Extra: The Station Fire
Plan filed for Station fire victims
12:49 PM EST on Saturday, January 10, 2009
PROVIDENCE –– A court-appointed master yesterday filed a plan with the federal court for distributing $176 million in settlement money to those who lost loved ones or suffered injuries in The Station nightclub fire.
The plan of distribution devised by Duke University Law Prof. Francis E. McGovern differs very little from the original one that was distributed last fall to more than 300 plaintiffs who have filed lawsuits seeking money damages in connection with the catastrophic blaze.
Under the plan, the survivors who were most badly burned and were hospitalized the longest will receive more money than several of the families who lost loved ones in the fire. A minor child could end up receiving more than a surviving spouse.
McGovern’s plan operates on a point system and he proposes different point systems for death cases and for injury claims. The system is similar to those used in other large liability cases, such as the settlements in the 9/11 attacks.
As long as plaintiffs can prove they were inside the West Warwick club the night of Feb. 20, 2003 when the fire broke out and can properly document injuries –– physical or psychological –– they will receive a share of the $176 million. One hundred people died from the fire and more than 200 were injured.
Under the proposed plan, points are allocated by categories of harm, such as a minor losing a parent, medical expenses and physical and psychological injuries. Each category has a number of points. Each victim will be assigned points based on categories of harm that apply. Points will be awarded for injuries, pain and suffering, permanent disability, scarring, lost earning capacity and lost earnings.
Once all of the plaintiffs have been assigned their points, all of the points for all of the victims will be totaled, and this total will be divided into the $176 million to determine a dollar amount for each point.
Once that dollar amount is determined, each person’s total points will be multiplied by that amount. That will be the gross amount they will receive –– before legal fees and expenses are deducted. Lawyers have not said what they will charge. Personal injury lawyers often take 30 to 40 percent of settlements or jury awards though they sometimes agree to take less, as was the case with the special master appointed to oversee distribution of the 9/11 Fund, which was financed by U.S. taxpayers. McGovern is donating his services to the victims though his expenses will be deducted from the settlement fund.
None of the victims has been given precise figures on what they might actually receive. Some victims have been told that they can expect to receive several hundred thousand dollars while others may get less than $20,000. Others are expected to receive more than $1 million.
Under the proposed plan, those who stand to get the most include victims such as Joe Kinan, a Massachusetts resident who spent 10 months and 17 days in hospitals after the fire, and Gina Gauvin, a Johnston single mother of three who was hospitalized for 133 days and suffered burns over 60 percent of her body. Her in-patient expenses for care at UMass Memorial Medical Center, in Worcester, totaled $450,000.
In a separate report filed simultaneously with McGovern’s, William A. Poore, the Providence lawyer appointed by the court to represent the dozens of minors who will receive some of the settlement money, says McGovern’s proposed plan of distribution “meets acceptable standards for fairness, consistency and justice.”
The victims won’t be seeing any money for several more months. U.S. District Court Judge Ronald R. Lagueux, who is presiding over the victims’ lawsuits, has to approve the plan of distribution. A trust fund must be set up as a depository for the settlement proceeds.
In addition, the victims will have to submit claim forms through their lawyers, with the required documentation, to a neutral verification expert who will verify that each completed form is accurate. The neutral expert will be appointed by the court and chosen by the victims’ lawyers.
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