New Orleans Files $77 Billion Claim Against Army Corps Of Engineers

"Submitting a claim for a staggering $77 billion, the city of New Orleans joined tens of thousands of would-be plaintiffs who rushed to beat a Thursday deadline to alert the Army Corps of Engineers that they may sue for losses resulting from levee breaches."

"Also joining the queue were Entergy New Orleans, the city's bankrupt electrical utility, which is seeking $655 million, and the New Orleans Sewerage & Water Board, which put in a claim of about $460 million, spokesmen for the agencies said."

"Hours before the cut-off time, enough bags and boxes of claim forms had arrived to fill an 8 foot-by-10 foot room, corps spokeswoman Kathy Gibbs said. The filing frenzy would have been unthinkable just a few weeks ago."

"Until recently, the idea of suing the Army Corps of Engineers was dismissed by most lawyers as a non-starter. They pointed to a 1928 federal law immunizing the corps from lawsuits stemming from its flood-control projects."

"But early last month, U.S. District Judge Stanwood Duval ruled that the corps has no such protection when it comes to lawsuits over problems caused by its navigation projects."