In re September 11 Litigation

236 F.R.D. 164, 2006 WL 846346
CourtDistrict Court, S.D. New York
DecidedMarch 31, 2006
DocketNos. 21 MC 97(AKH), 21 MC 101(AKH)
StatusPublished
Cited by4 cases

This text of 236 F.R.D. 164 (In re September 11 Litigation) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re September 11 Litigation, 236 F.R.D. 164, 2006 WL 846346 (S.D.N.Y. 2006).

Opinion

[165]*165 OPINION AND ORDER REGULATING TESTIMONY AT DEPOSITIONS WHEN ANSWERS MIGHT CONTAIN SSI

HELLERSTEIN, District Judge.

I write to rule on a strange and significant phenomenon. The Transportation Security Administration (“TSA”), having first intervened in these actions to protect Sensitive Security Information (“SSI”), declines to at[166]*166tend noticed depositions of the airline defendants, where testimony is likely to contain such information. Instead, TSA seeks to impose on defendants’ counsel the obligation to object and prevent answers that might disclose SSI. Counsel for defendants, believing that their clients’ interests are best advanced by answering the questions put to their witnesses and that the applicability of SSI to conditions of airline security five years earlier might not be easy to discern, object to the TSA proposal. Defense counsel also express concern about exposure to civil penalties if they and their witnesses fail to protect SSI. Plaintiffs press to proceed, citing lengthy delays, and pointing out that many of their counsel — all those who would be taking the depositions — were cleared by TSA to obtain access to SSI pending TSA authorization of such disclosure. Plaintiffs contend that the procedure recommended by the TSA, that they could put questions to witnesses but not hear answers until final determinations by TSA that the answers could be given, would make the role of counsel entirely ineffective, and cancel the very right of the clients to seek a relief specifically acknowledged by Act of Congress.

Judicial intervention to regulate the impasse is imperative, to avoid further and unnecessary delay in the progress of these cases and to relieve counsel of the inherent conflicts and artificial roles that TSA’s position would create for them. For the reasons stated in this opinion, I hold that there are reasonable and appropriate ways to allow the depositions to proceed by normal procedures, without compromising SSI or the jurisdiction of TSA to determine SSI.

I. Chronological Background

The terrorist-related aircraft crashes of September 11, 2001 shocked America by the number of deaths and the scope of injuries that directly resulted, and in many indirect ways. One particular consequence was the threat to the American airline industry. As airline executives represented to Congress, the lawsuits that were expected to follow could cripple the American aviation industry, causing extensive and dangerous consequences to the entire nation.

Congress responded quickly, passing eleven days later the Air Transportation Safety and System Stabilization Act (“ATSSSA”). ATSSSA, Pub.L. 107-42, 115 Stat. 230 (2001) (codified at 49 U.S.C. §§ 40101 note). Recoveries against the airlines were to be limited to their insurance coverage. ATSSSA § 408(a). All claims “resulting from or relating to the terrorist-related aircraft crashes of September 11, 2001” “including any claim for loss of property, personal injury, or death” were to be brought exclusively in the United States District Court for the Southern District of New York. ATSSSA § 408(b)(3). And most uniquely, the injured and the representatives of those who had died were given an alternative to a lawsuit: a Victim Compensation Fund specially established and funded to provide quick, economical and final tax-free relief to those who might wish to apply. ATSSSA § 405.

The story of the Victim Compensation Fund is the subject of the report of its brilliant, energetic and empathetic Special Master, Kenneth Feinberg. See Kenneth R. Feinberg et ah, U.S. Dept, of Justice, Final Report of the Special Master for the September 11th Victim Compensation Fund of 2001. Of those who lost family members, 2,880, representing 97 percent, elected to apply. An additional 2,680 individuals who sustained injuries on September 11 or during the rescue efforts also elected to apply. Total recoveries were $7.049 billion, amounting to an average of $2 million awarded to family members of the deceased and $400,000 awarded to those who sustained physical injury. But for the Victim Compensation Fund, all or most of the claimants would have filed suit in this court.

As the judge who drew the assignment to preside over all the September 11-related liability lawsuits, my first efforts were to preserve the alternative conferred by Congress in the ATSSSA: to file a claim with the Victim Compensation Fund, or to file a lawsuit. My initial decisions preserved both options. Compare Colaio v. Feinberg, 262 F.Supp.2d 273 (S.D.N.Y.2003), aff'd, 345 F.3d 135 (2d Cir.2003) (upholding validity of Victim Compensation Fund), with In re September 11 Litigation, 280 F.Supp.2d 279 [167]*167(S.D.N.Y.2003) (holding that defendants have duty to ground victims, as well as passengers, for negligently caused death and injury). Thus, the injured, and the representatives of those who died, were entitled to seek relief, either “by filing claims with [the] Special Master,” or “in the traditional manner, by alleging and proving their claims in lawsuits[.]” In re September 11 Litigation, 280 F.Supp.2d at 286. But these were alternatives; a claimant could not first file with the Victim Compensation Fund, and then, on second thought, file a lawsuit. See Virgilio v. Motorola, 2004 WL 433789 (S.D.N.Y. March 10, 2004), aff'd, 407 F.3d 105 (2d Cir.2005).

The time provided by Congress for filing with the Victim Compensation Fund drew to a close on December 22, 2003. The Fund officially closed June 15, 2004. Remaining for determination then were the lawsuits filed in this court.

By companion Orders of July 24, 2002 and November 1, 2002, I ordered the consolidation of all actions for wrongful death, personal injury, and property damage or business loss under the master docket 21 MC 97.1 (See Order dated July 24, 2002; Order dated Nov. 1, 2002.) TSA intervened in order to protect against unauthorized disclosure of information deemed by TSA to constitute SSI. (See Order to Show Cause, dated June 28, 2002.) In setting forth its approach to disclosure of SSI information for purposes of the instant litigation, TSA initially took the position that all SSI-related discovery requests should be stayed pending narrowing of the issues relevant to the September 11 litigation by motion practice. (See Deck of Stephen McHale (“McHale Deck I”), dated Sept. 12, 2002 at 1HI 16,17.) Following such narrowing of the potential scope of SSI-related discovery, TSA proposed to provide counsel “SSI substitutes” consisting of appropriately redacted documents and perhaps supplemented by a “general summary of SSI, and/or a declaration that supports certain material facts that relate to the particular SSI at issue.” (Id. at If 19.) As an alternative to provision of “SSI substitutes,” TSA also proposed to establish a clearance procedure for a limited number of attorneys and litigation support staff whereby such individuals would be granted conditional access to material deemed to constitute SSI. (Id. at UU 20, 21.) Further to the TSA representations, thirteen of plaintiffs’ lawyers in fact obtained the needed security clearance. (See TSA Letter, dated Dec. 2, 2003; see also McHale Deck I at UU 20, 21.)

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Cite This Page — Counsel Stack

Bluebook (online)
236 F.R.D. 164, 2006 WL 846346, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-september-11-litigation-nysd-2006.