The September 11th Victim Compensation Fund of 2001 (CRS Report for Congress)
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| Release Date |
Dec. 3, 2002 |
| Report Number |
RL31179 |
| Report Type |
Report |
| Authors |
Henry Cohen, American Law Division |
| Source Agency |
Congressional Research Service |
Summary:
The Air Transportation Safety and System Stabilization Act, P.L. 107-42 ( H.R. 2926 ),
which is designed to aid the airline industry after the terrorist attacks of September 11, 2001, was
signed into law on September 22, 2001. Title IV of this statute, titled the "September 11th Victim
Compensation Fund of 2001," creates a federal program to compensate victims of the September 11
attacks. A victim or, if he is deceased, his "personal representative," may seek no-fault
compensation from the program or may bring a tort action against an airline or any other party, but
may not do both, unless the other party is a terrorist. This exception was enacted on November 19,
2001, by the Aviation and Transportation Security Act, P.L. 107-71 ( S. 1447 ), section
201 of which amended P.L. 107-42 .
The number of people who may bring tort actions may be limited, however, as the statute caps
some defendants' liability to the limits of their liability insurance coverage. P.L. 107-42 capped air
carriers' liability in this manner, and P.L. 107-71 did the same for any "aircraft manufacturer, airport
sponsor ["the owner or operator of an airport (as defined in section 40102 of title 49, United States
Code"], or person with a property interest in the World Trade Center, on September 11, 2001
. . . or
their directors, officers, employees, or agents." P.L. 107-296 ( H.R. 5005 ), Section  890,
did the same for persons engaged in the business of providing air transportation security, and their
affiliates. P.L. 107-71 also provided that these caps shall apply if the United States exercises its right
of subrogation against any of these parties with respect to claims it pays under the compensation
program.
The final two sections of this report discuss, respectively, the interaction of the USA PATRIOT
ACT of 2001, P.L. 107-56 ( H.R. 3162 ), with the September 11th Victims Compensation
Fund of 2001; and the final rule issued by the Special Master on March 7, 2002 to implement the
September 11th Victim Compensation Fund of 2001; it replaced the interim final rule that had taken
effect on December 21, 2001.
