A federal judge has delayed the resolution of legal claims by thousands of New York City workers who took part in rescue and recovery operations following the Sept. 11 attacks. The judge ordered further negotiations, saying the $657.5 million was too low.

NPR's Robert Smith reported the following for the network's newscast:

The settlement deal between the City of New York and clean-up workers was hammered out last week. Ten thousand police, firemen and construction workers had sued the city because of health problems from inhaling the dust from the World Trade Center. The city's special insurance fund offered up to $657 million as compensation.

 

The hearing before Judge Alvin Hellerstein was considered a formality, but he surprised lawyers by sending them back to the negotiation table. He said that the deal didn't contain enough money for workers. Hellerstein also expressed concern over legal fees that could eat up a third of the payments.

The deal still needed to be approved by 95 percent of the 10,000 workers who brought lawsuits against the city. Lawyers for the parties in the case say they are looking at what the judge said and considering their next steps.