THE PLAIN DEALER
CLEVELAND, THURSDAY, JULY 20, 2006
BWC to pay $52 million class-action judgment
By James F. McCarty
PLAIN DEALER REPORTER
After seven years of litigation, a team of Cleveland lawyers won a $52 million class-action Wednesday on behalf of 8,000 workers who sued the Ohio Bureau of Worker's Compensation.
Even after the Ohio Supreme Court ruled in 2004 that the bureau's practice of reclaiming money paid by third parties to injured workers was unconstitutional, it took the bureau more than a year to agree to pay back the millions of wrongly collected dollars.
"It's the state of Ohio," said plaintiffs' attorney Patrick Perotti. "It takes a long time to turn around a ship that big."
The bureau claimed the money from workers from throughout the state between 1995 and 2001. A bureau spokesman said the money was held in reserve and would not damage the department's bottom line, which already is reeling from failed investments in rare coins and hedge funds.
Perotti and his co-counsel, Craig Bashein, called the judgment unprecedented in the state, taking into account the size of the damages to be paid, the size of the payouts expected, and the 100 percent returns to be paid to the workers.
In most class action suits, the plaintiffs receive only a percentage of their losses, often as little as 10 percent, the lawyers said. And the class members usually have to share in the expenses and legal fees - costs that won't be borne by the plaintiffs in this case.
The plaintiffs' attorneys - four firms worked on the case - will receive 30 percent of the $52 million damage award.
"This judgment will put the money back into the hands of the workers who were impaired, and many of whom died, whose widows and children are in desperate need of these funds," Bashein said.
He was referring to people like Emily Bartoszewicz of South Euclid, whose husband, Anthony, 50, died in an automobile accident in 1998. She never knew whether the accident was the result of an injury he received a year before while working at an auto body shop that left him partially blind.
Now she has two children in college and three grandchildren living at her home.
"That is great news," she said after learning about the judgment. "The money's really going to help me with my situation here."
And people like Donald Wearsch, 68, of North Olmsted, who fell and broke his shoulder while inspecting a factory for an insurance claim. Now he's retired, and looking forward to receiving his refund to help pay for home improvements.
"I was surprised when they pursued this case in court, but I was glad they did," Wearsch said. "I'm just happy to hear it's finally over."
The attorneys credited the named plaintiff, Angel Santos, for his fortitude. The bureau demanded that Santos, who lost three fingers in a stamp-press accident, repay it $122,000 after he won a $500,000 settlement from his Cleveland employer.
The bureau's lawyers eventually offered to repay Santos if he would drop the class-action suit. Santos declined.
"Angel was a hero," Perotti said. "He stood up for the rights of everyone."
Cuyahoga County Common Pleas Judge Michael Donnelly appointed attorney James McMonagle to administer the $52 million fund and to oversee the dispersal of the money. Donnelly will decide any disputes over the next five years.
Notices will be mailed to every known member of the class during the next 60 days with instructions on how to apply for repayments. Advertisements will also be placed in newspapers throughout the state seeking additional workers who may be eligible for refunds.
The bureau is required to mail repayment checks within 45 days of receiving properly prepared application forms.
Workers or survivors who think they are eligible to receive refunds but have not received a notice from the court can call the bureau toll-free at 1-800-335-0996.
