News In Brief

The federal judge overseeing the $716 million settlement with 9/11 first responders has ordered a hearing on interest expenses charged by the plaintiffs’ lawyers. The one-page order, filed Wednesday, followed an article last week in the New York Post reporting that law firm Worby Groner Edelman & Napoli Bern was charging its clients to cover loans the firm took out to finance the litigation with 6 percent to 18 percent interest rates. Southern District Judge Alvin K. Hellerstein has now ordered a hearing on the expenses for Aug. 20. “My attention has been drawn to a category of expense intended to be applied to plaintiffs’ settlement recovery labeled ‘interest on funds borrowed by law firm’” Judge Hellerstein wrote. “The reasonableness and appropriateness of this expense has not yet been shown.”

The judge’s order did not come in response to any motion in the litigation. Paul Napoli, a partner at Worby Groner, which is plaintiffs’ co-liaison counsel, said it seems the judge “takes his cues from the New York Post.” Worby Groner must file a response by Aug. 18. Mr. Napoli said he understood that Judge Hellerstein wanted to review ethics opinions issued by bar groups in New York and other states to see “what’s proper and look at them himself.” A 2002 New York State Bar Association ethics opinion said lawyers could borrow to finance litigation expenses and pass the interest costs on to the client.