In re Agent Orange Product Liability Litigation
| Decision Date | 28 May 1985 |
| Docket Number | 79-C-747.,MDL No. 381 |
| Citation | 611 F. Supp. 1396 |
| Parties | In re "AGENT ORANGE" PRODUCT LIABILITY LITIGATION, Michael F. RYAN, et al., Plaintiffs, v. DOW CHEMICAL COMPANY, et al., Defendants. |
| Court | U.S. District Court — Eastern District of New York |
COPYRIGHT MATERIAL OMITTED
Stephen J. Schlegel, Schlegel & Trafelet, Ltd., Chicago, Ill.; Thomas Henderson, Henderson & Goldberg, Pittsburgh, Pa.; Phillip E. Brown, Hoberg, Finger, Brown, Cox & Molligan, San Francisco, Cal.; Stanley Chesley, Waite, Schneider, Bayless & Chesley, Cincinnati, Ohio; John Q. O'Quinn, O'Quinn and Hagans, Houston, Tex.; Neil R. Peterson and Gene Locks, Greitzer & Locks, Philadelphia, Pa.; Newton B. Schwartz, Houston, Tex.; Irving Like, Reilly, Like & Schneider, Babylon, N.Y.; David J. Dean, Dean, Falanga & Rose, Carle Place, N.Y.; Aaron Twerski, Hempstead, N.Y., of counsel, for plaintiffs.
Leonard Rivkin, Rivkin, Leff, Sherman & Radler, Garden City, N.Y.; Philip Pakula, Townley & Updike, New York City; Wendell B. Alcorn, Jr., Cadwalader, Wickersham & Taft, New York City; William Krohley, Kelley, Drye & Warren, New York City; Thomas Beck, Arthur, Dry & Kalish, New York City; Bruce Hecker, Shea & Gould, New York City, of counsel; David R. Gross, Budd, Larner, Kent, Gross, Picillo & Rosenbaum, New York City; Paul V. Esposito, Lewis, Overbeck & Furman, Chicago, Ill.; Henry G. Miller, Clark, Gagliardi & Miller, White Plains, N.Y., for defendants.
Arvin Maskin, Dept. of Justice, Washington, D.C., for third-party defendant U.S.
MEMORANDUM, ORDER AND JUDGMENT ON DISTRIBUTION OF THE SETTLEMENT FUND
TABLE OF CONTENTS
I. INTRODUCTON ........................................... 1399
II. LEGAL STANDARDS FOR FUND DISTRIBUTION 1402
III. COMPARISON OF VARIOUS PROPOSALS FOR
DISTRIBUTION .......................................... 1403
A. Postpone Distribution Until the United States
Has Accepted its Responsibility .................... 1403
B. Further Research ................................... 1406
C. Medical Treatment and Health Care Services ......... 1406
D. High Compensation for Specific Diseases ............ 1407
E. Death and Disability Payment Program and
Class Assistance Foundation ........................ 1410
IV. PAYMENTS FOR DEATH AND TOTAL
DIABILITY OF EXPOSED VETERANS ......................... 1410
A. Compensable Death or Disability .................... 1412
B. Determining Total Disability ....................... 1412
C. Proof of Death and Eligible Survivorship ........... 1413
D. Exposure ........................................... 1414
E. Payment Program Time Limits ........................ 1417
F. Structure and Amount of Disability and Death
Benefits ........................................... 1417
1. Disability Benefit .............................. 1418
a. Variation in Award Based on Age and
Year of Occurrence ........................... 1418
b. Onset of Disability and Payment for Past
Disability ................................... 1419
c. Termination of Payment ....................... 1420
d. Other Criteria for Calculating Payment ....... 1420
2. Death Benefit ................................... 1420
3. Variation in Awards Depending on Number of
Subsequent Claims ............................... 1421
a. Disability Payments .......................... 1421
b. Death Payments ............................... 1422
c. Lump Sum Versus Installment Payments ......... 1422
4. Amounts Payable ................................. 1422
5. Disbursements of Any Excess Remaining at
Program Termination ............................. 1423
G. Means Test and Impact of Payment on Public
and Private Assistance ............................. 1423
H. Implementation and Operation of the Payment
Program ............................................ 1427
1. Administration by Private Contractors ........... 1427
2. Preparation of Application Forms ................ 1427
3. Distribution and Return of Applications ......... 1428
4. Processing and Appeals .......................... 1428
5. Benefit Calculation and Adoption of Final
Payment Levels .................................. 1429
6. Annual Reviews and Continuing Eligibility
Reviews ......................................... 1429
7. Court Control and Reports to the Court .......... 1429
8. Veterans Advisory Group ......................... 1430
I. Private Attorney Fee Arrangements .................. 1430
V. CLASS ASSISTANCE FOUNDATION ........................... 1431
A. General Framework .................................. 1432
1. Funding Priorities .............................. 1432
2. Funding Structure ............................... 1432
3. Persons Who Should Receive Services ............. 1433
B. Governance ......................................... 1434
1. Tax Exempt Status and Organzation in
Perpetuity ...................................... 1434
2. Board of Directors .............................. 1434
3. Executive Director .............................. 1435
C. Funding and Disbursements .......................... 1435
1. Court Supervision of Disbursement ............... 1435
2. Rate of Payout and Future Needs ................. 1436
3. Indemnity Reserve and Payout of Balance of
Endowment Remaining After Twenty-Five
Years ........................................... 1437
D. Mandates and Goals in Funding Services ............. 1437
1. Possibilities for Funding of Birth Defect and
Reproductive Problem Programs ................... 1438
a. Maximizing Access to Existing Services
and Provision of Family Support Programs ..... 1438
b. Additional Projects and Emergency
Financing for Medical Services ............... 1439
c. Reproductive Problems and Genetic
Counseling ................................... 1439
2. Possibilities for Funding of Classwide Services 1440
a. National Vietnam Veterans Advocacy
Center ....................................... 1440
b. National Hotline and Referral Service
Agent Orange Information Clearinghouse
and Public Information Programs .............. 1441
c. Other Projects ............................... 1441
E. Grant and Contract Procedures ...................... 1441
1. Development of Specific Funding Priorities ...... 1441
2. Grant Application and Review Process ............ 1441
a. Open and Competitive Bidding ................. 1442
b. Review of Bids and Monitoring of Ongoing
Projects ..................................... 1442
3. Service Suppliers Represented on the Board of
Directors ....................................... 1442
F. Fundraising ........................................ 1442
1. Matching Grants, Joint Ventures and Similar
Devices ......................................... 1443
2. Charitable Contributions ........................ 1443
VI. AUSTRALIAN AND NEW ZEALAND
CLAIMANTS ............................................. 1443
VII. IMPLEMENTATION AND OPERATION OF THE
DISTRIBUTION PLAN ..................................... 1445
A. Communications with the Class ...................... 1445
1. Publication of the Terms of the Plan ............ 1445
2. Periodic Notice About the Operation of the
Plan ............................................ 1446
3. Mailing to Prospective Payment Program
Claimants ....................................... 1446
4. Coordinated Mailings by the Class Assistance
Foundation ...................................... 1447
5. Assistance for Claimants in Filling Out Forms 1447
B. Overall Structure and Financial Matters ............ 1448
1. Minimizing Adverse Tax Consequences ............. 1448
2. Investment ...................................... 1448
3. Administrative Budgets .......................... 1449
4. Audits .......................................... 1449
C. Role of the Special Master and Implementation
Schedules .......................................... 1450
1. Payment Program ................................. 1451
2. Class Assistance Foundation ..................... 1451
3. Annual Operating Schedules ...................... 1451
VIII. CONCLUSION ............................................ 1451
On May 7, 1984, a settlement was reached in this class action by Vietnam veterans and their family members against seven chemical companies for injuries plaintiffs believed were caused by exposure of the veterans to Agent Orange and other phenoxy herbicides in Vietnam. The settlement has been found, under the circumstances, to be fair, reasonable and adequate; the reasonable fees and expenses to be paid from the settlement fund to plaintiffs' attorneys have been determined; and final approval has been given to the settlement. See, e.g., In re "Agent Orange" Product Liability Litigation, 611 F.Supp. 1296 (E.D.N.Y.1985) (); 597 F.Supp. 740 (Preliminary Memorandum and Order on Settlement); 611 F.Supp. 1285 (E.D.N.Y.1985) (...
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