Full opinion text
JACK B. WEINSTEIN, District Judge: I. Introduction...........................................................1384 II. Facts..................................................................1385 III. Propriety of Consolidation..............................................1387 IV. Erie Concerns and State Decisional Law................................1388 V. General Obligations Law Section 15-108 ................................ 1391 A. The Statute and Legislative History................................1391 B. Method of Calculation of G.O.L. § 15-108 Set-Offs.................1393 C. The Manville Personal Injury Settlement Trust..................'____1397 1. Phase II and Phase III Trials.................................1397 2. Phase I Trials................................................1399 D. Reallocation of Nonparty and Bankrupt Shares.....................1399 VI. Actions Subject to Article 16 of New York Civil Practice Law and Rules____1403 VIL Flintkote..............................................................1405 VIII. Vernon Green: A Two-Injury Case.................... 1406 IX. Interest Pursuant to New York Estate, Powers and Trust Law Section 5-4.3................................................................1407 A. Non-settling Defendants............................................1407 B. The Manville Trust................................................1410 X. Collateral Source Payments ............................................1410 XI. Calculations With Respect to Future Damages..........................1410 XII. Order of Computation..................................................1411 XIII. Remaining Motions.....................................................1412 XIV. Conclusion.............................................................1412 MEMORANDUM AND ORDER I. INTRODUCTION The New York Naval Shipyard, located in Brooklyn, is commonly referred to as the Brooklyn Navy Yard. It was the construction site of many of the nation’s finest and most powerful naval vessels. During World War II and for the next thirty years thereafter, thousands of its workers were exposed to dangerous airborne asbestos fibers without being advised of the potential health consequences. The Navy, though aware of the hazards posed by asbestos dust, in its urge to build its warships as quickly as possible, did not inform workers of the dangers and neglected to take available protective precautions. The United States now disclaims liability from behind its shield of sovereign immunity. Those injured have therefore turned to the manufacturers for redress, basing their claims on lack of warning on products or packaging. Latency before manifestation of asbestos diseases is often measured in decades. By the early 1970’s, increasing numbers of Navy Yard workers were experiencing asbestos-related injuries from exposure beginning as early as the 1930’s. Since the New York statutes of limitations ran from date of exposure, not discovery, their claims were barred. It was not until 1986 that New York amended its statute of limitations to start its running on discovery of the disease. Previously barred suits were allowed to be filed. The result was a large influx of asbestos cases into New York’s state and federal courts. The Eastern and Southern Districts of New York have consolidated all asbestos eases filed in either district for pretrial and control purposes before Judge Charles P. Sifton. Brooklyn Navy Yard cases were assigned to Judge Jack B. Weinstein. He presided over a series of settlements and trials involving personal injury and wrongful death that allegedly resulted from exposure to asbestos in the course of employment at the Yard. Following the jury verdicts, the parties have filed a number of post-trial motions. Defendants challenge the propriety of the consolidated trials, a contention without substantial merit. All parties pose a series of difficult questions on how the jury verdict should be molded in the light of a variety of recent New York statutes. The process of translating the jury verdicts into judgments in New York is governed by an extremely complex statutory scheme. It is one example of a wave of “tort reform” that swept the country in the 1980’s. See generally P. Schuck, Tort Law and the Public Interest: Competition, Innovation and Consumer Welfare (ed. 1991); Gellis, Legislative Reforms of Governmental Tort Liability: Overreacting to Minimal Evidence, 21 Rutgers L.Rev. 375 (1990); Priest, Modern Tort Law and Its Reform, 22 Valparaiso L.Rev. 1 (1987). Amid a furor of private and public sector sentiment fearful of increased litigation and its costs, every state legislature considered some form of tort reform legislation between 1985 and 1987 and forty-two states enacted statutes. Priest, supra, at 3; see Selected State Legislative Action Re: Affordability and Availability of Liability Insurance (National Conference of State Legislatures Aug. 4, 1986). New York’s legislative battles yielded a statutory scheme built on compromises resulting in ambiguities, inconsistencies and difficulties in administration. The effect and meaning of many of the provisions remains uncertain. Much of the New York tort reform legislation, two authors suggest, “imposes complexities never before saddled on our overburdened bench and ... bar.” Kelner & Kelner, Trends in CPLR Articles 50A and 50B, N.Y.L.J. Aug. 27, 1991, at 6. The statutory plan for molding jury verdicts into judgments in New York distinguishes between 1) actions filed as revived personal injury cases previously barred by the old statute of limitations, 2) revived wrongful death actions, 3) tort reform personal injury claims and 4) tort reform wrongful death cases. See McKinney’s 1986 Sessions Laws of New York, ch. 682; N.Y. C.P.L.R. § 214-c(2). Examples of all four of these categories are found among the seventy-nine jury verdicts now before the court. This memorandum addresses questions that remain concerning the jury verdicts in the consolidated Navy Yard trials. Among them are: First, what is the proper method for computing the set-off provided for in New York General Obligations Law section 15-108? Second, under section 15-108 how should shares of fault attributed by the jury to nonparties or bankrupt entities be handled? Third, how should the share allocated to the Manville Personal Injury Settlement Trust be calculated? Fourth, in cases brought under the tort reform statute enacted in 1986, does Article 16 of the New York General Obligations Law dictate that a plaintiff’s award of non-economic damages be reduced by the amount of damages or share of fault attributable to non-parties who for reasons of bankruptcy or diversity could not be brought into the action? Fifth, should prejudgment interest awardable under New York Estate, Powers and Trust Law section 5-4.3(a) apply to the entire verdict including sums awarded for future losses and what is the rate? Sixth, in tort reform actions, what is the proper discount rate to apply in reducing future economic damages to present value? Seventh, what is the order in which calculations should be made? Finally, challenges have been asserted to particular awards and findings made by the jury. None of them have any merit, except in one case where the court found that there was no proof of liability on the part of one defendant and the jury attributed a percentage of liability to that defendant. In every other instance the jury’s awards were fully supportable by the evidence. II. FACTS On January 18, 1990 Judge Sifton and Judge Weinstein held a joint conference to consider means for resolving common legal and factual issues arising in cases of workers exposed to asbestos while working in the Brooklyn Navy Yard. On January 22, 1990 several hundred personal injury and wrongful death asbestos cases with a substantial nexus to the Brooklyn Navy Yard were reassigned to Judge Weinstein for all purposes. This Judge has also been designated to sit as a Judge of the Southern District continuously since January 23, 1990. A similar consolidation of several hundred Navy Yard cases was assigned to State Supreme Court Justice Helen E. Freedman. The state and federal courts embarked upon a cooperative program for the handling of these Brooklyn Navy Yard cases. The joint federal and state consolidation totalled over 600 cases with plaintiffs claiming compensatory damages in the hundreds of millions of dollars and punitive damages in the billions. Justice Freedman and this court jointly appointed Kenneth R. Feinberg as Referee and Settlement Master. In re Joint Eastern & Southern Dists. Asbestos Litig., 129 F.R.D. 434 (E. & S.D.N.Y. & N.Y.Sup.Ct. 1990). With his invaluable assistance, the majority of plaintiffs settled almost all of their claims against the nearly 100 manufacturers and distributors initially sued. Some cases settled entirely; some went to trial against a few manufacturers. Proceeding on an expedited basis, the Brooklyn Navy Yard cases were divided into three categories for purposes of trial: Phase I consisted of cases in which over 90% of plaintiffs’ exposure to asbestos occurred in the Yard; Phase II encompassed cases in which between 50% and 90% of plaintiffs’ exposure took place in the Yard; Phase III covered all remaining cases involving Yard exposure to asbestos. While the state and federal courts initially set the cases for a joint trial, in view of the extensive settlements separate state and federal trials of the relatively small number of remaining cases appeared more desirable. On September 10, 1990 sixty-four Phase I cases proceeded to trial in the federal court against the following defendants: Owens-Illinois, Fibreboard, Pittsburgh Corning, Keene and the Manville Trust. At the outset of the trial, each side presented teaching witnesses to educate the jurors generally about asbestos and introduce relevant medical and epidemiological studies on its effects. It was anticipated that the same jury would sit in all phases of the trials and therefore special attention was paid to training them. The jurors were devoted to their work and gave sustained attention to the evidence. They were selected after filling out a searching written questionnaire prepared by counsel and court. Each juror chosen was aware that his or her work would require many months of painstaking effort. Each had a notebook with key documents, a photograph of each injured person and a summary of each case. Each juror took extensive notes using steno pads and pencils supplied by the parties. A photograph of each of the more than one hundred and twenty witnesses was made available to the jury to refresh its memory. Summaries of depositions and detailed evidence and witness lists as well as full records of all medical history were sent to the jury room. Interim summations by counsel and short interim charges and explanations during trial were given by the court. Detailed charge sheets of some fifteen pages for each of the seventy-nine cases were filled out by the jurors (a total of more than a thousand pages of questions), enabling them to focus precisely on the issues. Where the law was unclear, alternate questions were put to the jury embodying the different legal theories to avoid the necessity of a retrial. Strict control over experts and extensive video and other depositions was relied on to reduce costs per case and to speed the trials. Much of the documentary evidence was studied by the jury in the jury room, avoiding hundreds of hours of courtroom time. Extensive use of slides, charts and other visual devices assisted the jurors. In all respects able counsel and distinguished expert witnesses on both sides cooperated to lend an air of dignity and clarity to the proceedings. The parties had as fair a trial as the court was capable of giving them. All issues were tried at once in each case. After four months of evidence and argument and four weeks of deliberation in Phase I, the jury returned plaintiffs’ verdicts in fifty-two cases and defense verdicts in twelve cases. Damages totalled $30,-659,658.80. No punitive damages were awarded. All companies which shipped asbestos-containing products to the Navy Yard were found liable to some of the plaintiffs as a result of their failure to warn workers of health risks that attend exposure to asbestos fibers. At the conclusion of the trial, the jury was temporarily discharged with the understanding it would reconvene during a subsequent trial of cases in Phases II and III scheduled for February. Special Master Feinberg continued settlement discussions with the parties during and following the first trial. His efforts were largely successful. A second consolidated trial of the unresolved Brooklyn Navy Yard cases commenced on February 19,1991. Only fifteen cases remained for trial of claims against one or more of three defendant manufacturers: Empire Ace, Fibreboard and Keene. On April 16 the jury rendered its verdicts: twelve in favor of plaintiffs and three for the defense. Total damages awarded in Phases II and III amounted to $7,388,877, with no punitive damages. With the conclusion of the second trial, all Brooklyn Navy Yard cases filed in the federal courts in the Eastern and Southern Districts of New York pending as of February 18,1991 had been either settled or tried to verdict. In the meantime jury trials were being conducted before Justice Freedman in the state court. The jury in those cases brought in verdicts more than three times as high as those in the federal court. The state jury also imposed punitive damages while, as noted, the federal jury found no reason to assess punitive damages in any case. III. PROPRIETY OF CONSOLIDATION Consolidations have become increasingly necessary in tort cases generally, and asbestos cases in particular. See, e.g., Hendrix v. Raybestos-Manhattan, Inc., 776 F.2d 1492 (11th Cir.1985); Neal v. Carey Canadian Mines, Ltd., 548 F.Supp. 357 (E.D.Pa.1982), aff'd sub nom. Van Buskirk v. Carey Canadian Mines, Ltd., 760 F.2d 481 (3d Cir.1985); Wilson v. Johns-Manville Sales Corp., 107 F.R.D. 250 (S.D.Tex.1985). The recent decision by the Judicial Panel on Multidistrict Litigation to consolidate all asbestos personal injury and wrongful death cases seriously undermines the defendants’ contentions that the present consolidation exceeded the court’s discretion and violated due process. In re Asbestos Prods. Liab. Litig. (No. VI), 771 F.Supp. 415 (Jud. Pan. on MDL 1991). In choosing to transfer the cases pursuant to section 1407 of Title 28 of the United States Code, the Panel found that the cases involve similar questions of law and fact. Id. at 416-17 (“the Panel finds that the actions in this litigation involve common questions of fact relating to injuries or wrongful death allegedly caused by exposure to asbestos”). Moreover, the Panel emphasized “that this litigation has reached a magnitude ... that threatens the administration of justice and that requires a new, streamlined approach.” Id. at 418. To avoid unnecessary costs or delay, Rule 42(a) of the Federal Rules of Civil Procedure permits a federal court to consolidate actions for trial when there are common questions of law or fact. Fed. R. Civ.P. 42(a). See Johnson v. Celotex Cory., 899 F.2d 1281, 1284 (2d Cir.), cert. denied, — U.S. -, 111 S.Ct. 297, 112 L.Ed.2d 250 (1990); Ellerman Lines, Ltd. v. Atlantic & Gulf Stevedores, Inc., 339 F.2d 673 (3d Cir.1964), cert. denied, 382 U.S. 812, 86 S.Ct. 23, 15 L.Ed.2d 60 (1965). The trial court has broad discretion in determining whether to consolidate actions. See Romacho v. Stanley, 567 F.Supp. 1417, 1419 n. 2 (S.D.N.Y.1983), aff'd sub nom. Morse v. Stanley, 732 F.2d 1139 (2d Cir.1984). As federal court dockets burgeon, interests of judicial economy and efficiency gain importance. Nevertheless, considerations of convenience must yield when consolidation threatens to deny litigants a fair trial. Arnold v. Eastern Air Lines, Inc., 712 F.2d 899 (4th Cir.1983) (en banc), cert. denied, 464 U.S. 1040, 104 S. Ct. 703, 79 L.Ed.2d 168 (1984); Flintkote Co. v. Allis-Chalmers Corp., 73 F.R.D. 463 (S.D.N.Y.1977). The Second Circuit has set forth criteria that the district court must consider in making determinations concerning consolidation: [WJhether the specific risks of prejudice and possible confusion [are] overborne by the risk of inconsistent adjudications of common factual and legal issues, the burden on parties, witnesses, and available judicial resources posed by multiple lawsuits, the length of time required to conclude multiple suits as against a single one, and the relative expense to all concerned of the single-trial, multiple-trial alternatives. Johnson, 899 F.2d at 1285 (quoting Hendrix v. Raybestos-Manhattan, Inc., 776 F.2d 1492, 1495 (11th Cir.1985)) (citations omitted). In In re Maryland Asbestos Cases, the court offered the following examples of factors that tended to support consolidation of asbestos cases pending in that district, (1) common worksite; (2) similar occupation; (3) similar time of exposure; (4) type of disease; (5) whether plaintiffs were living or deceased; (6) status of discovery in each case; (7) whether all plaintiffs were represented by the same counsel; and (8) type of cancer alleged. In re All Asbestos Cases Pending in the United States District Court for the District of Maryland, slip op. (D.Md. Dec. 16, 1983); see also In re Joint Eastern & Southern Dists. Asbestos Litig., 125 F.R.D. 60, 64 (E.D.N.Y.1989) (discussing Maryland and other consolidations). Several of these criteria are present in the Brooklyn Navy Yard cases. A strong geographic nexus tied these asbestos cases together through plaintiffs’ exposure at one worksite, the Brooklyn Navy Yard. The plaintiffs were represented by a few law firms and sued the same former manufacturers and distributors of asbestos-containing products. Extensive overlap in witnesses, primarily former co-workers attesting to product identification at this work-site and medical and epidemiological experts, saved litigants time and money. The years of exposure spanned the period during which asbestos was utilized at the Navy Yard, beginning in the 1930’s through the early 1970’s. The jury was repeatedly instructed to consider each case individually. Cf. Johnson, 899 F.2d at 1285. Detailed separate verdict sheets were prepared for each plaintiff, greatly minimizing any confusion that might otherwise flow from the consolidation. The time the jury took during deliberations and their sequential requests for medical and other records and reading of testimony in each case attests to their careful and individualized treatment of each cause of action. Their precisely calculated and discriminating verdicts similarly reflect this attention to the variations in the cases. All verdicts were internally consistent and consistent with each other and the evidence. The transfer of all Southern and Eastern District Brooklyn Navy Yard cases to the Eastern District of New York for joint trial was proper. Transfer and consolidation took place nunc pro tunc from the time of the beginning of trial or before. Cf. In re Joint Eastern & Southern Dists. Asbestos Litig. (Powerhouse Cases), 769 F.Supp. 85 (E. & S.D.N.Y.1991). IV. ERIE CONCERNS AND STATE DECISIONAL LAW These cases raise several difficult questions of interpretation of state law. A brief discussion of Erie R.R. Co. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188 (1938), and its application in instances of conflicting or sparse state authority seems useful at the outset. When a federal court presides over a diversity case, New York substantive law governs. Id.; see 28 U.S.C. § 1652 (“The laws of the several states, except where the Constitution or treaties of the United States or Acts of Congress otherwise require or provide, shall be regarded as rules of decision in civil actions in the courts of the United States, in cases where they apply.”). Subsequent cases instruct that a federal court is to adjudicate state disputes in the same manner as a federal court resolves an evolving issue of federal law: “with the aid of such light as [is] afforded by the materials for decision at hand, and in accordance with the applicable principles for determining state law.” Salve Regina College v. Russell, — U.S. -, 111 S.Ct. 1217, 1218-19, 113 L.Ed.2d 190 (1991) (quoting Meredith v. Winter Haven, 320 U.S. 228, 238, 64 S.Ct. 7, 12-13, 88 L.Ed. 9 (1943)). In Swift v. Tyson, 16 Pet. (41 U.S.) 1, 18, 10 L.Ed. 865 (1842), the Supreme Court concluded that the Rules of Decision Act’s reference to the “laws of the several states” compelled federal courts to apply state positive law, such as statutes and constitutions. Only state decisional law interpreting local statutes was considered to fall within a state’s positive law: In all the various cases, which have hitherto come before us for decision, this Court have uniformly supposed, that the true interpretation of the thirty-fourth section limited its application to state laws strictly local, that is to say, to the positive statutes of the state, and the' construction thereof adopted by the local tribunals____ Id. at 18-19; see also C. Wright, A. Miller & E. Cooper, Federal Practice and Procedure § 4502, at 4-6 (2d ed. 1982 & Supp. 1991). Since it is state statutes that the court is now interpreting, even before Erie it would have been bound by state law. Erie, of course, greatly expanded the scope of federal deference to state law and predicated that expansion on constitutional requirements. Erie R.R. Co. v. Tompkins, 304 U.S. 64, 77-78, 58 S.Ct. 817, 822-23, 82 L.Ed. 1188 (1938) (“If only a question of statutory construction were involved, we should not be prepared to abandon a doctrine so widely applied throughout nearly a century [Swift v. Tyson ]. But the unconstitutionality of the course pursued has now been made clear____”). Following Erie, state court decisions were accorded significantly enhanced weight. Intermediate state court pronouncements of state law were held to deserve persuasive, if not decisive, consideration in the absence of a ruling from the state’s highest court. See Stoner v. New York Life Ins. Co., 311 U.S. 464, 61 S.Ct. 336, 85 L.Ed. 284 (1940); West v. American Tel. & Tel. Co., 311 U.S. 223, 236-37, 61 S.Ct. 179, 183-84, 85 L.Ed. 139 (1940); Six Cos. of California v. Joint Highway Disk, 311 U.S. 180, 61 S.Ct. 186, 85 L.Ed. 114 (1940). But see Friendly, In Praise of Erie — And of the New Federal Common Law, 39 N.Y.U. L.Rev. 383, 400 (1964) (characterizing these decisions as “the excesses of 311 U.S. as to the respect that federal judges must pay to decisions of lower state courts”) (citation omitted). The question of how a federal court ascertains and applies state decisional law remain subject to some differing views with respect to the initiative a federal court should take in explicating state statutes. Compare Wilson v. Asten-Hill Mfg. Co., 791 F.2d 30, 32 (3d Cir.1986) (federal court in applying substantive law of state in which it sits must predict how state’s highest court would rule) and Weiss v. United States, 787 F.2d 518, 525 (10th Cir.1986) (same) with Shaw v. Republic Drill Corp., 810 F.2d 149, 150 (7th Cir.1987) (“[o]ur policy will continue to be one that requires plaintiffs desirous of succeeding on novel state law claims to present those claims initially in state court”) and Anderson v. Marathon Petroleum Co., 801 F.2d 936, 942 (7th Cir.1986) (unwilling to predict new trends in state jurisprudence). The Ninth Circuit recently stated: We note that the rule in other circuits is that the federal courts have limited discretion in a diversity case “to adopt untested legal theories brought under the rubric of state law.” Affiliated FM Ins. Co. v. Trane, 831 F.2d 153, at 155 (7th Cir.1987)____ For better or worse, this circuit has not seen fit to assume such a posture of restraint when it comes to deciding novel questions of state law. Torres v. Goodyear Tire & Rubber Co., 867 F.2d 1234, 1238 n. 1 (9th Cir.1989) (citations omitted); see also Cooper v. American Airlines, 149 F.2d 355, 359 (2d Cir.1945) (“What would be the decision of reasonable intelligent lawyers, sitting as judges of the highest New York court, and fully conversant with New York ‘jurisprudence’?”). Under current Second Circuit practice, acting in effect as a state trial tribunal, this court must carefully review available resources to predict how the New York Court of Appeals would resolve the questions at bar. See Minotti v. Lensink, 798 F.2d 607, 610-11 (2d Cir.1986) (predicting Connecticut law), cert. denied, 482 U.S. 906, 107 S.Ct. 2484, 96 L.Ed.2d 376 (1987); see also Commercial Union Ins. Co. v. Bituminous Cas. Corp., 851 F.2d 98, 101-04 (3d Cir.1988) (New Jersey law). See generally Clark, State Law in the Federal Courts: The Brooding Omnipresence of Erie v. Tompkins, 55 Yale L.J. 267, 290-95 (1946) (discussing how to ascertain state law where it is unsettled); Corbin, The Laws of the Several States, 50 Yale L.J. 762 (1941). The ultimate goal is to achieve uniformity of result independent of whether a case is brought in state or in federal court pursuant to diversity jurisdiction. See Guaranty Trust Co. v. York, 326 U.S. 99, 109, 65 S.Ct. 1464, 1469-70, 89 L.Ed. 2079 (1945). The best authority on the meaning of state statutes is the state’s highest court. See Sanchez v. United States, 696 F.2d 213, 216 (2d Cir.1982). In absence of pertinent holdings from that tribunal, other sources must be surveyed for insight into the meaning of a particular legislative enactment. The _ Supreme Court has explained: If there be no decision by th[e state’s highest] court then federal authorities must apply what they find to be the state law after giving “proper regard” to relevant rulings of other courts of the State. Commissioner v. Estate of Bosch, 387 U.S. 456, 465, 87 S.Ct. 1776, 1782, 18 L.Ed.2d 886 (1967); see also Huddleston v. Dwyer, 322 U.S. 232, 236, 64 S.Ct. 1015, 1017-18, 88 L.Ed. 1246 (1944) (“It is the duty of the federal appellate courts, as well as the trial court, to ascertain and apply the state law where, as in this case, it controls decision.”) (citation omitted). “When presented with an absence of controlling state authority, we must ‘make an estimate of what the state’s highest court would rule to be its law.’ ” DeWeerth v. Baldinger, 836 F.2d 103, 108 (2d Cir.1987), cert. denied, 486 U.S. 1056, 108 S.Ct. 2823, 100 L.Ed.2d 924 (1988) (quoting Stafford v. International Harvester Co., 668 F.2d 142, 148 (2d Cir. 1981)). While a federal court is not bound by lower state court decisions, they do have great weight in informing the court’s prediction on how the highest court of the state would resolve the question. Absent strong evidence that the New York Court of Appeals would decide the issue differently, rulings of the intermediate state appellate courts are particularly persuasive evidence of state law. See, e.g., Puckett v. Tennessee Eastman Co., 889 F.2d 1481, 1485 (6th Cir.1989); Maseda v. Honda Motor Co., 861 F.2d 1248, 1256 n. 14 (11th Cir.1988); Weiss v. United States, 787 F.2d 518, 525 (10th Cir.1986) (federal courts must follow state intermediate court decisions, trends and underlying policies of those). But cf. Competex, S.A. v. Labow, 783 F.2d 333, 341 n. 16 (2d Cir.1986) (federal court of appeals not bound to follow state trial court decision where it believes that the state’s highest court would disagree). The Third Circuit in McKenna v. Ortho Pharmaceutical Corp., 622 F.2d 657 (3d Cir.), cert. denied, 449 U.S. 976, 101 S.Ct. 387, 66 L.Ed.2d 237 (1980), described the required analytical process as follows: An accurate forecast of Ohio’s law, as it would be expressed by its highest court, requires an examination of all relevant sources of that state’s law in order to isolate those factors that would inform its decision. The primary source that must be analyzed of course, is the decisional law of the Ohio Supreme Court____ [Relevant state precedents must be scrutinized with an eye toward the broad policies that informed those adjudications, and to the doctrinal trends which they evince____ Of somewhat less importance to a prognostication of what the highest state court will do are decisions of lower state courts and other federal courts. Such decisions should be accorded “proper regard” of course, but not conclusive effect____ Thus, under some conditions, federal authority may not be bound even by an intermediate state appellate court ruling. Additionally, federal courts may consider scholarly treatises, the Restatement of Law, and germane law review articles — particularly, it seems, of schools within the state whose law is to be predicted. Id. at 662-63; see also Rettinger v. American Can Co., 574 F.Supp. 306, 310-11 (M.D.Pa.1983) (exploring state law public policies in ascertaining how state’s highest court would rule). Well-settled principles, which are applied in New York, direct that the words and language of the statute constitute the best indication of its proper construction. See, e.g., West Virginia University Hosp., Inc. v. Casey, — U.S.-, 111 S.Ct. 1138, 1148, 113 L.Ed.2d 68 (1991); Griffin v. Oceanic Contractors, Inc., 458 U.S. 564, 571, 102 S.Ct. 3245, 73 L.Ed.2d 973 (1982). The statute’s language should be given its natural and obvious meaning. See Demarest v. Manspeaker, — U.S.-, 111 S.Ct. 599, 604, 112 L.Ed.2d 608 (1991); N.Y. Statutes Law § 76. While the statutory language is the best source of authority, in instances of ambiguity the court will turn to the legislative history and other interpretive tools for assistance. A literal reading of the statute should not yield a result patently at odds with the stated goal of the legislation. Cf. Guiseppi v. Walling, 144 F.2d 608, 624 (2d Cir.1944), aff'd sub nom. Gemsco, Inc. v. Walling, 324 U.S. 244, 65 S.Ct. 605, 89 L.Ed. 921 (1945). As observed in Haberman v. Finch, 418 F.2d 664, 666 (2d Cir.1969), “courts should enforce a statute in such a manner that its overriding purpose will be achieved, even if the words used leave room for a contrary interpretation.” Id. at 666; see also Bulk Oil (U.S.A.) Inc. v. Sun Oil Trading Co., 697 F.2d 481, 486 n. 12 (2d Cir.1983) (“[o]ur function is not to read the statute literally but to give effect to the legislative intent”). New York law accords particular significance to the legislative purpose and history for a statute’s proper construction. Abood v. Hospital Ambulance Serv., Inc., 30 N.Y.2d 295, 298, 283 N.E.2d 754, 756, 332 N.Y.S.2d 877, 879 (1972); see Williams v. Williams, 23 N.Y.2d 592, 599, 246 N.E.2d 333, 337, 298 N.Y.S.2d 473, 479 (1969) (use reason and statutory purpose to arrive at proper result). Thus, a federal district court will consider, just as a well-advised state court would, the statutory language, pertinent legislative history, the statutory scheme set in historical context, how the statute can be woven into the state law with the least distortion of the total fabric, state decisional law, federal cases which construe the state statute, scholarly works and any other reliable data tending to indicate how the New York Court of Appeals would resolve the questions presented. See Francis v. INA Life Ins. Co., 809 F.2d 183, 185 (2d Cir.1987) (federal court may consider all sources used by New York Court of Appeals including decisions of other jurisdictions). Where a conflict exists between holdings of the Second Circuit and more recent determinations of state appellate courts, this court will follow the outcome it believes the New York Court of Appeals would reach, without giving binding authority to the Second Circuit’s construction of the state statute. The federal Court of Appeals is in the same position as a lower state court vis-a-vis the New York Court of Appeals in construing state substantive law under Erie. See Part VIII infra. Adherence to the state decisional authority is constitutionally mandated where there appears to be no confusion in the [state] decisions, no developing line of authorities that casts a shadow over the established ones, no dicta, doubts or ambiguities in the opinions of [state] judges on the question, no legislative development that promises to undermine the judicial rule, Bernhardt v. Polygraphic Co., 350 U.S. 198, 205, 76 S.Ct. 273, 277, 100 L.Ed. 199 (1956). V. GENERAL OBLIGATIONS LAW SECTION 15-108 A. The Statute and Legislative History Section. 15-108 of the New York General Obligations Law sets forth the effect of a settlement with one or more joint tortfeasors on the amount ultimately recovered by a prevailing plaintiff following a verdict against non-settling defendants. It provides: (a) Effect of release of or covenant not to sue tortfeasors. When a release or a covenant not to sue or not to enforce a judgment is given to one of two or more persons liable or claimed to be liable in tort for the same injury, or the same wrongful death, it does not discharge any of the other tortfeasors from liability for the injury or wrongful death unless its terms expressly so provide, but it reduces the claim of the releasor against the other tortfeasors to the extent of any amount stipuleted [sic] by the release or the covenant, or in the amount of the consideration paid for it, or in the amount of the released tortfeasor’s equitable share of the damages under article fourteen of the civil practice law and rules, whichever is the greatest. (b) Release of tortfeasor. A release given in good faith by the injured person to one tortfeasor as provided in subdivision (a) relieves him from liability to any other person for contribution as provided in article fourteen of the civil practice law and rules. (c) Waiver of contribution. A tortfeasor who has obtained his own release from liability shall not be entitled to contribution from any other person. N.Y. G.O.L. § 15-108. Article Fourteen of the New York Civil Practice Law and Rules states that “equitable shares shall be determined in accordance with the relative culpability of each person liable for contribution.” N.Y. C.P.L.R. § 1402. New York’s courts have construed the phrase “the released tortfeasor’s equitable share of the damages” to represent the percentage of liability which the jury attributed to that party. See, e.g., Killeen v. Reinhardt, 71 A.D.2d 851, 853, 419 N.Y.S.2d 175, 178 (N.Y.App.Div.1979) (referring to “equitable share of the damages as found by the jury”); Williams v. Niske, 147 Misc.2d 556, 557.N.Y.S.2d 1006, 1007-09 (N.Y.Sup.Ct.1989) (same). Application of the statute in this case raises several questions concerning the meaning and scope of section 15-108(a). The New York Court of Appeals decision in Dole v. Dow Chemical Co., 30 N.Y.2d 143, 282 N.E.2d 288, 331 N.Y.S.2d 382 (1972), created the predicate for passage of section 15-108. Dole established the rule in New York of apportionment of damages among joint or concurrent tortfeasors regardless of the nature or degree of fault attributable to the different actors. See Kelly v. Long Island Lighting Co., 31 N.Y.2d 25, 29, 334 N.Y.S.2d 851, 854, 286 N.E.2d 241, 242-43 (1972). Before Dole in circumstances such as exist in the Brooklyn Navy Yard cases joint and several liability would have exposed each of the defendants now before the court to full liability to the plaintiffs for all the harm suffered less the total amount actually recovered from all settling defendants. A pre-Dole settling defendant had no further responsibility either to the plaintiff or to other non-settling defendants claiming contribution. Green, General Obligations Law Section 15-108: An Unsettling Law, 55 N.Y.S.B.J. 28 (1983). A plaintiff who achieved partial settlement with some joint tortfeasors remained free to pursue his or her claim against the non-settling tortfeasors for uncompensated injuries. After Dole, a settling defendant was no longer immune from suits by non-settling defendants for any excess amount the jury apportioned to that particular defendant. By denying a settling defendant the advantage of protection against further litigation, Dole created a barrier to settlements. Since settlements are essential to the operation of a heavily overloaded judicial system, a crisis in adjudicating tort cases loomed. Following extensive study by the Law Revision Commission, at the Commission’s suggestion, the legislature enacted section 15-108. The primary concern of the Commission and legislature centered on permitting a plaintiff to settle with one joint tortfeasor without automatically releasing all other tortfeasors. See, e.g., Recommendation of the Law Revision Commission to the Legislature Relating to the Effect of a General Release Without Reservation Given to One of Two or More Joint Tortfeasors (Assembly No. 10822; Senate No. 8930) (1972). Emphasis was also placed on not permitting the plaintiff to receive compensation for the same injury in excess of the damage suffered. Id. The 1974 New York Legislative Annual explained that the amendments in section 15-108 were crafted with two principal goals in mind: codification and clarification of the fundamental holding of Dole and elimination of the disincentive to settle resulting from interpretations of Dole. 1974 N.Y.Legis.Ann. at 15. See Mielcarek v. Knights, 50 A.D.2d 122, 126, 375 N.Y.S.2d 922, 925-26 (N.Y.App.Div.1975) (“The 1974 amendment to section 15-108 of the General Obligations Law was enacted to ensure that the non-settling tortfeasor not be burdened with more than his equitable share because of the fact that another tortfeasor had chosen to settle and, at the same time, to rekindle the incentive for settlements____). An examination of the Law Revision reports and the legislative files available from the Governor’s office and elsewhere reveals no reference to the precise issues now before us. Only the general purposes of section 15-108 are discussed. In Rock v. Reed-Prentice Division of Package Machinery, 39 N.Y.2d 34, 40-41, 346 N.E.2d 520, 523, 382 N.Y.S.2d 720, 723 (1976), the Court of Appeals explained that “[t]he general purpose of section 15-108 is to encourage settlements by altering or eliminating certain rules of prior law which had an inhibiting effect on the settlement process.” Id.; see also N.Y. G.O.L. § 15-108 commentary (purpose of amending section 15-108 was “to encourage settlement in tort cases, something which had become troublesome after the decision in Dole v. Dow Chemical Co.”). The statute was designed to foster settlement “by assuring not only that a wrongdoer is responsible for no more than his equitable share of damages, but also that once a defendant settles he purchases an everlasting peace.” Green, General Obligations Law Section 15-108: An Unsettling Law, 55 N.Y.S.B.J. 28 (1983). B. Method of Calculation of G.O.L. § 15-108 Set-Offs Plaintiffs maintain that the jury in rendering its verdict should consider and apportion fault among all entities potentially responsible for asbestos-related injuries. Once having apportioned fault among all tortfeasors, the plaintiffs assert that the court should calculate the credit due non-settling defendants by 1) adding the value of the settlements and separately 2) adding up the value of the shares attributed to settling defendants. Pursuant to section 15-108, the court then would, following plaintiffs’ analysis, deduct the larger of 1) and 2) totals from the verdict owed by non-settling defendants. In contrast, defendants argue that they have the right to calculate the set-offs on a defendant-by-defendant basis, in each instance subtracting the larger of the settlement or value of the share attributed by the jury to each settling defendant. The defendants’ version tends to reduce the recovery obtainable from non-settling defendants. In some instances, it will result in those defendants who go to trial having to pay nothing despite a jury verdict that found them liable for a substantial share of the plaintiffs’ damages. An example will suggest the difference. Let us assume defendants A, B and C settle by paying plaintiff $25,000 each. Defendant D goes to trial and the jury fixes total damages at $100,000 and assesses liability as follows: A 60%, B 5%, C 10% and D 25%. Under plaintiffs’ version, the total paid in settlements and assessed by the jury against settling defendants is $75,-000. This is deducted from the $100,000 and D pays its rightful share, $25,000— 25% of the $100,000 verdict. Under the defendants’ version, A is credited with $60,-000 (60% X 100,000), B with $25,000, and C with $25,000. This is more than $100,000 so D pays nothing even though the jury found it liable. Plaintiff receives $75,000, which is $25,000 less than the damages awarded by the jury. If the court were writing on a blank slate, the decision would be easier. The plaintiffs’ position appears more closely to fulfill the equitable goals of the statute. It is more consonant with the New York law both before and after Dole. It is consistent with the statutory scheme set in historical context and distorts least the total fabric of New York law controlling relations among tort litigants. There is no justification for rewarding recalcitrant non-settling defendants by permitting them to apply the General Obligations Law offset in a manner that reduces or even obliterates their own liability in cases where plaintiffs are not fully compensated for their injuries. The issue is one with practical implications. Following defendants’ view, in In re Joint Southern & Eastern Disk Asbestos Litig. (Gallin), 760 F.Supp. 33, 34-35 (E.D.N.Y.1991), for example, after set-offs Owens Illinois was left with no judgment to satisfy despite a jury finding of substantial liability; plaintiff received less than the damage the jury found that he had suffered. If the set-off were calculated on an aggregate basis as requested by the plaintiffs, non-settling defendants would not be compelled to absorb more than their equitable share of liability and plaintiffs would not obtain a windfall benefit. This method would serve both of the statute’s primary goals: to encourage settlements and preserve Dole’s equitable fault sharing principles. The statute itself is ambiguous with respect to how the set-off should be calculated in the context of multiple settling and non-settling defendants. The defendants attribute significance to the statute’s reference to the releasing tortfeasor in the singular. In subdivision (a) of section 15-108, it uses the phrase “or in the amount of consideration paid ... or in the amount of the released tortfeasor’s equitable share of the damages ... whichever is greatest” (emphasis supplied). At the time the statute was amended in 1972, the paradigm cases cited by the Law Revision Commission were car accidents with two or three defendants. Cf., e.g., Plath v. Justus, 28 N.Y.2d 16, 268 N.E.2d 117, 319 N.Y.S.2d 433 (1971); Livant v. Livant, 18 A.D.2d 383, 239 N.Y.S.2d 608 (N.Y.App.Div.), app. dismissed, 13 N.Y.2d 894, 193 N.E.2d 503, 243 N.Y.S.2d 676 (1963). Enactment preceded the current era of mega-mass tort litigation. Asbestos litigation in particular presents situations not evaluated by the legislature at the time section 15-108 was adopted. The legislature did not consider the typical Brooklyn Navy Yard asbestos case where a plaintiff sues scores of former manufacturers and distributors of asbestos products. Most defendants in such cases settle, leaving only a few defendants who go to trial. Defendants assert that all New York state courts that have considered the question have permitted the non-settling defendants to proceed with a defendant-by-defendant calculation of set-offs pursuant to General Obligations Law section 15-108. They somewhat overstate the point since many cases have not actually addressed the precise question whether aggregation would better serve the statute’s goals. A review of the relevant state decisions does reveal, however, that in at least four state cases verdicts involved more than one settling defendant. In each instance, the court followed a defendant-by-defendant set-off as was requested by defendants. See Killeen v. Reinhardt, 71 A.D.2d 851, 419 N.Y.S.2d 175, 177 (N.Y.App.Div.1979); Williams v. Niske, 147 Misc.2d 556, 557 N.Y.S.2d 1006, 1009 (N.Y.Sup.Ct.1989); In re New York City Asbestos Litig., 572 N.Y.S.2d 1006 (Sup.Ct.1991) (Freedman, J.); see also Apple v. Jewish Hosp. & Medical Cent., 829 F.2d 326 (2d Cir.1987). In Killeen, the plaintiff had sued several doctors and the hospital for medical malpractice. Before the jury returned a verdict, the plaintiff settled her claims against two doctors for $265,000 and dismissed a third doctor without monetary consideration. The jury found the two physicians who had paid settlements a total of 30% responsible, the physician who was dismissed 20% at fault and the hospital responsible for the remaining 50% of the total $650,000 damages awarded. The trial court reduced the principal amount by the $265,000 received in settlement and additionally by the twenty percent allocated to the doctor against whom the plaintiff discontinued the action. Without discussion of whether the set-offs to account for all settling defendants should be considered in the aggregate or individually, the majority and the concurring judge of the Appellate Division proceeded to calculate the amounts separately. The case was remanded for a new trial for other reasons. More recently, two learned New York State Supreme Court Justices with extensive experience in' mass torts have reviewed the precise question posed here and expressly rejected plaintiffs’ construction of the statute. Williams v. Niske, 147 Misc.2d 556, 557 N.Y.S.2d 1006, 1009 (N.Y.Sup.Ct.1989) (Gammerman, J.); In re New York City Asbestos Litig., 572 N.Y.S.2d 1006 (Sup.Ct.1991) (Freedman, J.). As the court explained in Williams: contrary to the plaintiffs argument that [non-settling defendant] BTK must choose with respect to all settling defendants between credit for their equitable liability or the amount paid in settlement, it is clear that the statute imposes no such requirement. The term “tortfeasor” is used in the singular and the non-settling defendant is entitled to credit, with respect to each defendant tortfeasor, for the greater of either the amount paid or the equitable liability. Williams, 557 N.Y.S.2d at 1009 (emphasis in original). Moreover, Justice Gammerman emphasized that [c]ourts construing the statute have uniformly held that a non-settling defendant against whom a verdict is obtained is entitled to reduce the amount of the recovery against him or her by the full amount of any settlement by other parties, even if the settling party was found to be not liable at all, or by the equitable share of the damages attributable to the settling party, even if that party settled without paying any consideration to the plaintiff. Id. at 1008 (citations omitted). Aware that such a method of calculating set-offs might result in a liable, non-settling defendant being freed of all responsibility for payment despite the fact that a plaintiff had not received full compensation for injuries, Justice Gammerman responded that [t]he “free ride” results not solely from the operation of the statute but from the settlements reached by plaintiff with the other defendants____ Plaintiff and his attorney made certain decisions concerning the wisdom of accepting a number of settlement offers. In making those decisions plaintiff’s attorney was, or should have been, aware of the provisions of GOL § 15-108, and the impact of those provisions on the amount which the non-settling defendant might be required to pay after jury verdict. Id. at 1009. Justice Freedman, after reviewing New York practice and the authority discussed above, found the reasoning in Williams persuasive and compatible with the statutory scheme. Her decision is highly persuasive since, as already noted, she is responsible for all asbestos cases in the City of New York. It is desirable that the cases tried in the state and federal courts respond to the same substantive rules. Otherwise the plaintiffs will double file their cases and move their trials from state to federal court or vice versa to obtain the benefit of differing interpretations. The federal courts which have considered the issue also have adopted the defendants’ view. Judge Sifton in a multidefendant asbestos case subtracted the settlement amount in the one case in which it exceeded the equitable share allocated by the jury; with respect to each other defendant, he subtracted the amount corresponding to its equitable share of damages as determined by the jury. In re Joint Eastern & Southern Dists. Asbestos Litig. (Higgins), 124 F.R.D. 538, 544 (E.D.N.Y.1989), aff'd sub nom. Johnson v. Celotex Corp., 899 F.2d 1281 (2d Cir.), cert. denied, — U.S.-, 111 S.Ct. 297, 112 L.Ed.2d 250 (1990). In view of the large compensatory and punitive damages awarded in that case, it appears that plaintiffs did not vigorously press the statutory construction question on appeal before the Second Circuit which did not discuss the particular point. Judge McLaughlin acting as a district judge reached the same conclusion as did Judge Sifton. See In re Joint Eastern & Southern Dish Asbestos Litig. (Gallin), 760 F.Supp. 33, 34-35 (E.D.N.Y.1991). In that case, Judge McLaughlin calculated the deductions on a defendant-by-defendant basis subtracting the larger amount in each instance. Id. at 34 n. 1 (listing offsets). Other cases, while not directly considering the issue, appear to follow the defendants’ method of calculation. In Werner v. Our Lady of Lourdes, 60 A.D.2d 791, 400 N.Y.S.2d 659, 660 (N.Y.App.Div.1977), the only issue presented was whether an amount received by a plaintiff from a settling defendant to whom the jury attributed no fault should be subtracted from the damages awarded. The court determined that the amount was properly deducted from the jury verdict. The question of whether in the context of a multi-defendant case with several settling parties the deductions should be made in the aggregate or individually did not arise. The Second Circuit has endorsed set-offs that leave non-settling defendants with no verdict to satisfy despite a finding of liability, albeit in a context in which plaintiff received full compensation for her claims. In Apple v. Jewish Hospital & Medical Center, 829 F.2d 326 (2d Cir.1987), the representative of an estate of a woman who had died in childbirth brought a wrongful death action for medical malpractice and conscious pain and suffering against an anesthesiologist, Jewish Hospital and the United States. Prior to trial, the plaintiff settled her claims with Jewish Hospital for $600,000 and with the United States for $199,500 and voluntarily discontinued her claim for pain and suffering against those defendants. At trial, the jury awarded the plaintiff $325,000 on her wrongful death claim and $50,000 for her pain and suffering claim. The non-settling defendant, the anesthesiologist, was found 40% responsible for plaintiffs injuries. “Thus, from his total liability of 40 percent of $325,000 or $130,000, plus 40 percent of $50,000, or $20,000, it is obvious that crediting the $799,500 settlement against both causes of action leaves Dr. Aziz owing this plaintiff no damages.” Id. at 332. The closest authority in support of the plaintiffs’ construction of the statute is an unpublished memorandum opinion by the Second Circuit affirming a district court’s molding of verdicts by aggregation. See Scalone v. Celotex Corp., Nos. 90-7064, 90-7138 [923 F.2d 843 (table)] (2d Cir. Oct. 30,1990). In a limited discussion, the court correctly noted that the equitable apportionment goal of the statute is not served by permitting non-settling defendants to pay less than their share. Id. at 4. The Rules of the Second Circuit, however, state that unpublished opinions have no precedential value. Rules of the United States Court of Appeals for the Second Circuit § 0.23 (unpublished decisions are “statements [which] do not constitute formal opinions of the court” and “shall not be cited or otherwise used in unrelated cases before this or any other court”). While it might be argued that a recent decision of the Court of Appeals rendered in an asbestos case deserves substantial consideration in a similar case, the opinion provided insufficient analysis to be helpful. The plaintiffs have forcefully argued that the defendants’ construction of the General Obligations Law undermines the settlement goals of the statute. Settlements have always been desirable. In civil cases in particular, voluntary compromise of claims enhances judicial efficiency, affords the parties greater freedom and flexibility in resolving their differences and minimizes enforcement problems. Calculating the set-offs on an aggregate basis would likely better comport with the principles underlying enactment of section 15-108 that sought to encourage settlements. See Mielcarek v. Knights, 50 A.D.2d 122, 126, 375 N.Y.S.2d 922, 925 (N.Y.App.Div. 1975); Rock v. Reed-Prentice Div. of Pkg. Mach., 39 N.Y.2d 34, 346 N.E.2d 520, 382 N.Y.S.2d 720 (1976). Moreover, the court is mindful of the fact that the result in these cases will necessarily be that plaintiffs receive less than full compensation for their injuries. In part plaintiffs assumed this risk when they entered into settlements. At the same time, the court is aware that each settlement was negotiated in good faith after arduous bargaining and with the continuous assistance of the Special Master and the court. These were not collusive settlements designed to shift liability inappropriately. To force plaintiffs to suffer a shortfall and to exonerate non-settling defendants who have been found liable appears to be a result not intended by the legislature. Nonetheless, the defendants’ interpretation of section 15-108 will probably not appreciably inhibit settlements. Verdicts in New York cases tend, on the average, to be much larger than settlements; a defendant’s tactic of refusing to settle because of the 15-108 factor would be too dangerous. A plaintiff’s incentive to settle and to receive a sum promptly and without the burdens and risks of a trial is also strong. Thus, it is unlikely that any interpretation of 15-108 will substantially impede or substantially distort the calculus of settlement. Nevertheless, the weight of decisional law probably creates somewhat of a disincentive to settle contrary to one of its primary purposes. It also probably reduces slightly the value of a case for settlement purposes. At the moment this court must assume that the New York Court of Appeals would follow the holdings of the lower state courts on this issue. The initial statutory interpretation by the state and federal courts has now developed into an unmistakable jurisprudential trend that this court cannot lightly disregard. In view of the significance of calculating set-offs for settlements pursuant to the General Obligations Law in civil litigation, this may be an issue appropriate for the Second Circuit to certify to the New York Court of Appeals. See N.Y. Rules of Court § 500.17(a) (1991) (“Whenever it appears to the Supreme Court of the United States [or] any United States Court of Appeals ... that determinative questions of New York law are involved in a cause pending before it for which there is no controlling precedent of the Court of Appeals, such court may certify the dispositive questions of law to the Court of Appeals.”). In particular, because this is an issue that will recur repeatedly in settlement discussions and at trial, a definitive interpretation would serve the interests of consistent and equitable application of New York law. See DeWeerth v. Baldinger, 836 F.2d 103, 108 n. 5 (2d Cir.1987) (procedure recently authorized for certification of state law questions “should be confined to issues likely to recur with some frequency”), cert. denied, 486 U.S. 1056, 108 S.Ct. 2823, 100 L.Ed.2d 924 (1988); Kidney v. Kolmar Laboratories, Inc., 808 F.2d 955, 957 (2d Cir.1987). The Second Circuit has stated that the purpose of certification is to obtain the benefit of an authoritative construction from the state’s highest court before proceeding to the merits of the dispute. This may further the interests of federal/state comity by providing the state court with the opportunity to rule on an issue of state law before being precluded from doing so by a contrary federal court judgment. The state court’s interest in accepting a certified question for review is particularly strong when it has not yet had the opportunity to interpret the pertinent statutory language. Dorman v. Satti, 862 F.2d 432, 434-35 (2d Cir.1988), cert. denied, 490 U.S. 1099, 109 S.Ct. 2450, 104 L.Ed.2d 1005 (1989). Whether or not the question is certified, the subject warrants further legislative study and clarification. C. The Manville Personal Injury Settlement Trust For purposes of the General Obligations Law, the Manville Trust should be treated as a settling defendant in any case where it was not a defendant actually on trial. The Trust was not a defendant at trial in the Phase II and Phase III trials. At the time of these fifteen trials the settlement of the class action involving the Manville Trust had been almost completely resolved and fairness hearings had been held. For all practical purposes these cases had been, and should be deemed to have been, settled before trial. By contrast, the sixty-four Phase I cases in which the Trust actually participated as a defendant should be deemed to have been settled after trial and the jury verdicts. As indicated below, the timing of the settlement is significant. Since it is unlikely that this problem will arise again, a pragmatic resolution of the Manville Trust allocation is desirable. 1. Phase II and Phase III Trials Neither the Trust nor Manville Corporation is currently in bankruptcy. While virtually insolvent, over time the Trust will pay a substantial percentage of its fair share of damages in accordance with the terms of a class Stipulation of Settlement. See Findley v. Blinken, 129 B.R. 710 (E. & S.D.N.Y.1991) (Amended Memorandum, Order and Final Judgment). Assuming that the Settlement is approved, payments are expected to begin on Level One (serious) claims within the first year and on Level Two (less serious) claims in the third year following entry of a final, nonappealable order. Treating the Trust as a settling defendant under these circumstances, even though the settlement amounts have not yet been fixed in negotiations between the Trust and plaintiffs, raises the question of how to determine the value of the amount plaintiffs will receive from the Trust in Phase II and III cases in order to calculate the proper credit to allot non-settling defendants. This is another aspect of the equitable allocation of the total damage award that the court must calculate pursuant to General Obligations Law section 15-108. Cf. In re Joint Eastern & Southern Dist. Asbestos Litig. (Gallin), 760 F.Supp. 33, 34-35 (E.D.N.Y.1991) (pursuant to G.O.L. § 15-108, court determines the value of settlement with Manville Trust to be paid over time; accepts face value of settlement rather than discounted value). The precise amount that each plaintiff will receive from the Trust in settlement cannot be reduced to a sum certain in light of the structure of the class action Settlement. See In re Joint Eastern & Southern Dists. Asbestos Litig., 120 B.R. 648, 670 Appendix C (E. & S.D.N.Y.1990) (Trust Distribution Process, § A: “Predictions of the number of future claims and their severity and of values to be achieved for Trust assets remain difficult to make with precision, so no guaranty of any specific level of payment can be made.”). Nevertheless, extensive evidence was