A New Orleans court last week affirmed a $75.3 million settlement judgment for residents of homes built on a former toxic landfill who filed a class-action lawsuit against the city, Housing Authority of New Orleans and Orleans Parish School Board.
Judge D. Nicole Sheppard of the Civil District Court for the Parish of Orleans issued the opinion March 14, turning down defendants’ arguments that granting the judgment would deprive them of due process.
“The argument’s premise is that granting summary judgment will deprive defendants of the ability to seek discovery from each claimant and have them prove their entitlement to compensation,” Sheppard’s opinion states. “Relying on the fact that trials occurred in the past for later-added class members, defendants’ ultimate contention is that summary judgment is premature … since they have not engaged in discovery for these claimants. The court disagrees.”
It’s unclear if the defendants will challenge the settlement, which aims to provide residents compensation for emotional distress and loss of property values after decades of litigation.
“The city is reviewing the judgment and weighing our options,” Beau Tidwell, the city’s spokesman, told the Louisiana Record in an email. “We have no further comment at this time.”
Residents of two neighborhoods built on the landfill – Gordon Plaza and Press Park – would receive differing compensation based on how long they lived or worked in the communities, according to the terms of the settlement. Those who lived in the communities for more than 20 years would receive $25,000 for emotional distress, while those who lived in the area for shorter amounts of time would receive less.
Gordon Plaza residents would receive 20% of the present-day value of their homes as well, and Press Park residents would receive 20% of the value of their homes as they existed prior to Hurricane Katrina, according to court documents. Those living in adjacent areas would receive $1,250 for emotional distress and 10% of the fair-market value of their homes.
The Gordon Plaza neighborhood was completed in 1981. Once residents moved in, however, they reported respiratory problems, cancer incidences and exposure to carcinogens in the air and water, according to a website managed by a residents’ group. The subdivision was envisioned originally as a way to provide low-income residents with affordable homes.
“Defendants’ arguments against the grant of summary judgment are a disguised attempt at litigating the issue of liability, which the court rejects,” Sheppard’s opinion says.