Katrina Ruling Could Bring New Deluge Of Lawsuits

 

CAIN BURDEAU

NEW ORLEANS (AP) — A landmark court ruling blaming the Army Corps of Engineers' "monumental negligence" for some of the worst flooding from Hurricane Katrina could lead to a new deluge: billions of dollars in legal action from thousands of storm victims.

The federal judge's harshly worded decision also served as vindication for residents of St. Bernard Parish and the Lower 9th Ward in New Orleans who have long argued that Katrina was largely a man-made disaster, caused by the federal government's failure to maintain the levees protecting the city.

"Finally, somebody has said the truth," said Catherine Serpas, 67, whose family runs a bicycle and lawnmower store in Chalmette, La. She said the Army Corps' work on a 76-mile channel called the Mississippi River-Gulf Outlet "destroyed the family life we knew. St. Bernard will never be what it used to be."

New Orleans Mayor Ray Nagin told CNN the ruling would "open the floodgates" for people in the Lower 9th Ward to seek "proper compensation."

"If this is allowed to stand, I think you will see a multitude of lawsuits, the City of New Orleans included," Nagin said.

A Corps of Engineers spokesman said the agency and the Justice Department were reviewing the ruling and would not comment because issues in the case were still subject to litigation.

TheStreet Premium Services    For Personal Service: 877-471-2967

Jim Cramer
Jim Cramer's Action Alerts PLUS:
Trade right alongside a Wall Street pro — enjoy access to his Charitable Trust portfolio and be sent trade alerts BEFORE he makes a move. Learn More
New: ETF Profits
ETF Profits:
Get money-making ideas from the hottest investment vehicle on the planet. Our experts show you how to play various ETF sectors to help pump-up your portfolio. Learn More
OptionsProfits
OptionsProfits:
Get 50+ trade ideas a week from the industry's top options experts. Plus — exclusive commentary on market trends and essential trading tools. Learn More
Doug Kass
Real Money:
Our team of professional Wall Street Pros — including Jim Cramer, Doug Kass, and Nicholas Vardy — delivers intelligent analysis, timely trade ideas, and colorful commentary. Learn More
Stocks Under $10
Stocks Under $10:
Break into the market with small- and mid-cap stocks... all $10 or less! David Peltier tells you exactly which low-priced stocks he's buying and selling. Learn More
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
blog comments powered by Disqus
Dow Jones S&P 500 NASDAQ 10-Year Note
12,763.05 1,340.64 2,902.74 19.91
Oil *
117.15
DOWN
127.41
DOWN
11.31
DOWN
24.49
DOWN
0.56
10 Yr
1.99%
SPDR Gold
166.86
-0.99%
-0.84%
-0.84%
-2.74%
Data delayed 20 minutes

Top Stories and Tools

Brokerage Partners

After the Bell

Before the Bell

Booyah! Newsletter

ETF Daily

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

We respect your privacy.
Podcasts

Connect with TheStreet