NU Online News Service, April 17, 3:48 p.m. EDT
The January agreement for government units in charge of New Orleans levees to pay something to property owners damaged by the flooding from Hurricanes Katrina and Rita is now mired in a coverage dispute.
Jerry Meunier, a court appointed plaintiffs' counsel in the federal class action, said an argument has developed over whether an additional $2 million should be part of the $20 million settlement involving St. Paul, now Travelers insurance.
At issue, he said, is whether one of the policies involved provides $1 million coverage for a single "premises" of interconnected levees or whether, as the plaintiffs contend, three separate levees and coverage of $3 million is involved.
Mr. Meunier said U.S. District Court Judge Stanwood R. Duval Jr. in New Orleans has set a schedule for lawyers to submit briefs on settlement issues by May 19.
He said he did not believe there would be a decision before August. The proposed class settlement, he said, is one that does not allow class members to opt out.
Once a no-opt-out settlement is approved, he said there will still be a question of what attorneys in the case will be paid. He said plaintiff lawyers on the case have agreed to waive fees but have reserved the right to recover expenses they have advanced to pay for items such as defense expert witnesses.
He said experts have testified at hearings that the property owners affected by levees broken and overtopped by flood waters totaled roughly one million persons and that economic damages in the class area amounted to $44.6 billion.
Mr. Meunier said earlier this month at a settlement hearing objectors to the agreement had called for the levee districts to pay additional monies over and above the amount available from insurance coverage.
However, he said that legally there is no way for a seizure of more cash from the districts and the levee boards had testified they would not pay anything additional because any money they removed from their budget to pay claims would diminish their ability to provide for levee safety.
The settlement involves cases brought against the Orleans Levee District, the Board of Commissioners of the Orleans Levee District, the Lake Borgne Basin Levee District, the Board of Commissioners of the Lake Borgne Basin Levee District, the East Jefferson Levee District, the Board of Commissioners of the East Jefferson Levee District, their insurer, and all related people.
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