In re Katrina Canal Breaches Consolidated Litigation

263 F.R.D. 340, 2009 U.S. Dist. LEXIS 88866, 2009 WL 2922305
District Court, E.D. Louisiana·Decided September 8, 2009·No. Civil Action No. 05-4182·Published·Cited by 2 cases

Opinion

[343]*343 ORDER AND REASONS

STANWOOD R. DUVAL, JR., District Judge.

Before the Court is a Motion for Approval of a Proposed Class Action Settlement (Rec. Doc.16647) (“Mot.”). This proposed class settlement represents the first recovery against a government agency that has been charged with liability arising out of Hurricanes Katrina and Rita. While the prospect of a recovery more than four years after these storms is long due, any such hope must be tempered by the fact that this settlement, as a limited fund settlement, will bind all putative class members without the ability to opt-out, and it will substantially end the claims arising out of Hurricanes Katrina and Rita against three levee districts and their insurer.

I. FACTUAL BACKGROUND

The present motion seeks the approval of a class action settlement for the residents of the greater New Orleans area and surrounding parishes who were harmed by the levee breaches that occurred during Hurricanes Katrina and Rita. Under the In re Katrina Canal Breaches Consolidated Litigation umbrella, two of the myriad categories of cases are denominated “LEVEE” and “MRGO.” The LEVEE litigation concerns breaches of floodwalls around the outfall canals in and around New Orleans. The Plaintiffs filed class actions against the U.S. Army Corps of Engineers (“the Corps”), various levee districts and their respective boards of commissioners, the Sewerage and Water Board of New Orleans, the Port of New Orleans, the New Orleans Public Belt Railroad, CSX Transportation, and private contractors and engineers. The multitude of complaints was consolidated into one Master Class Action Complaint. Rec. Doc. 3420.1 In the course [344]*344of this litigation, this Court has issued orders dismissing the claims against all of these defendants except for the levee districts and the Sewerage and Water Board of New Orleans.2

The second category, likewise, is an amalgam of all of the suits filed against the United States of America for the defalcations of the Corps, Washington Group International, Inc. (“WGI”), the Board of Commissioners of the Orleans Parish Levee District, the Board of Commissioners of the Lake Borgne Basin Levee District, and St. Paul Fire and Marine Insurance Company for damages allegedly caused by the MR-GO with the various failures and overtopping of the levees and floodwalls along the MRGO, the east bank of the Inner Harbor Navigational Canal (“IHNC”) and the levees along the area bordering New Orleans East. Rec. Doc. 3415, as amended by Rec. Doc. 11471. The Court granted WGI’s Motion for Summary Judgment concerning the IHNC breaches on December 15, 2008. Rec. Doc. 16723. If the present settlement dismissing the levee districts is approved, the only remaining defendants in the MRGO category will be the Corps.

The motion before the Court proposes a settlement between the Plaintiffs and the levee districts along with their insurer. The motion is made on behalf of the Putative Class Plaintiffs and the following Settling Defendants: Board of Commissioners of the Orleans Levee District, the Orleans Levee District, the Board of Commissioners of the Lake Borgne Basin Levee District, the Lake Borgne Basin Levee District, the Board of Commissioners of the East Jefferson Levee District, the East Jefferson Levee District, and St. Paul Fire and Marine Insurance Company.3 Mot. at 17. The Plaintiffs and Settling Defendants shall be referred to collectively as “Movants” herein. The Court issued a Preliminary Order of Certification of a Settlement Class on December 15, 2008 (Rec.Doc.16721). Counsel James Irvin on behalf of one group of objecting plaintiffs4 (“Sims Objectors”) filed objections to the preliminary certification. (Rec.Doc.18134, 18138). Likewise, Counsel Jennifer Rosenbaum and Michael Kirkpatrick filed objections on behalf of objecting plaintiffs Mary Brinkmeyer, Michelle LeBlanc, and Thomas Stuart (“Brinkmeyer Objectors”) (Rec.Doc. 18179). On March 31, 2009, Plaintiffs and Settling Defendants filed a memorandum in support of their request for certification of the settlement class (Rec.Doe.18356).

The Movants propose a class area of four parishes: Orleans, Jefferson, Plaquemines, and St. Bernard. Mot. at 9. The putative class includes “all Persons (a) who at the time of Hurricane Katrina and/or Hurricane Rita (i) were located, present or residing in the [class area], or (ii) owned, leased, pos[345]*345sessed, used or otherwise had any interest in homes, places of business or other immovable or movable property in the [class area], and (b) who incurred any losses, damages and/or injuries arising from ... Hurricane Katrina and/or Hurricane Rita and any alleged Levee Failures and/or waters that originated from ... the Levees under the authority and/or control of all or any of the Levee Defendants.” Mot. at 4. The Movants also propose three subclasses grouped with regards to which levee defendant caused their damage. Subclass 1 corresponds to Lake Borgne Basin Levee District, Subclass 2 concerns East Jefferson Levee District, and Subclass 3 applies to Orleans Levee District. A class plaintiff can be a member of more than one subclass. Mot. at 4.

This Court held a class certification and settlement fairness hearing on April 2, 2009. The Court received approximately ninety exhibits and heard from five witnesses, three of which were admitted as experts. (Rec.Doc. 18495). Eight notices of intent to appear at the hearing were sent by parties at interest to the settlement; the Court provided all such parties an opportunity to be heard. (Rec.Doc.18532). The Court further received 185 submissions for individual class members, expressing both support and disapproval of the proposed settlement. The Brinkmeyer Objectors filed a post-hearing brief in opposition to the class certification and settlement (Rec.Doc.18745), as did the Sims Objectors (Rec.Doc.18779). The Plaintiffs and Settling Defendants filed a joint supplemental memorandum in support of their settlement plan (Rec.Doc.18910), and they submitted Proposed Findings of Fact and Conclusions of Law (Rec.Doc.19072, 19133). The Sims Objectors filed objections to the Proposed Findings of Fact and Conclusions of Law (Rec.Doe.19180), and the Brinkmeyer Objectors also filed objections (Rec.Doc.19182). Plaintiffs’ and Settling Defendants filed a brief reply (Rec.Doc.19184).

II. ANALYSIS

The Court has before it a proposed class settlement. Rule 23(e) provides that a class action may be “settled, voluntarily dismissed, or compromised” only with the court’s approval and after notice of the settlement or compromise has be given to the proposed class. Fed.R.Civ.P. 23(e). The Supreme Court has explained that Rule 23(e) is “an additional requirement, not a superseding direction,” thus a district court must also determine whether the class fulfills Rule 23(a) and (b). Amchem Prods., Inc. v. Windsor, 521 U.S. 591, 621, 117 S.Ct. 2231, 2248, 138 L.Ed.2d 689 (1997). “[T]he party seeking certification that bears the burden of establishing that the requirements of Rule 23 have been met.” Gene & Gene LLC v. BioPay LLC,

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In re Katrina Canal Breaches Consolidated Litigation, 263 F.R.D. 340, 2009 U.S. Dist. LEXIS 88866, 2009 WL 2922305 (E.D. La. 2009).

263 F.R.D. 340 (In re Katrina Canal Breaches Consolidated Litigation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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