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Sep. 1--After losing her husband in the World Trade Center attacks, Laura Balemian turned to a Huntington lawyer to help her assure financial security for her children.
The lawyer, Thomas Troiano, 62, helped her get that security with an award of $6.7 million. But in the end, Troiano collected the highest legal fee of any attorney representing a 9/11 family trying to collect from a federal compensation fund, officials say. In fact, at $2.2 million, he received more than most of 7,300 victims' families collected themselves.
Now, years after agreeing to pay the fee, Balemian wants her money back.
"I don't think anybody charged half that," said Kenneth Feinberg, the federally appointed special master who oversaw the fund. He called Troiano's fee "shocking and unconscionable."
However, Troiano points out that the award he won for Balemian, 44, was among the highest. He has filed a federal lawsuit against the widow, accusing her of behaving "greedily" in trying to have his fee overturned in Suffolk Surrogate Court. His suit seeks to prevent his fee from being taken away from him.
"We didn't sue him. So talk about 'greedy,'" said Balemian's lawyer, Kevin Simmons of Syosset, who called Troiano's fee "swollen and exorbitant."
The government's September 11 Victim Compensation Fund set a non-binding guideline for attorneys' fees of no more than 5 percent of any award. Feinberg said more than 3,000 families were represented for free or for "single-digit" percentages. The fund used a formula that included presumed loss of future earnings, as well as compensation for pain and suffering.
Feinberg agreed that Balemian's award was among the highest paid, but said it was "far from" the single highest of $8.6 million, given to Deborah Mardenfeld of Manhattan, who survived with severe burns over much of her body, several broken bones and other injuries. Her attorney, Guy Smiley of Manhattan, did not collect a fee. Suggesting that high awards were a direct result of legal representation "greatly overstates the role of the lawyer," Feinberg said.
Balemian, of Lloyd Harbor, and Troiano both declined to be interviewed for this story.
Balemian's husband, Edward Mardovich, 41, was the president of Eurobrokers Inc.'s securities division, Maxcor Financial Inc. -- on the 84th floor of the World Trade Center's south tower -- when he was killed. Soon after, Balemian, who remarried seven months after his death, went to Troiano for help for herself and her four children, who range in age from 13 to 19. Troiano had her sign a retainer that included his one-third contingency fee.
After first considering possible lawsuits to compensate Balemian, Troiano said in court documents that he filed a claim with the fund in 2003. The fund's initial offer to Balemian was about $1.1 million. Troiano's attorney, Michael Rakower of Manhattan, said Troiano then went "far above the call of duty" in trying to get her more money -- hiring an economist to figure Mardovich's future earning potential and presenting witnesses at a hearing to contest the award. Later that year, Balemian was awarded $6,656,151.
Rakower said Balemian "happily" paid Troiano his "well-earned" $2.2 million in 2004. "It's apparent that she was both thrilled with his efforts and pleased with the terms of her agreement," Rakower said.
But as part of a Surrogate Court review of Mardovich's estate that started last year, Balemian has challenged the fee as excessive. Troiano responded with his suit.
In one court filing, Troiano stated that Balemian "ought to be happily praising his extraordinary efforts" rather than "greedily seeking" her money back.
A federal judge ruled last month that it was up to the Surrogate Court to rule on the propriety of Troiano's fee.
"To charge a third I felt was wrong," said Feinberg, who gave an affidavit in support of Balemian. He said the biggest problem with charging a contingency fee in this case was that it wasn't "contingent" on anything. Fund claimants were guaranteed a monetary reward, so attorneys were never at risk of working for nothing.
While Rakower said his client hopes for an amicable resolution and "is open to compromise," he said Troiano's two-year dedication to Balemian's case was "far in excess of the norm" from other attorneys handling the case.
But Douglas Good of Uniondale, president of the Nassau Bar Association, said that as with many things, with legal services one gets what one pays for. Some families may have preferred the level of service they would receive with a standard retainer. And there was nothing necessarily wrong with an attorney charging that, Good said.
Fund payouts
The September 11th Victim Compensation Fund offered federal compensation as an alternative to litigation.
More than 7,300 claims were processed in the fund, including 2,880 out of 2,973 possible death claims.
More than 98 percent of eligible families participated in the fund.
The average award for families of deceased victims was $2,082,128.
The fund paid out about $7 billion.
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Copyright (c) 2006, Newsday, Melville, N.Y.
Distributed by McClatchy-Tribune Business News.
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