Station fire victims could receive settlement money soon
01:00 AM EDT on Friday, April 16, 2010
PROVIDENCE — Victims of the deadly 2003 Station nightclub fire could start getting some of their settlement money as soon as five weeks from now.
But it might take longer than that because of information that defense lawyers have asked the plaintiffs for in finalizing the settlement of the mass-tort cases.
Mark Mandell, who represents more than 100 of the fire victims, told a federal judge and a federal magistrate Thursday afternoon that all but one of the 305 plaintiffs who sued have signed releases so they can get their money. He told the judges that by the end of next week, he expects probate proceedings for the lone remaining plaintiff will be wrapped up and the final release signed.
The victims’ lawyers are taking the position that once that last release is signed, the 30-day period begins under which most of the defendants must pay up. At the end of the 30 days, the victims will get 70 percent of their money, Mandell said. The remaining 30 percent will be paid out after 90 days when the remaining defendants pay up.
Under the best-case scenario, the victims could start getting their money by the end of May, but there are some things that could push the payment date back. Lawyers representing the parties sued by the plaintiffs are asking the fire victims to provide information for certain reporting requirements to government entities though it was unclear in court exactly what they are required to report. That is now the subject of negotiations with the plaintiffs’ lawyers.
In addition, an out-of-state firm hired by the fire victims’ lawyers to negotiate Medicare and Medicaid liens is still wrapping up its work. Rhode Island and Massachusetts Medicaid have agreed to waive 40 percent of what they’ve paid for the fire victims who are in their programs. Medicare is also looking for some reimbursement — the dollar amount varies victim to victim — from fire victims who received money from it.
The settlement money — $176 million in total — will be paid into a trust account that’s been established at Citizens Bank. Sixty five defendants have agreed to contribute to the settlement, including the Town of West Warwick where The Station nightclub was located, and the State of Rhode Island. Checks to the victims will be paid to their attorneys, who will then distribute the money.
Senior U.S. District Court Judge Ronald R. Lagueux scheduled another status conference in the case for April 27 at 2 p.m.