Levee Case Settlement Approved

NU Online News Service, Sept. 15, 3:41 p.m. EDT

U.S. District Court Judge Stanwood R. Duval Jr. in New Orleans has given approval to settlement of class-action lawsuits against several Louisiana levee boards for damage from Hurricanes Katrina and Rita.

The $20 million settlement is $2 million less than plaintiff attorneys had sought. The lawyers had contended that St. Paul, now Travelers, an insurer for the boards, was responsible for $1 million in coverage for three separate levees, or $1 million for a single "premises." The judge rejected that argument.

Joseph Bruno, a plaintiffs lawyer, said there are an estimated 500,000 claimants, to split settlement monies.

According to Mr. Bruno, a court-appointed "special master" would decide how to distribute proceeds from the settlement with the Orleans, East Jefferson and Lake Borgne levee districts.

The settlement does not include separate claims against the Army Corps of Engineers over damage from levee failures.