Hearings Resumed on Shiley Fund

A federal judge in Cincinnati resumed hearings Monday on the fairness of a proposal to establish a $205-million fund to compensate recipients of potentially defective Shiley heart valves.

Under the plan, Shiley Inc. in Irvine and its parent company, Pfizer Inc. in New York, would pay $75 million for research and valve replacement surgery and an additional $80 million to $130 million for physician consultations and anxiety-related medical expenses.

An independent panel, appointed by federal judge S. Arthur Spiegel, would recommend whether a recipient should have a valve replaced. The two companies also would set aside $300 million more for patient or survivor claims. The hearings are to resume today.

Meanwhile, an Irvine law firm representing nearly 300 implant recipients has yet to reach an agreement with Pfizer attorneys that would modify the settlement proposal.