Armenian, Assyrian and Hellenic Genocide News

Armenian Genocide heirs get $10 million settlement
by Matthew Kreamer, The Fresno Bee - April 12, 2001
Posted: Saturday, April 14, 2001 00:05 am CST

An insurance company will pay at least $10 million to the heirs of thousands killed during the Armenian Genocide, according to a lawsuit settlement announced Wednesday.

The settlement, agreed to in principle but not yet official, ends a 1999 lawsuit against New York Life Insurance, which sold several thousand policies to Armenians in the Turkish Ottoman Empire shortly before World War I.

Shortly after the war began, more than a million Armenians were slaughtered by the Turks. But claims made by the heirs of those insured were never paid, partly because the heirs did not have paperwork proving the insurance policies and could provide no death certificates. Lists of those insured were never made available.

That will all change.

Under the settlement, New York Life will make the list available. It also will advertise the settlement in newspapers across the country and possibly the world.

That's an abrupt turnaround from September, when company Vice President William Werfelman told The Bee that no such existed.

Brian Kabateck, a Los Angeles lawyer who filed the class-action lawsuit, said he was told the list was compiled through a review of microfiche and policy cards generations old.

"They've invited us to verify the accuracy of the list, and we're going to do that," he said.

The settlement will require that New York Life pay valid claimants 10 times the face value amount of the original policy. The company also will pay at least $3 million to Armenian civic organizations to be determined later.

At least $10 million will be paid because, if the total payout to claimants is less than $7 million, New York Life's civic contribution would increase to make up the difference, Kabateck said.

Werfelman called the agreement "a reflection of New York Life's 156-year history of integrity and humanity."

"We're proud that New York Life has thousands of Armenian-Americans as policyholders today," Werfelman said. "We also know that resolving this insurance matter can do little to close a very sad chapter in history for Armenians and people of Armenian descent. One can only imagine how painful the tragic events of 1915 in the Ottoman Empire must be to the Armenian community. New York Life is glad to be doing what it can."

Locally, Armenian leaders were ecstatic when told of the settlement.

"That's fantastic!" said the Rev. Arshen Aivazian of St. Paul Armenian Church in Fresno. "The community will be elated. There are probably people in the Valley who are covered by it."

Aivazian said the importance of the settlement is not found in the monetary gain by Armenians.

"The amount is not really the issue," he said. "The issue is that New York Life finally admitted that it has some unsettled claims from genocide victims. It brings justice."

The settlement was aided by a bill written by state Sen. Chuck Poochigian, R-Fresno, and signed into law by Gov. Davis last year. The bill allowed heirs of genocide victims to sue insurance companies that have not paid claims. The bill also extended the statute of limitations on the claims to 2010.

The bill ended New York Life's attempt to have the lawsuit dismissed on the grounds that the statute of limitations had expired.

"I certainly was gratified by the encouragement that I had been given for carrying the legislation," Poochigian said Wednesday. "I'm pleased that leadership at New York Life made this decision to do the right thing and pay these claims."

Several other insurance companies, including Equitable Life of New York (now named AXA Advisors) and French Union-Vie, sold similar policies but were not named in the lawsuit.

Lawyer Kabateck indicated that similar lawsuits against those and other companies could be in the works, but said nothing has been filed.

"That's something to look at," he said, "but for now we're happy we got New York Life to agree, which has only taken 85 years."

The reporter can be reached at mkreamer@fresnobee.com or 441-6208.

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