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In 1994, the Law Offices of Peter G. Angelos, P.C. (the “Angelos Law Firm” or the “Firm”) reached a settlement agreement with a Baltimore-based asbestos installer named MCIC, Inc. (formerly known as McCormick Asbestos Company) and its insurers, settling thousands of its clients’ asbestos injury claims against MCIC for between $1,000 and $9,500 each (depending on the progress of disease at that time).  In the MCIC Settlement Agreement, MCIC and its insurers agreed that the settlement was for all available insurance, and they promised that if any additional insurance was discovered that was applicable to the settlement beneficiaries’ claims, they would arrange to distribute that additional insurance to the beneficiaries on a pro rata basis.  Some time during or before 1998, the Firm and its attorneys discovered that there was, in fact, substantial additional insurance applicable to the claims.  The Firm demanded that MCIC and its insurers honor their agreement to distribute that additional insurance, and when they failed to do so, the Firm brought two actions in court in Maryland—a Motion to Enforce the MCIC Settlement Agreement filed in 2002, and a Tort Action filed in 2005.  Unfortunately, the Maryland courts determined that the Firm had waited too long to bring these actions, and both actions were dismissed as time barred.

In 2021, Plaintiffs in Cynthia M. Clark ex rel. Estates of Walter F. Kacala & Helen M. Kacala, et al. v. Peter G. Angelos, et al., No. 24-C-21-000847, brought an action in the Circuit Court for Baltimore City alleging legal malpractice in connection with the MCIC Settlement Agreement.  Plaintiffs named the Angelos Law Firm and certain of its attorneys as Defendants.  Following years of intense litigation, Plaintiffs and Defendants have reached a proposed settlement of the Case for a total of $57 million, to be distributed pro rata (after fees and expenses) to over 7,000 MCIC Settlement Beneficiaries based on their injury categories as set forth in the 1994 MCIC Settlement Agreement.

Settlement payment.  Defendants will arrange for transfer of $57,000,000 into a settlement fund, a portion of which will be paid by insurance and the balance of which will be paid by the Angelos Estate.  Each MCIC Settlement Beneficiary who participates in the Settlement Class will be entitled to pro rata distributions from this settlement fund, based on that MCIC Settlement Beneficiary’s injury category as set forth in the 1994 MCIC Settlement Agreement.  After estimated attorneys’ fees and expenses, costs of administration, and incentive fees to the Class Representatives, all of which will be subject to the Court’s approval, Settlement Class Members can expect to receive approximately the following:  mesothelioma claimants (an estimate of 90 claimants) will receive approximately $31,734.80 each; lung cancer claimants (an estimate of 788 claimants) will receive approximately $14,197.15 each; other cancer claimants (an estimate of 438 claimants) will receive approximately $5,010.76 each; and non-malignancy claimants (an estimate of 6,293 claimants) will receive approximately $3,340.51 each.  These payments will be paid out over five annual installments.

Incentive fees.  The Proposed Class Settlement Agreement includes a provision, subject to the Court’s approval, awarding $10,000 incentive payments to each named Plaintiff unit, i.e., Cynthia M. Clark; Norman J. Loverde; and William J. McCarthy, Jr. and Maria M. McCarthy.  The incentive payments are in consideration of the named Plaintiffs’ substantial efforts, including in discovery, and of their valuable contributions to the overall strategy in this long-running case.  Plaintiffs’ participation, and their dedication to doing right by the absent class members, were integral to the pursuit of the case and the proposed settlement.

Costs of administration.  All costs of administration will be paid from the $57,000,000 settlement fund.

Attorneys’ fees and expenses.  Plaintiffs will request an amount equal to thirty‑three percent (33%) of the settlement fund as attorneys’ fees in this matter, together with reimbursement of expenses.  Class Counsel will file a separate motion for approval of Plaintiffs’ attorneys’ fees and expenses in advance of the Final Approval Hearing scheduled for November 22, 2024.

The legal rights of Class Members are affected whether they act or don’t act.  Read the Notice carefully.  Here are the choices of Class Members in this Class Settlement: