It has been 4 years since Hurricane Katrina ravaged New Orleans and the long running dispute over how much FEMA owes Louisiana for the damage inflicted on Charity Hospital is still unresolved.
It is expected Louisiana will use a new binding arbitration process established for resolving disputes between the Federal Emergency Management Agency and state and local officials. FEMA is in the business of facilitating the recovery of the community.
The Federal Government will be issuing regulations by the end of the month describing the arbitration process. At that point, the state will have to decide whether to appeal previous FEMA decisions on Charity and other big ticket projects or go to arbitration.
If arbitrated, a binding, non-appealable decision would be made within 60 days. The arbitration panel will be comprised of 3 judges. The State of Louisiana argues that it is owed $492 million for the replacement of Charity Hospital. FEMA’s last offer was $150 million. The state wishes to proceed with building a new teaching hospital in Mid-City.
Arbitration, in this instance, will provide a quick access to a hearing and an opinion for resolution. The judges selected to arbitrate should have expertise in the subject matter, controversy, and claim being arbitrated. A decision will be made in 60 days.
Richard J. Arsenault, 2011
