A federal appeals court reversed itself last month, throwing out a judge’s landmark ruling that the Army Corps of Engineers was liable for billions of dollars in Hurricane Katrina flood damage that property owners blame on the corps’ maintenance of a New Orleans shipping channel. The same three-judge panel from the 5th U.S. Circuit Court of Appeals had ruled for the plaintiffs earlier this year, but withdrew that decision and replaced it with a new ruling which is in the federal government’s favor. The panel’s new opinion says the corps is completely insulated from liability by a provision of the Federal Tort Claims Act called the “discretionary-function exception.”
Source: Insurance Journal
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