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Victim Compensation Fund Case Study

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That the Victim Compensation Fund would ever be seen as a success once seemed doubtful. The program part of the airline bailout package was intended to protect the airlines from liability claims by offering injured victims and survivors payment in exchange for an agreement not to sue. It passed with little debate while it was going crazy at Ground Zero and was still smoldering. With things going out of control and airlines trying to make deals with victims and their family it looked like nothing was going right for anyone.
The Victim Compensation Fund’s authority was vested in a special master to be appointed by the attorney general and Feinberg became that special master thanks to some politically fortuitous elements of his resume. First, as an attorney with a background in mass settlement cases such as the “Agent Orange” lawsuit, he was uniquely prepared for the job. Second, as a friend of Senator Chuck Hagel, he had a powerful booster. And finally, as a Democrat who was once Ted Kennedy's Chief of Staff he offered the Bush administration both deniability and distance if the Victim Compensation Fund flopped.
Feinberg was eager to take the job, as he notes in the book. He worked pro bono but soon faced daunting challenges. Perhaps the most fundamental difficulty came from …show more content…
He traveled the country to attend public meetings even though many turned into forums for complaints against him. More significantly, he agreed to meet individually with anyone applying for compensation. As he recounts in the book, he personally attended 900 meetings. Victim Compensation Fund staffers attended another 600, which allowed survivors to testify to their loss. That testimony became an unexpected memorial: Feinberg had all the meetings transcribed, and encouraged the participants to pass the transcripts on to their

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