News in Brief

Philadelphia – A federal judge has dismissed a proposed class-action civil RICO suit against former officers and directors of the Allegheny Health Education and Research Foundation brought by charitable donors and recipients who said their money was squandered before the hospital chain ended up in bankruptcy.

In his 46-page opinion in Browne v. Abdelhak, Senior U.S. District Judge Clarence C. Newcomer found that neither group – the donors, or the recipients – has a legally protectable “property interest” in the money.

Attorneys Sherrie R. Savett & Michael J. Fantini of Berger & Montague filed the suit on behalf of a proposed class of people and organizations who provided funds to AHERF in contribution to grants or endowments “to be used for specific purposes relating to research, medicine, patient care, education, lectureships, etc.,” and a second proposed class “who were the beneficiaries or recipients of grants or endowments held by AHERF.”

The suit essentially alleged that the defendants wrongfully seized and misappropriated the class members’ restricted endowment funds and grants held in AHERF’s custody.

The alleged misuse of funds was “part of a larger fraudulent scheme by the defendants to keep AHERF afloat for as long as possible so that the defendants could continue to loot AHERF as well as plaintiffs’ funds in order to enrich themselves,” the suit alleged.

In July 1998, AHERF filed for bankruptcy court protection from creditors who were owed an estimated $1.3 billion.

$5.75 Million Verdict in Three-Vehicle Accident

Philadelphia – After deliberating less than two hours, a Philadelphia Common Pleas Court jury said a woman was entitled to $3 million to compensate her for the injuries she sustained in a car accident.

Also, attorneys representing the woman’s minor daughter were able to finalize a settlement for $2.75 million and set up a special needs fund. The child, now 8, suffers from the closed-head trauma she sustained in the accident.

Ronald S. Pollack, of the Law Offices of Ronald S. Pollack, represented the mother, Susan Krier. David M. Rapoport of Borden & Rapoport represented the woman’s daughter, Jessica. Detroit attorneys John Philo and David Whitaker assisted Rapoport in the case.

On June 12, 1996, Krier was driving southbound on B Street, just south of the intersection with Erie Avenue in Philadelphia, when a tractor-trailer driven by Eddie Blue and owned by Jefferson Smurfit Corp. moved from the left lane to the right lane into Krier’s path, Pollack said.

Krier tried to avoid striking the tractor-trailer by braking and moving to the left. But she wasn’t able to avoid an impact, and the right front of her vehicle struck the rear left of the truck.

As her car started to spin from the crash, a van that was behind Krier struck her. The van was driven by Zarif Abdel-Jaber. Both Krier and her daughter had to be extricated from their car.

Krier suffered from a number of injuries, including a nasal bone fracture, right hip dislocation, fracture of the acetabulum, or the bone making up the back of the hip socket, fracture of her right femur, traumatic injury to the cartilage behind her kneecap and collapse of both lungs.

She still has problems with her right hip, which could eventually lead to other serious conditions, Pollack said.

Both Blue and Jefferson Smurfit settled with Krier prior to trial, so the case proceeded solely against Abdel-Jaber. Swartz Campbell & Detweiler attorney Robert B. Mulhern represented Blue and Jefferson Smurfit.

Banks and Insurance Cos. Could Get Tax Breaks