ARMENIANS' KIN TO SHARE MILLIONS.

Byline: Naush Boghossian Staff Writer

GLENDALE - Descendants of Armenians who perished in the genocide of 1915 will share in a $20 million settlement with New York Life Insurance Co. - the result of a long-running class-action suit, attorneys announced Wednesday.

The settlement, which likely will affect hundreds of Southland residents, including those from Glendale's large Armenian community, also calls for payouts to nine Armenian civic organizations.

Lead plaintiff Martin Marootian, 87, of La Canada Flintridge, whose mother began trying to collect on a brother-in-law's policy in 1923, said he was pleased that heirs of policyholders will finally be compensated.

``This has been a long and difficult process for my family and me. As the lead plaintiff, it was important for me to see this matter through to the end,'' Marootian said.

``While no amount of money will compensate families for the hardships they suffered following the genocide, the settlement is a significant landmark,'' he said.

The $20 million settlement - which includes $4 million for the plaintiffs' attorneys, $2 million in administrative costs and $3 million for charitable organizations - would leave $11 million to pay the holders of more than 2,000 policies. In 1915, those policies were valued at about $1.1 million.

``Our willingness today to resolve policies that may remain unpaid from that era shows that New York Life adheres to the same values of integrity and humanity that guided us then,'' said Sy Sternberg, chairman and chief executive of New York Life.

Officials at the Armenian Church of North America Western Diocese in Burbank - one of the groups to share in the $3 million fund - said the money would pay for children's programs and to help women in shelters.

``I think it is right and just that they're approaching the churches because churches are the center of Armenian community life,'' said Archbishop Hovnan Derderian. ``In as much as we have a responsibility in accepting these funds, I think the insurance company has a moral obligation to make sure the funds are used properly.''

California Insurance Commissioner John Garamendi will appoint three members to a settlement fund board, which will evaluate each claim. A court then has to approve the settlement, scheduled for July 30.

Potential claimants will be informed by a court-approved notice or they can call [phone] for more information.

Prior to 1915, New York Life sold thousands of life insurance policies to ethnic Armenians in the Turkish Ottoman Empire, but many who bought the policies were among the estimated 1.5 million Armenians massacred during the genocide.

Many of the rightful policy heirs were unable to obtain the insurance proceeds, while others were unaware that they were entitled to any insurance benefits.

Marootian, along with 12 other plaintiffs, filed suit in November 1999 in federal District Court in Los Angeles, asking that New York Life divulge the names of Armenians who purchased life insurance policies in the Ottoman Empire and to properly compensate the beneficiaries of those policies.

Both parties were very close to reaching a resolution in 2001, but talks broke down.

Mark Geragos, one of the plaintiffs' attorneys, said the settlement is an ``extremely fair resolution'' and a highlight in his career.

``It's some of the proudest work I've done in my 20 years as a lawyer,'' said Geragos, a Glendale resident of Armenian descent.

``This is the first time that a case regarding a genocide has been settled in a courtroom in the U.S., and we think it's highly significant and it's the first step toward going to other companies and getting them to step up to the plate and turn over the money owed to generations who suffered from this horrific crime against humanity. They stepped up to the plate and did what was right.''

But while the plaintiffs' attorneys praised the outcome, some are questioning whether it is fair.

``I think we need some answers on why this is a fair settlement - the way they've structured it, particularly with expenses being built into the total amount that could eat a great deal of that money,'' said Ben Nutley, an attorney representing a class member.

Naush Boghossian, [phone]

naush.boghossian(at)dailynews.com

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Photo:

(ran in Glen/Bur edition only) Martin Marootian, 88, and his wife, Seda, show a photo and life insurance policy bought by Martin's uncle in 1910.

John Lazar/Staff Photographer