A notification program about a proposed partial settlement began on Jan. 5 as ordered by Judge Stanwood R. Duval, Jr., in the United States District Court, Eastern District of Louisiana to alert those affected by flooding due to any failures or overtopping of levees that occurred within the Parishes of Jefferson, Orleans, Plaquemines and St. Bernard, Louisiana resulting from Hurricane Katrina and/or Hurricane Rita.

The lawsuit alleges levees and other flood and water control structures failed and/or were overtopped as a result of Hurricanes Katrina and Rita because they were not properly designed, inspected, or maintained, and that this failure caused property loss, property damage and personal injury. The Settling Defendants say that the levees failed for reasons beyond their control and that they did not do anything wrong.

The Class has been divided into separate Subclasses. Those affected may be included in one or more Subclass. The Subclasses include anyone who has or may have claims against: Subclass 1 – the Lake Borgne Basin Levee District, the Lake Borgne Basin Levee District Board of Commissioners, and/or their insurer; Subclass 2 – the East Jefferson Levee District, the East Jefferson Levee District Board of Commissioners, and/or their insurer; and Subclass 3 – the Orleans Levee District, the Orleans Levee District Board of Commissioners, and/or their insurer.

Under the settlement, a settlement fund worth approximately $20.8 million will be established for the benefit of the Settlement Class, as well as to cover costs and expenses. Under the settlement, the Court will confirm that this settlement fund represents all insurance money available to the Settling Defendants. Under law, the Settlement Class can get no additional money or property in this settlement because the Settling Defendants are governmental bodies.

Notices informing Settlement Class members about their legal rights will be mailed, and are scheduled to appear in local newspapers leading up to hearings on April 2, 2009, when the Court will decide whether to approve or certify the Settlement Class and, if so, whether to grant final approval to the settlement. The hearings may be moved to a different date or time without additional notice, so it is a good idea to check www.LeveeBreachClass.com.

If the settlement is approved, the Court will appoint an independent “Special Master” to oversee the settlement fund. The Special Master will recommend to the Court how to administer the settlement fund for the benefit of the Settlement Class. The Court may request that a second notice be issued to Settlement Class members explaining how the settlement fund will be used or administered.

Special Reports /

Katrina Settlement Notification Begins

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