`Work this case out,' judge says.

Byline: Scott J. Croteau

WORCESTER - A federal judge said he wants both sides in the civil suit involving former College of the Holy Cross football coach Daniel Allen to reach a settlement by the end of the month.

Lawyers for the family of Mr. Allen, who died in May 2004 at age 48, and insurer AIG met in U.S. District Court in Worcester yesterday to discuss the proposed settlement and disagreement over certain language in the proposed agreement.

"I want this case to be settled, really settled," U.S. District Judge F. Dennis Saylor IV said in court. "I want you to work this case out."

Through e-mails, Allen family lawyer James D. Gotz and AIG lawyer Michael L. Mahoney had agreed to settle the family's lawsuit against now bankrupt Martin Surfacing for $281,250.

But there remains disagreement over language in the settlement. AIG wants the ability to make claims against Martin Surfacing's other insurer, Zurich, to recoup lawyer fees, according to the lawyers who spoke yesterday.

Zurich has agreed to settle the family's lawsuit for $400,000, Mr. Gotz said in court, but will not settle until AIG agrees not to make claims against it.

Mr. Allen's family filed the lawsuit in 2005, claiming work done by Martin Surfacing at the Holy Cross field house hastened the coach's death from amyotrophic lateral sclerosis, also known as ALS or Lou Gehrig's disease, by exposing him to neurotoxic levels of organic chemicals.

The work was done in 2001 and Mr. Allen's office was in the field house.

Judge Saylor questioned whether he had jurisdiction to enforce a settlement. He noted neither insurance company was a party in the case.

According to Mr. Gotz, Martin Surfacing had two insurers, one for pollution exclusion, which was AIG. Zurich has claimed its policy does not apply in the case.

Mr. Gotz said AIG wants the ability to recoup court costs from Zurich. AIG paid for and hired Mr. Mahoney, and Zurich has never been involved in paying for legal fees.

Judge Saylor asked all parties to return to court Sept. 29 and said he hopes the case can be closed then.

Mr. Allen was diagnosed with ALS in January 2002 and began using a wheelchair in spring 2003. He died May 19, 2004, at age 48, leaving his wife, two sons, now ages 24 and 19, and his daughter, who is 17. He stopped coaching after the 2003 season.

The Allen family claimed in the lawsuit that the alleged exposure to chemicals used during the resurfacing of the field house accelerated the coach's onset of ALS. They did not claim the chemicals caused ALS, as there is no known cause.

The lawsuit claims the exposure to chemicals cost Mr. Allen five years of his life.