Italian Insurer Reaches Settlement On Holocaust Claims

As of press time, however, it appeared the settlement was not quite resolved. An attorney for Generali said the Jan. 31 hearing adjourned with the parties agreeing to discuss “further items,” the nature of which he would not disclose.

“In effect, the two sides are huddling,” said the attorney, Marco E. Schnabl, a member of Skadden Arps Slate Meagher & Flom LLP, New York.

Judge Daniels did not set a new date for continuing the hearings, Schnabl noted.

A number of plaintiff attorneys have opposed the proposed settlement on the ground that its claims procedures would be supervised by ICHEIC, a body that was created by life insurers, including Generali.

William M. Shernoff, an attorney in Claremont, Calif., says he will opt out of the settlement on behalf of 25 families represented by his firm, Shernoff Bidart & Darras LLP.

“Because the class action is based on ICHEK evaluations, our clients feel that’s not fair because ICHEK is funded and controlled by insurers,” Shernoff said. “We will continue on with the fight. I understand that people want to settle because they are elderly and it’s better than nothing. But our clients want to get fair market value for their policies and not some handout based on ICHEK.”

Headed by former Secretary of State Lawrence Eagleburger, ICHEK says its had received more than 91,000 claims by March 2004, its deadline for filing. Of these, the commission divided $234 million among almost 16,800 people. Another 27,000 received $1,000 each.

On its Web site, the World Jewish Congress commented that if the court approved the settlement, “it will close the book for thousands of people who claim they might be beneficiaries” of life insurance policies of Nazi victims.