After Katrina

 

Issue #1
September 23, 2005

Legal News

Table of Contents

Emergency Government Contracting

Emergency Environmental Orders

Real Estate

Katrina Lawsuits

Louisiana and Mississippi Courts: Changes in Legal Delays

Status of Courts Impacted by Hurricane Katrina

Contact Information

After Katrina Legal News is a Phelps Dunbar publication intended to inform and advise our clients and friends of legal issues and information related to Hurricane Katrina and the rebuilding of the Gulf Coast.  This newsletter is published as a service to clients and friends of Phelps Dunbar LLP, and should not be construed as legal or professional advice or as opinion on specific fact.

A Message to Our Clients and Friends:

The past three weeks have been extraordinarily challenging for all of the residents of the Gulf Coast. The challenges continue with Hurricane Rita bearing down on Texas and Louisiana as this publication is being finalized. At Phelps Dunbar we have been greatly bolstered by the expressions of concern, sympathy and support we have received from so many of you. We are deeply grateful.

We are pleased to report that all of the attorneys and staff of our New Orleans and Gulfport offices were safely evacuated in the days before and after Katrina's landfall. Our offices in both cities suffered minimal damage, and we intend to re-open at the earliest practical date. In the interim, New Orleans attorneys are working in the firm’s offices in Baton Rouge (225-346-0285 or 800-482-0518) and Houston (713-626-1386 or 800-413-6407), and are fully operational. Gulfport attorneys have relocated to the Jackson office (601-352-2300 or 800-849-9750). You may contact attorneys through the same e-mail addresses as before the storm or staff at any of our offices will connect you with any of our attorneys.

Emergency Government Contracting

Contracting with federal agencies normally involves cumbersome procurement rules that dictate (1) what method an agency must use to solicit a contract; and (2) how the agency is to negotiate or award a contract. Usually, competitive bidding is required. Hurricane Katrina has triggered emergency rules allowing for streamlined public procurement procedures and less (and at times, no) competition.

Federal procurement in the areas devastated by Hurricane Katrina meets the definition of a "contingency operation." Consequently, federal agencies may contract using the following procedures.

  • Contracts up to $250,000 without competitive bids.

  • Davis-Bacon Act (Minimum Wage Law) suspended.

  • Commercial Items: "Simplified acquisition procedures" may be utilized for purchases up to $10 million. Competition may not be required under certain conditions. Commercial items may include services.

  • Oral requests for proposals are permissible.

  • Exemption from registration in the CCR Database.

  • Advertisement of contracting opportunities not required.

  • Preference for contracting with local businesses and individuals in the affected areas.

  • Award of letter contracts.

  • Contracts in excess of $10 million with minimal competition.

  • Grants to state and local governments. Money in the form of "grant assistance" will be provided to state agencies, local governments, and certain private facilities (for example, hospitals, schools, and water/sewer systems).

By executive order, Louisiana Governor Kathleen Blanco has also suspended certain restrictions on state procurements.

The following articles below include a more detailed examination of government contracting procedures after Katrina and useful government web sites and contact information. 

Government Contracts with Homeland Security, FEMA and Other Federal Agencies for Hurricane Katrina Projects

Contact Information for Hurricane Katrina Recovery Contracting Opportunities

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Emergency Environmental Orders

On August 30, 2005, the Louisiana Department of Environmental Quality (LDEQ) issued emergency guidelines addressing environmental concerns such as waste water treatment and solid and hazardous waste management. The order also extends certain monitoring and reporting deadlines. The Mississippi Commission on Environmental Quality issued a similar set of emergency guidelines on September 13. On September 19, LDEQ provided additional guidance for owners and operators of underground storage tanks affected by Hurricane Katrina.

The LDEQ has issued special exemptions relating to oil and gas wells affected by Katrina. The exemptions relax restrictions regarding gas venting, oil movement, commingling of production and disposal of product water.

The United States Army Corps of Engineers (USACE) on September 3 adopted an emergency procedure for expedited permitting work requiring approval under the Rivers and Harbors Act and Clean Water Act.

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Real Estate

The massive property damage caused by Hurricane Katrina and the mandatory evacuation orders issued by several government units have generated multiple complex real estate issues. If a property has been damaged or otherwise made unavailable, a lessee may be entitled to rent abatement. Likewise, property damage may involve casualty provisions in mortgages and leases and generate issues as to application and entitlement as between mortgagor/mortgagee and lessor/lessee. These issues are typically fact-intensive and could only be addressed with reference to the specific lease or mortgage. Phelps Dunbar has a team of experienced real estate, financing and tax lawyers prepared to provide advice on these and other real estate issues.

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Katrina Lawsuits

The first of what is expected to be a multitude of lawsuits relating to Hurricane Katrina have been filed. The Attorney General of Mississippi has sued numerous insurance companies in state court seeking to void exclusions in property casualty insurance policies. Private class action law suits have been filed in Louisiana seeking declaratory judgment that damages caused by waters entering New Orleans because of breaches in the levee system are covered by homeowner insurance policies. A federal class action suit has been filed against oil and gas pipeline companies and oil and gas exploration companies for damages caused to Louisiana's wetlands by the creation of pipeline and access canals, which allegedly contributed to destruction caused by Hurricane Katrina. Class action suits have been filed against oil companies and oil well operators relating to some of the 44 reported oil spills caused by the storm, including five spills classified by the Coast Guard as "major" (over 100,000 gallons), and four spills classified as "medium" (10,000 to 100,000 gallons).

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Louisiana and Mississippi Courts: Changes in Legal Delays

Due to the impact of Katrina upon the court systems, Louisiana and Mississippi have enacted emergency procedures. These procedures have the general effect of extending filing and other deadlines. In Louisiana, these procedures have the effect, to a limited extent, of suspending statute of limitations and preemptive deadlines. You can view the pertinent orders at:

www.gov.state.la.us/workonkatrina%20.asp (Louisiana) and

www.mssc.state.ms.us/news/katrinaorder.pdf (Mississippi).

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Status of Courts Impacted by Hurricane Katrina

Federal Courts

United States Court of Appeals, 5th Circuit. The United States Court of Appeals, 5th Circuit has relocated from New Orleans to Houston, Texas. The Court will be closed Friday, September 23rd, 2005 due to the projected path of Hurricane Rita.

Mississippi. The United States District and Bankruptcy Courts for the Northern District of Mississippi are open and operational. In the Southern District of Mississippi (Gulfport and Hattiesburg) operations of both the District and Bankruptcy Courts are suspended through October 2.

Louisiana. The New Orleans office of the United States District Court for the Eastern District of Louisiana is closed until further notice. The Court has established temporary offices in Lafayette, Baton Rouge and Houma, Louisiana. The United States Bankruptcy Court for the Eastern District of Louisiana is operating from the office of the Bankruptcy Court for the Middle District of Louisiana in Baton Rouge. The Bankruptcy Courts for the Middle and Western Districts are open.

Texas. The following divisions of USDC, Southern District of Texas are closed until further notice: Corpus Christi, Galveston, Houston, and Victoria. All other divisions are operating on their normal weekday schedules. All divisions of USDC, Northern District of Texas are operating on their normal weekday schedules.

 

State and Other Local Courts

The Mississippi Supreme Court and the Mississippi Court of Appeals are open and fully operational. All Mississippi Circuit and Chancery Courts are open and operational. Some Courts on the Mississippi Gulf Coast are operating under special procedures and in other temporary locations. The Harrison County Justice Court is closed until further notice.

The Supreme Court of Louisiana is closed until October 1, 2005. Also closed until October 1, 2005 (or later) are the appellate and district courts in the New Orleans Metropolitan Area.

Texas: courts in Galveston, Brazoria, Fort Bend and others immediately affected by the arrival of Hurricane Rita are closed.

 

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Contact Information

As we prepare for the reopening of our offices in New Orleans and Gulfport, we thought it would be helpful to furnish you with contact information should you need to reach a Phelps Dunbar attorney:

Baton Rouge, Louisiana
City Plaza
445 North Boulevard, Suite 701
Baton Rouge, Louisiana 70802
(225) 346-0285
Fax (225) 381-9197

Jackson, Mississippi
111 East Capitol Street
Suite 600
Jackson, Mississippi 39201-2122
(601) 352-2300
Fax (601) 360-9777

Houston, Texas
3040 Post Oak Boulevard
Suite 900
Houston, Texas 77056
(713) 626-1386
Fax (713) 626-1388
 

Tupelo, Mississippi
One Mississippi Plaza
Seventh Floor
Tupelo, Mississippi 38804
(662) 842-7907
Fax (662) 842-3873

Tampa, Florida
100 South Ashley Drive
Suite 1900
Tampa, Florida 33602-5311
(813) 472-7550
Fax (813) 472-7570

London, England
Lloyd's, 1 Lime Street, Suite 903
London EC3M 7DQ
England
011-44-207-929-4765
Fax 011-44-207-929-0046
 

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