The city is locked in battle with thousands of Ground Zero workers who are demanding a piece of a $1 billion fund created to pay claims against New York City and its contractors arising from the cleanup of post-9/11 debris.
More than 7,000 rescue workers, volunteers and other laborers have joined in a class-action suit, filed in September 2004, that claims they became ill toiling in the toxic ruins.
They charge that the city failed to protect them, to reveal the full extent of the health risks and to enforce safety rules. They seek compensation for their illnesses, some potentially fatal, and medical monitoring for all who worked on or near the pit.
The plaintiffs argue that Congress created the insurance fund, with the support of the mayor and the governor, specifically to compensate city employees and others harmed during debris removal.
The city has refused an offer by U.S. District Judge Alvin Hellerstein to let mediators settle the mounting worker claims, lawyers said.
The $1 billion in insurance was part of $21.4 billion in federal aid pledged to the city by President Bush after 9/11.
Gov. Pataki and Mayor Bloomberg pushed through state legislation in 2003 to create a "captive insurance fund," a mechanism to reserve the $1 billion set aside for claims against the city and its contractors for debris removal at Ground Zero.
