Plaintiffs.

Marion Sandra Mishkin Marion S. Mishkin, Esq., New York, NY, pro se.

Francis Lavery, pro se.

Kathryn Lavery, pro se.

Arlene McGillick, pro se.

Jon J. McGillick, pro se.

Dewardranth Samaroo, pro se.

Sue Ann Andersen, pro se.

Lisa Reynolds, pro se.

Sharon Accetta, pro se.

Wendy Henry, pro se.

Joseph Leahy, pro se.

Sandra Leahy, pro se.

Allison Edwards, pro se.

William Edwards, Malone, NY pro se.

Debra Curcio, pro se.

Peter Curcio, pro se.

Patricia M. Digiovanni, pro se.

James Fullam, pro se.

Jacqueline Miller, pro se.

James Miller Ossining, NY, pro se.

James Mullen, pro se.

Kim Mullen, pro se.

John Murphy, pro se.

Suzanne Murphy, pro se.

Dan Potter, pro se.

Jean Potter, pro se.

James Service, pro se.

Rebecca Service, pro se.

Khemraj Singh, pro se.

Antonio Martino, pro se.

Nicole Martino pro se.

James Baumann, pro se.

Richard Bittles, pro se.

John Marks, pro se.

Lisa Marks, pro se.

Anthony Marden, pro se.

Christina Marden, pro se.

Kathleen Doerler, pro se.

Elizabeth Connolly, pro se.

James Connolly, pro se.

Catherine Musto, pro se.

Louis Musto, pro se.

Gerald Quill, pro se.

Linda Quill, pro se.

Edward Scharfberg, pro se.

Marylee Scharfberg, pro se.

Christine Voce, pro se.

Gregory Voce, pro se.

Cora Weihs, pro se.

Joseph Weihs, pro se.

Suzanne Worontzoff, pro se.

Walter Worontzoff, pro se.

Anna Zecca, pro se.

Barbara Lopez, pro se.

George Zecca, pro se.

Manuel Lopez, pro se.

Thomas Lennon, pro se.

Aida Valdiulezo-Nieto, pro se.

Edward Learning, pro se.

Victoria Learning, pro se.

Hamide Cagatay, pro se.

Zebebulah Cagatay, pro se.

Jose Calle, pro se.

Rudolph Geiger, pro se.

Bozena Kajewska-Pielarz, pro se.

Joesf Pielarz, pro se.

Carolyn Bryson, pro se.

Robert Mule, pro se.

Charity Oberdier, pro se.

Jeffrey Oberdier, pro se.

Deborah Scotto, pro se.

Dominick Scotto, pro se.

Hector Flamenco, FCI, Fort Dix, NJ, pro se.

Gregory J. Cannata & Associates and Robert A. Grochow, P.C., New York, NY, pro se.

Stanislaw Faltynowicz, pro se.

Andrew John Scholz , James Bruce Eisenberg , Judith Pearl Falk , Thomas A. Egan , Gerald Gordon Paul , Flemming, Zulack, Williamson & Zauderer, LLP, Gregg Scott Scharaga , Havkins Rosenfeld Ritzert & Varriale, LLP, Mark Joseph Weber , Mound Cotton Wollan & Greengrass, Howard F. Strongin , Jill Suzanne Taylor , Strongin Rothman & Abrams, LLP, Nancy Loraine Pennie , Aaronson Rappaport Feinstein & Deutsch, LLP, Edward M. Fogarty, Jr. , Litchfield Cavo , Demetra Sophocleous , Morrison Mahoney, LLP, Richard Eric Leff , McGivney & Kluger, Lee Ann Stevenson , Michael David Reisman , Kirkland & Ellis LLP, Virginia Goodman Futterman , London Fischer, LLP, Brian Scott Levine , Lorraine Gwynneth McKay , Cozen O'Connor , James Finbar Desmond, Jr. , New York City Law Department, Dorothy Samel , Jeffrey Samel & Partners, Maria J. Ciccia , Stiefel & Cohen, Richard M. Fedrow , Bivona & Cohen, P.C., Myra Needleman , London Fischer, LLP, New York, NY, James Edward Tyrrell, Jr. , Caroline F. Bartlett , Eric Sean Westenberger , Patton Boggs, LLP, Newark, NJ, Shannon W. Conway , Shana Lynn Burleson , Patton Boggs LLP, Dallas, TX, Christopher Quinn , Gary W. Harvey , Jeffrey A. Kidder , Morrison Mahoney, LLP, Boston, MA, Robert J. Higgins , Dickstein Shapiro Morin & Oshinsky LLP, Washington, DC, Christian Holt Gannon , Segal McCambridge Singer & Mahoney, Ltd., Chicago, IL, Marc Howell Pillinger , Kuczinski, Vila, Tarallo, Pillinger & Miller, LLP, Elmsford, NY, Aaron J. Stahl , Alashia L. Chan , Jairo Andres Mayor , Joseph A. Clark , Maureen C. Pavely , Benjamin E. Haglund , Day Pitney, L.L.P., Parsippany, NJ, Brian E. Moffitt , John D. Coyle , Day Pitney, LLP, Florham Park, NJ, Cynthia K. Courtney , Day Pitney, L.L.P., Hartford, CT, Anita B. Weinstein , Cozen O'Connor, Philadelphia, PA, Christopher C. Ross , Law Office of Christopher Ross, East Patchogue, NY, for Defendants.

Bacou-Dalloz US Headquarters, Smithfield, RI, pro se.

Seasons Industrial Contracting, Staten Island, NY, pro se.

Lefrak Organization Inc., Rego Park, NY, pro se.

Rockrose Development Corp., New York, NY, pro se.

Lastrada General Contracting Corp., College Point, NY, pro se.

Grub & Ellis Management Services, Inc., Albany, NY, pro se.

Survivair Respirators, Inc., Santa Ana, CA, pro se.

RY Management, Brooklyn, NY, pro se.


ORDER ACCEPTING FINAL PAYMENT REPORTS FILED BY ALLOCATION NEUTRAL

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:

1. The Settlement ("SPA") with New York City and the contractors engaged by the City, effective January 5, 2011:1 The base amount of the settlement was $625 million (plus an additional $3.5 million towards administrative expenses). The base amount does not include Bonus payments and Contingent Payments, also provided by the settlement agreement but which are the subjects of dispute and have not been paid.2 2. The settlement with the contractors of the Freshkills landfill — Phillips and Jordan, Inc., Evans Environmental and Geological Science and Management, and Taylor Recycling Facility LLC, effective January 5, 2011 and June 21, 2011: The amount of the settlement was $24.3 million, of which $300,000 was allocated for administrative expenses.3 3. The settlement with Survivair Respirators, Inc., effective April 5, 2011: The amount of the settlement was $4.1 million.4 4. The settlement with insurers associated with Lloyd's of London, insurers of Weeks Marine, Inc., effective May 4, 2011, relating to the shipments by barge of debris of the World Trade Center from Manhattan to Fresh Kills, Staten Island: This settlement was for the aggregate amount of $28 million.5 5. The settlement with the Port Authority of New York and New Jersey, Inc. effective May 4, 2011: This settlement was for the aggregate amount of $47.5 million, of which amount $509,901 was allocated for administrative costs.6

The aggregate amount of all these settlements is $720.8 million, exclusive of adjustment, bonus increases, and contingent payment increases, discussed later.7 And the settling defendants agreed to pay an additional $4,309,901 towards administrative expenses.

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.8 This sum, less plaintiffs' counsel's fee and expenses, has been paid to the settling plaintiffs.9 The Final Reports relating to the settlements with the other defendants described above add to this amount. In all, approximately $710,000,000 cash10 has been disbursed:

• $12,878,444 to Tier I plaintiffs (the plaintiffs proving the least category of injury) ($7,646,949 of which is from the SPA, and the balance from the settlements with other defendants11); • $19,100,078 to Tier II plaintiffs ($13,461,462 from the SPA, and the balance from the settlements with other defendants); • $12,092,183 to Tier III plaintiffs ($8,901,754 from the SPA, and the balance from the settlements with other defendants); and • $661,550,817 to Tier IV plaintiffs, the plaintiffs proving the severest injuries relating to the toxins at the World Trade Center worksite ($605,457,158 from the SPA, and the balance from the settlements with other defendants).

As I found when I approved it, the settlement with New York City and its contractors, although not perfect, is fair and reasonable.12 The settlements with the other defendants are consistent, and I approved them as fair and reasonable as well.13 The settlements emphasize payments to the Tier IV plaintiffs, the plaintiffs and their families who were most severely injured by their work at the World Trade Center. Indeed, Tier IV plaintiffs received approximately 94 percent of the entire settlement distribution — a feature of the settlements that was most important in my determinations of fairness and reasonableness. By limiting attorneys' contingent fees to 25 percent and minimizing the effects of liens and transactions costs, the settlements net to even greater significance.14

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.15 An appeal by the WTC Captive and the City of New York and related defendants is pending. In addition, the Tier IV plaintiffs also will be eligible under the settlement agreement for Contingent Payments, payable each year for five years on the anniversary dates following the Settlement Effective Date of January 5, 2011, up to $5 million each year, depending on the number of New Debris Removal claims filed as of that date, and depending upon the amount of money having been paid by defendants to settle with opt-out plaintiffs and indemnify defendants with respect to new claims.16

These settlements and their administrations reflect the skill, energy and resourcefulness of the attorneys, for plaintiffs, defendants and the WTC Captive. This last chapter of administration reflects the diligence, fairness and efficiency of the Allocation Neutral and the Appeal Neutral, Matthew Garretson and Kenneth Feinberg, respectively. Not a single complaint about this administration came to the court. All involved in these settlement proceedings merit great approbation.

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)

FRESH KILLS AND PORT AUTHORITY PAYMENT FINAL STATUS REPORT FROM THE ALLOCATION NEUTRAL

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.

Fresh Kills Final Settlement Status

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

Port Authority Final Settlement Status

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.

Respectfully submitted, /s/ Matthew L. Garretson, Esq. Garretson Resolution Group, Inc. Allocation Neutral May 3, 2012

Exhibit 1

           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

Exhibit 2

           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

FINAL PAYMENT REPORT FROM THE ALLOCATION NEUTRAL

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 conclusion of the claims submission deadline:

• 10,112 Claim Forms • Over 15,000 work verification documents • Over 160,000 medical record files • Over 1,000 Medicaid liens resolved (waived or adjudicated) • Over 1,000 Workers' Compensation Liens reported (waived or adjudicated) • Over 2,200 Deficiency Notices issued • Over 1,800 Deficiency Cures • 1,123 Reconsideration Requests • 342 Appeals • 455 Expense Audits (randomly selected per the Settlement Process Agreement) • Over 350 sets of estate and personal representative documents • Over 300 Random Audits of medical records (per the Settlement Process Agreement) • 49 Payment Instruction Reports • Initial Payments (all Tiers) to 15,404 Primary and Derivative Plaintiffs • Accelerated Final Payments (Tiers 2 & 3) to 3,567 Primary and Derivative Plaintiffs • Interim Payments (Tier 4) to 8,611 Primary and Derivative Plaintiffs • Permanent Disability Fund Awards to 1,339 Primary Plaintiffs • Mixed Orthopedic Injury Payments to 68 Primary Plaintiffs • 286 Qualifying Surgery Payments to Primary Plaintiffs • 1,306 Marine Payments to Primary Plaintiffs • Final Distributions (Tier 4) to 8,798 Primary and Derivative Plaintiffs • Monetary distribution by Tier and payment type as follows:
Tier 1

  • Initial                  $     7,133,750
  &bull Permanent Disability      $     83,199.22
  • Marine                   $    430,000.00
Total                             $  7,646,949.22

Tier 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                             $ 13,461,461.61

Tier 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                             $  8,901,754.40

Tier 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.

Status of Payments

Initial Payments: Initial Payments were made to each Plaintiff who opted in to the Settlement Process Agreement (as determined pursuant to Section IX.A of the Agreement) and for whom the Allocation Neutral determined the payment eligibility requirements were satisfied (as set forth in Section VII of the 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.

Tier 2 and 3 Accelerated Final Payments: The Allocation Neutral issued the first Accelerated Final Payment Instruction Report on March 30, 2011, and continued issuing such reports through January 27, 2012. A Plaintiff's placement on a Payment Instruction Report was subject to certain conditions precedent, including resolution of any associated deficiency cures, and, if applicable, Reconsideration Request and Appeal. In total, the Payment Instruction Reports for Accelerated Final Payments included 1,618 Tier 2 Primary Plaintiffs, 875 Tier 2 Derivative Plaintiffs, 695 Tier 3 Primary Plaintiffs, and 379 Tier 3 Derivative Plaintiffs.

Tier 4 Interim Payments and Final Distributions: The Allocation Neutral issued the first Interim Payment Instruction Report on June 30, 2011 for Tier 4 Plaintiffs and thereafter issued an additional 24 such Payment Instruction Reports through December 20, 2011. A Plaintiff's placement on a Payment Instruction Report was subject to certain conditions precedent, including resolution of any associated deficiency cures, and, if applicable, Reconsideration Request and Appeal. In total, the Payment Instruction Reports included Tier 4 Interim Payments to 5,492 Primary Plaintiffs and 3,119 Derivative Plaintiffs. Final Distributions for all Master Dockets were completed for over 99% of plaintiffs on January 19, 2012. Plaintiffs who planned to structure their Final Distributions were included on payment instructions between January 27, 2012 and April 2, 2012.

Throughout the payment process, the WTC Captive was diligent and exceptionally prompt in processing Payment Instruction Reports from the Allocation Neutral.

Status of Other Elements of Recovery

Permanent Disability Fund Awards: The Allocation Neutral issued 1,339 Prmanent Disability Payment Instructions. These awards were made pursuant to Section XVI of the Settlement Progress Agreement.

Mixed Orthopedic Injury Payments: The Allocation Neutral issued Payment Instructions for 68 Mixed Orthopedic Injuries occurring during work or volunteer service at the WTC site or related locations at which the respective Plaintiff alleged exposure.

Qualifying Surgery Payments: The Allocation Neutral issued instructions for 287 Qualifying Surgery payments subject to procedures listed in Exhibit D to the Settlement Process Agreement.

London Marine insurance settlement: Pursuant to the separate settlement with the London Marine insurers, the London Marine Insurers deposited $28 million into the Separate Account on June 9, 2011. Shortly after that deposit, initial marine payments began being issued to settling Primary Plaintiffs eligible to participate in the London Marine insurance settlement. Overall, Marine Payments were made to 1,306 Primary Plaintiffs, the last of which were made on February 2, 2012.

Expense Audits

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).

Random Audits

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.1

Appeals

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.

Remaining Items/Issues

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,2 resolving any remaining Workers' Compensation liens and distributing residual interest remaining in the Separate Account. All of these items could not be completed until Final Distribution amounts were known and/or distributed. The Allocation Neutral does not expect that these few remaining items will present any issues.3

Conclusion

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.

Respectfully submitted, /s/ Matthew L. Garretson, Esq. Garretson Resolution Group, Inc. Allocation Neutral April 23, 2012

Exhibit 1--WTC Operational Metrics Dashboard

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

Exhibit 1--WTC Operational Metrics Dashboard

4/23/2012

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

Exhibit 1--WTC Operational Metrics Dashboard

4/23/2012

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

Exhibit 1--WTC Operational Metrics Dashboard

4/23/2012

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

FootNotes


1. See Order, In re World Trade Ctr. Disaster Site Litig., 762 F.Supp.2d 631 (S.D.N.Y.2010) (approving settlement as fair and reasonable).
2. See Order, In re World Trade Ctr. Disaster Site Litig., 834 F.Supp.2d 184 (S.D.N.Y.2011) (ordering WTC Captive Insurance Company to pay Bonus Payments in the amount of $55 million, based on the proportion of settling plaintiffs to the total number filed and pending as of April 12, 2010). Defendants' appeal to the U.S. Court of Appeals for the Second Circuit is pending. An Opinion and Order soon will be forthcoming relating to Contingent Payments, based on the number of cases filed after April 12, 2010 and which remained pending as of the dates provided in the settlement agreement.
3. See Order, In re World Trade Ctr. Disaster Site Litig., Doc. No. 2248, 2010 WL 4683610 (S.D.N.Y. Nov. 15, 2010); Order, In re World Trade Ctr. Disaster Site Litig., 2011 U.S. Dist. LEXIS 71501 (S.D.N.Y. June 21, 2011) (approving settlements as fair and reasonable).
4. See Order, In re World Trade Ctr. Disaster Site Litig., Doc. No. 2248, 2010 WL 4683610 (S.D.N.Y. Nov. 15, 2010) (approving settlement as fair and reasonable).
5. See Order, In re World Trade Ctr. Disaster Site Litig., Doc. No. 2248, 2010 WL 4683610 (S.D.N.Y. Nov. 15, 2010) (approving settlement as fair and reasonable).
6. See Order, In re World Trade Ctr. Disaster Site Litig., Doc. No. 2213 (S.D.N.Y. Oct. 14, 2010) (approving settlement as fair and reasonable).
7. See Order, In re World Trade Ctr. Disaster Site Litig., Doc. No. 2248, 2010 WL 4683610 (S.D.N.Y. Nov. 15, 2010) (approving the ancillary settlements in their separate and aggregate amounts).
8. An additional amount, $27,550,754.22 was paid as premiums for the Cancer Insurance Policies, distributed to the settling plaintiffs. Many of the settling plaintiffs also participated in the settlement with other defendants. See discussion, infra.
9. A certain number of plaintiffs have not yet been paid. These await resolutions of disputes by probate courts and various contestants to the funds held by plaintiffs' counsel.
10. This figure does not include the $27,550,754.22 for Cancer Insurance Premiums.
11. These breakdowns by Tier do not include amounts paid in the $4.1 million Survivair Respirators settlement, because such a breakdown for that settlement was not available.
12. See Order, In re World Trade Ctr. Disaster Site Litig., 762 F.Supp.2d 631 (S.D.N.Y.2010).
13. See Order, In re World Trade Ctr. Disaster Site Litig., Doc. No. 2248 (S.D.N.Y. Nov. 15, 2010).
14. See, Order, In re World Trade Ctr. Disaster Site Litig., 834 F.Supp.2d 184, 188 (S.D.N.Y. 2011)
15. See Order, In re World Trade Ctr. Disaster Site Litig., 834 F.Supp.2d 184 (S.D.N.Y.2011).
16. My opinion and order so ruling, and rejecting defendants' objections, will be issued soon.
1. "Targeted Audits" would only have been required if more than 10% of Tier 3 and/or Tier 4 claims selected for Random Audits result in findings by the Allocation Neutral of material misrepresentation, material omission or material concealment of the type described in Section XI.M of the Settlement Process Agreement.
2. The Allocation Neutral shall reconcile total disbursement dollars to ensure "zero balance", that is the total net proceeds to claimants (contained on the payment instruction reports) equals the total amount of all checks written from plaintiff counsel's bank account.
3. The Allocation Neutral is aware of the Parties' dispute regarding additional Section VI .E "bonus" money and stands ready to assis t the Parties with the distribution of such additional funds, if any, pending resolution of this issue by the U.S. Court of Appeals for the Second Circuit. In addition, the Allocation Neutral stands ready to assist the Parties with the future distribution of Contingent Payments, should any become due.

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