On today’s six-year anniversary of the TWA Flight 800 crash off Long Island, 226 claims have been settled against the airline and the plane’s manufacturer – all except for one lone holdout.
The family of Clyde Kirk Rhein, the high-powered CEO of Danielson Holding Co. of New York, who was also president of an investment firm he founded, has failed to reach an agreement with Boeing, a lawyer for the family said.
Rhein, 43 at the time of the catastrophic incident – which left 230 dead – was worth at least $9 million then, his share of 9 percent of Danielson.
Boeing so far has paid out in excess of $500 million in settlements, according to a source close to the litigation.
But the Rhein case may be the stickiest of all.
The family’s lawyer, Frank Granito Jr., said numerous issues are being negotiated – including future earnings.
“It’s hard to predict what would have happened over the next 20 or 30 years,” said Granito of that sticking point, before indicating Boeing was digging in at the amount sought by the family.
“But some cases are so large that defendants have a hard time swallowing the pill,” Granito said.
Boeing is in the process of “overturning every rock and subpoenaing every business record” of his client, Granito said. The lawyer said he was drawing the line at surrendering information about matters relating to Clyde Rhein after he had died.
“They continue to want more, something that I resist,” said Granito.
In settling all other claims, Boeing has never conceded liability. And none has gone to trial – but this could be the first.
Federal Judge John Sweet, who has overseen the massive settlements, has scheduled Sept. 17 for possible mediation if the parties cannot reach an agreement before then, the judge’s office said. If mediation does not work, Sweet can order the trial.