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The Genie and The Bottle: Collateral Sources Under the 9/11 Victims Compensation Fund

35 Pages Posted: 10 May 2003  

Kenneth S. Abraham

University of Virginia School of Law

Kyle D. Logue

University of Michigan Law School

Date Written: Spring 2003

Abstract

The September 11th Victim's Compensation Fund provides substantial payments to the families and loved ones of those who died in the 9/11 attacks. Interestingly, unlike any other form of social insurance, and unlike the tort system, the awards from the Fund are offset dollar-for-dollar by certain forms of collateral sources, including life insurance proceeds. This paper exams what function collateral sources (and the traditional rule of "collateral nonoffsets") together with subrogation rights generally play in a tort/compensation regime and why a collateral source offset rule probably make sense in the case of the 9/11 Fund. Our analysis also calls into question the traditional practice among life insurers of not retaining subrogation rights in their insurance policies or, in the absence of such subrogation rights, the traditional rule of collateral nonoffsets in wrongful death cases. The same sort of overcompensation concerns would seem to apply there as apply in the context of the 9/11 Fund.

Suggested Citation

Abraham, Kenneth S. and Logue, Kyle D., The Genie and The Bottle: Collateral Sources Under the 9/11 Victims Compensation Fund (Spring 2003). UVA School of Law, Public Law Working Paper 03-1; U of Michigan Law, Public Law Working Paper 25; Michigan Law and Economics Research Paper 405580. Available at SSRN: https://ssrn.com/abstract=405580 or http://dx.doi.org/10.2139/ssrn.405580

Kenneth S. Abraham (Contact Author)

University of Virginia School of Law ( email )

580 Massie Road
Charlottesville, VA 22903
United States
434-924-3616 (Phone)
434-982-2845 (Fax)

Kyle D. Logue

University of Michigan Law School ( email )

625 South State Street
Ann Arbor, MI 48109-1215
United States
734.936.2207 (Phone)

HOME PAGE: http://kylelogue.net

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