Kenneth Feinberg
Encyclopedia
Kenneth Feinberg is an American attorney
, specializing in mediation
and alternative dispute resolution
. Feinberg was appointed Special Master
of the U.S. government's September 11th Victim Compensation Fund
and currently serves as the Special Master for TARP Executive Compensation, popularly called the "pay czar." Additionally, Feinberg currently serves as the government-appointed administrator of the BP Deepwater Horizon Disaster Victim Compensation Fund. He is also an adjunct professor at the Columbia University School of Law, University of Pennsylvania Law School
, Georgetown University Law Center
, New York University School of Law
, the University of Virginia School of Law
and at the Benjamin N. Cardozo School of Law
.
, he received a Bachelor of Arts
from the University of Massachusetts-Amherst in 1967 and a law degree
from the New York University School of Law
in 1970. He worked for five years as an administrative assistant and chief of staff for U.S. Senator Ted Kennedy
and as a prosecutor for the U.S. Attorney General. Before founding his own firm The Feinberg Group (now Feinberg Rozen, LLP) in 1993, he was a founding partner at the Washington office of Kaye Scholer LLP
.
Feinberg has served as Court-Appointed Special Settlement Master in cases including Agent Orange
product liability
litigation, Asbestos Personal Injury Litigation
and DES
Cases. Feinberg was also one of three arbitrators who determined the fair market value of the Zapruder film
of the Kennedy assassination
and was one of two arbitrators who determined the allocation of legal fees in the Holocaust slave labor litigation. He is a former Lecturer-in-Law at a number of U.S. law schools.
to be Special Master of the fund, Feinberg worked for 33 months entirely pro bono
. He developed the regulations governing the administration of the fund and administered all aspects of the program, including evaluating applications, determining appropriate compensation and disseminating awards.
Early in the process he was described as aloof and arrogant. Feinberg was subjected to some very public criticism at meetings, in the media and on Web sites. "I underestimated the emotion of this at the beginning", Feinberg has said. "I didn't fully appreciate how soon this program had been established after 9/11, so there was a certain degree of unanticipated anger directed at me that I should have been more attuned to."
It was up to Feinberg to make the decisions on how much each family of a 9/11 victim would receive. Feinberg had to estimate how much each victim would have earned in a full lifetime. If a family accepted the offer, it was not possible to appeal. Families unhappy with the offer were able to appeal in a nonadversarial, informal hearing to present their case however they wanted. Feinberg personally presided over more than 900 of the 1,600 hearings. At the end of the process, $7 billion was awarded to 97 percent of the families.
"It's a brutal, sort of cold, thing to do. Anybody who looks at this program and expects that by cutting a U.S. Treasury check, you are going to make 9/11 families happy, is vastly misunderstanding what's going on with this program," said Feinberg. "There is not one family member I've met who wouldn't gladly give back the check, or, in many cases, their own lives to have that loved one back. 'Happy' never enters into this equation."
Feinberg was able to change the mind of some of his harshest critics. Charles Wolf, whose wife died in the north tower, renamed his highly critical Web site called "Fix the Fund" to "The Fund is Fixed!". At first he called Feinberg "patronizing, manipulative and at times, even cruel." Later he said, "To have one of your sharpest critics follow through on a promise and not only join the program he was criticizing, but promote it to his peers, says a lot about you and the way you have adjusted both the program and your attitude...Today, I have complete faith in you."
In 2005 his book, titled "What is Life Worth?: The Unprecedented Effort to Compensate the Victims of 9/11," was published.
Feinberg wrote that a widow of one firefighter cursed him “I spit on you, and your children.” for being unfair in his compensation awards .
On June 17, 2005, he was honored by his hometown of Brockton by having a road named after him: Attorney Ken Feinberg Way.
, on the Virginia Tech Campus. Feinberg and the university plan to disseminate a set of proposals for comment about distributions to the families in mid-July. The victims or families will have options on the ultimate uses of the funds. Payments would be completed sometime during the fall.
Treasury Secretary Timothy Geithner, in a statement about Feinberg's rulings on executive pay, said, "We all share an interest in seeing these companies return taxpayer dollars as soon as possible, and Ken today has helped bring that day a little bit closer."
President Obama said that the $20 billion from BP "will not be controlled by either BP or by the government. It will be put in an escrow account administered by an impartial, independent third party." Obama said he and BP's chairman, Carl-Henric Svanberg, agreed on having Kenneth Feinberg administer the fund. (Feinberg was also selected by Obama to oversee the compensation of top executives at bailed out banks.)
BP is currently paying Feinberg's six-lawyer Washington, D.C., firm, Feinberg Rozen, a flat fee of $1,250,000 a month for labor and overhead costs, but the full details of compensation are unknown. Feinberg has come under harsh criticism from public interest groups for refusing to disclose the amount of his compensation or the details of his arrangement with the company.
On December 6, 2010, the Center for Justice & Democracy
(CJ&D) sent a letter to Robert Dudley, the CEO of BP, concerning "serious new issues raised about the lack of transparency and potential conflicts of interest related to the administration of the Gulf Coast Claims Facility." In the letter, CJ&D pointed out actions taken by Feinberg in the administration of the compensation fund that point to serious conflicts of interest:
The letter also criticized Feinberg's lack of transparency around compensation:
Lawyer
A lawyer, according to Black's Law Dictionary, is "a person learned in the law; as an attorney, counsel or solicitor; a person who is practicing law." Law is the system of rules of conduct established by the sovereign government of a society to correct wrongs, maintain the stability of political...
, specializing in mediation
Mediation
Mediation, as used in law, is a form of alternative dispute resolution , a way of resolving disputes between two or more parties. A third party, the mediator, assists the parties to negotiate their own settlement...
and alternative dispute resolution
Alternative dispute resolution
Alternative Dispute Resolution includes dispute resolution processes and techniques that act as a means for disagreeing parties to come to an agreement short of litigation. ADR basically is an alternative to a formal court hearing or litigation...
. Feinberg was appointed Special Master
Special master
In law, a special master is an authority appointed by a judge to make sure that judicial orders are actually followed.In England, at common law, there were "Masters in Chancery," who acted in aid of the Equity Courts. There were also "Masters in Lunacy," who conducted inquiries of the same nature...
of the U.S. government's September 11th Victim Compensation Fund
September 11th Victim Compensation Fund
The September 11th Victim Compensation Fund was created by an Act of Congress, the AirTransportation Safety and System Stabilization Act , shortly after 9/11 to compensate the victims of the attack in exchange for their agreement not to sue the airline corporations involved...
and currently serves as the Special Master for TARP Executive Compensation, popularly called the "pay czar." Additionally, Feinberg currently serves as the government-appointed administrator of the BP Deepwater Horizon Disaster Victim Compensation Fund. He is also an adjunct professor at the Columbia University School of Law, University of Pennsylvania Law School
University of Pennsylvania Law School
The University of Pennsylvania Law School, located in Philadelphia, Pennsylvania, is the law school of the University of Pennsylvania. A member of the Ivy League, it is among the oldest and most selective law schools in the nation. It is currently ranked 7th overall by U.S. News & World Report,...
, Georgetown University Law Center
Georgetown University Law Center
Georgetown University Law Center is the law school of Georgetown University, located in Washington, D.C.. Established in 1870, the Law Center offers J.D., LL.M., and S.J.D. degrees in law...
, New York University School of Law
New York University School of Law
The New York University School of Law is the law school of New York University. Established in 1835, the school offers the J.D., LL.M., and J.S.D. degrees in law, and is located in Greenwich Village, in the New York City borough of Manhattan....
, the University of Virginia School of Law
University of Virginia School of Law
The University of Virginia School of Law was founded in Charlottesville in 1819 by Thomas Jefferson as one of the original subjects taught at his "academical village," the University of Virginia. The law school maintains an enrollment of approximately 1,100 students in its initial degree program...
and at the Benjamin N. Cardozo School of Law
Benjamin N. Cardozo School of Law
The Benjamin N. Cardozo School of Law is the law school of Yeshiva University, located in the New York City borough of Manhattan. The school is named for Supreme Court Justice Benjamin N. Cardozo. Cardozo's success as a young school has been remarkable, leading some to characterize Cardozo as a...
.
Life and career
Originally from Brockton, MassachusettsBrockton, Massachusetts
Brockton is a city in Plymouth County, Massachusetts, United States; the population was 93,810 in the 2010 Census. Brockton, along with Plymouth, are the county seats of Plymouth County...
, he received a Bachelor of Arts
Bachelor of Arts
A Bachelor of Arts , from the Latin artium baccalaureus, is a bachelor's degree awarded for an undergraduate course or program in either the liberal arts, the sciences, or both...
from the University of Massachusetts-Amherst in 1967 and a law degree
Law degree
A Law degree is an academic degree conferred for studies in law. Such degrees are generally preparation for legal careers; but while their curricula may be reviewed by legal authority, they do not themselves confer a license...
from the New York University School of Law
New York University School of Law
The New York University School of Law is the law school of New York University. Established in 1835, the school offers the J.D., LL.M., and J.S.D. degrees in law, and is located in Greenwich Village, in the New York City borough of Manhattan....
in 1970. He worked for five years as an administrative assistant and chief of staff for U.S. Senator Ted Kennedy
Ted Kennedy
Edward Moore "Ted" Kennedy was a United States Senator from Massachusetts and a member of the Democratic Party. Serving almost 47 years, he was the second most senior member of the Senate when he died and is the fourth-longest-serving senator in United States history...
and as a prosecutor for the U.S. Attorney General. Before founding his own firm The Feinberg Group (now Feinberg Rozen, LLP) in 1993, he was a founding partner at the Washington office of Kaye Scholer LLP
Kaye Scholer LLP
Kaye Scholer is a law firm founded in 1917 by Benjamin Kaye and Jacob Scholer. The firm has more than 450 attorneys in nine offices located in the cities of Chicago, Frankfurt, London, Los Angeles, New York , Shanghai, Palo Alto, Washington, D.C., and West Palm Beach.-Reputation and...
.
Feinberg has served as Court-Appointed Special Settlement Master in cases including Agent Orange
Agent Orange
Agent Orange is the code name for one of the herbicides and defoliants used by the U.S. military as part of its herbicidal warfare program, Operation Ranch Hand, during the Vietnam War from 1961 to 1971. Vietnam estimates 400,000 people were killed or maimed, and 500,000 children born with birth...
product liability
Product liability
Product liability is the area of law in which manufacturers, distributors, suppliers, retailers, and others who make products available to the public are held responsible for the injuries those products cause...
litigation, Asbestos Personal Injury Litigation
Asbestos and the law
This article concerns asbestos-related legal and regulatory issues. Litigation related to asbestos injuries and property damages has been claimed to be the longest-running mass tort in U.S. history...
and DES
Diethylstilbestrol
Diethylstilbestrol is a synthetic nonsteroidal estrogen that was first synthesized in 1938. Human exposure to DES occurred through diverse sources, such as dietary ingestion from supplemented cattle feed and medical treatment for certain conditions, including breast and prostate cancers...
Cases. Feinberg was also one of three arbitrators who determined the fair market value of the Zapruder film
Zapruder film
The Zapruder film is a silent, color motion picture sequence shot by private citizen Abraham Zapruder with a home-movie camera, asU.S. President John F...
of the Kennedy assassination
John F. Kennedy assassination
John Fitzgerald Kennedy, the thirty-fifth President of the United States, was assassinated at 12:30 p.m. Central Standard Time on Friday, November 22, 1963, in Dealey Plaza, Dallas, Texas...
and was one of two arbitrators who determined the allocation of legal fees in the Holocaust slave labor litigation. He is a former Lecturer-in-Law at a number of U.S. law schools.
September 11 Victim Compensation Fund
Appointed by Attorney General John AshcroftJohn Ashcroft
John David Ashcroft is a United States politician who served as the 79th United States Attorney General, from 2001 until 2005, appointed by President George W. Bush. Ashcroft previously served as the 50th Governor of Missouri and a U.S...
to be Special Master of the fund, Feinberg worked for 33 months entirely pro bono
Pro bono
Pro bono publico is a Latin phrase generally used to describe professional work undertaken voluntarily and without payment or at a reduced fee as a public service. It is common in the legal profession and is increasingly seen in marketing, technology, and strategy consulting firms...
. He developed the regulations governing the administration of the fund and administered all aspects of the program, including evaluating applications, determining appropriate compensation and disseminating awards.
Early in the process he was described as aloof and arrogant. Feinberg was subjected to some very public criticism at meetings, in the media and on Web sites. "I underestimated the emotion of this at the beginning", Feinberg has said. "I didn't fully appreciate how soon this program had been established after 9/11, so there was a certain degree of unanticipated anger directed at me that I should have been more attuned to."
It was up to Feinberg to make the decisions on how much each family of a 9/11 victim would receive. Feinberg had to estimate how much each victim would have earned in a full lifetime. If a family accepted the offer, it was not possible to appeal. Families unhappy with the offer were able to appeal in a nonadversarial, informal hearing to present their case however they wanted. Feinberg personally presided over more than 900 of the 1,600 hearings. At the end of the process, $7 billion was awarded to 97 percent of the families.
"It's a brutal, sort of cold, thing to do. Anybody who looks at this program and expects that by cutting a U.S. Treasury check, you are going to make 9/11 families happy, is vastly misunderstanding what's going on with this program," said Feinberg. "There is not one family member I've met who wouldn't gladly give back the check, or, in many cases, their own lives to have that loved one back. 'Happy' never enters into this equation."
Feinberg was able to change the mind of some of his harshest critics. Charles Wolf, whose wife died in the north tower, renamed his highly critical Web site called "Fix the Fund" to "The Fund is Fixed!". At first he called Feinberg "patronizing, manipulative and at times, even cruel." Later he said, "To have one of your sharpest critics follow through on a promise and not only join the program he was criticizing, but promote it to his peers, says a lot about you and the way you have adjusted both the program and your attitude...Today, I have complete faith in you."
In 2005 his book, titled "What is Life Worth?: The Unprecedented Effort to Compensate the Victims of 9/11," was published.
Feinberg wrote that a widow of one firefighter cursed him “I spit on you, and your children.” for being unfair in his compensation awards .
On June 17, 2005, he was honored by his hometown of Brockton by having a road named after him: Attorney Ken Feinberg Way.
Hokie Spirit Memorial Fund
On July 5, 2007, it was announced that Feinberg would work pro bono as the chief administrator to the Hokie Spirit Memorial Fund (HSMF). The HSMF was set up by the Virginia Tech Foundation in the aftermath of the events of April 16, 2007Virginia Tech massacre
The Virginia Tech massacre was a school shooting that took place on April 16, 2007, on the campus of Virginia Polytechnic Institute and State University in Blacksburg, Virginia, United States. In two separate attacks, approximately two hours apart, the perpetrator, Seung-Hui Cho, killed 32 people...
, on the Virginia Tech Campus. Feinberg and the university plan to disseminate a set of proposals for comment about distributions to the families in mid-July. The victims or families will have options on the ultimate uses of the funds. Payments would be completed sometime during the fall.
Special Master for Executive Compensation
On June 10, 2009, Feinberg was appointed by the U.S. Treasury Department to oversee the compensation of top executives at companies which have received federal bailout assistance. As part of his policies, he has suggested to many bank executives that they emphasize long-term stock compensation rather than cash payments.Treasury Secretary Timothy Geithner, in a statement about Feinberg's rulings on executive pay, said, "We all share an interest in seeing these companies return taxpayer dollars as soon as possible, and Ken today has helped bring that day a little bit closer."
BP Oil Spill Fund
On June 16, 2010, it was reported that Feinberg was to run a $20 billion fund to pay claims for the BP oil spill.President Obama said that the $20 billion from BP "will not be controlled by either BP or by the government. It will be put in an escrow account administered by an impartial, independent third party." Obama said he and BP's chairman, Carl-Henric Svanberg, agreed on having Kenneth Feinberg administer the fund. (Feinberg was also selected by Obama to oversee the compensation of top executives at bailed out banks.)
BP is currently paying Feinberg's six-lawyer Washington, D.C., firm, Feinberg Rozen, a flat fee of $1,250,000 a month for labor and overhead costs, but the full details of compensation are unknown. Feinberg has come under harsh criticism from public interest groups for refusing to disclose the amount of his compensation or the details of his arrangement with the company.
On December 6, 2010, the Center for Justice & Democracy
Center for Justice & Democracy
Center for Justice & Democracy is a non-profit, non-partisan consumer rights organization exclusively dedicated to educating the public about the importance of the U.S...
(CJ&D) sent a letter to Robert Dudley, the CEO of BP, concerning "serious new issues raised about the lack of transparency and potential conflicts of interest related to the administration of the Gulf Coast Claims Facility." In the letter, CJ&D pointed out actions taken by Feinberg in the administration of the compensation fund that point to serious conflicts of interest:
- "Mr. Feinberg, employed by BP, has decided on his own authority that all claims recipients must release all companies who caused this disaster from any and all legal responsibility, no matter how grossly negligent they were. This sweeping release, which assigns victims’ claims to BP, benefits only one actor: BP – the company that happens to pay Mr. Feinberg’s salary.". In January of 2011, Judge Barbier, the federal judge over the oil spill litigation, after hearing evidence and arguments of the attorneys, ruled that Kenneth Feinberg was not independent of BP and could no longer claim to be so. Feinberg had been telling victims he was their lawyer and did not answer to BP.
The letter also criticized Feinberg's lack of transparency around compensation:
- "Despite repeated calls for the release of documents establishing the formal relationship between BP and Feinberg Rozen, as well as its subcontractors who are reviewing and adjudicating claims, almost nothing has been publicly released. And now we learn, as reported by Reuters on November 22, 2010, that BP and Feinberg Rozen consider their arrangement “verbal,” i.e., they have not committed to writing the firm’s compensation arrangement so there can be no public examination of it. Is the public to believe that there is no paper evidence at all documenting a $10 million per year financial arrangement between BP and Feinberg Rozen? What about the contracts between BP, Feinberg Rozen and the subcontractors who are advising and adjudicating claims and also being paid directly by BP? Surely these contracts must be in writing and released … This failure to release the terms of all these financial arrangements under circumstances of tremendous historic and public significance is simply unacceptable."
External links
- Katz, Lee Michael. "What I've Learned: Kenneth Feinberg", Washingtonian, March 1, 2008.
- The Feinberg Group website
- Kaye Scholer LLP website