A federal arbitration panel ruled today in favor of the Bay-St.
Louis-Waveland Mississippi School District in a historic case
involving the Federal Emergency Management Agency and damages
caused by Hurricane Katrina. The ruling by a three-judge
panel of the United States Civilian Board of Contract Appeals found
that FEMA must allow the school district to repair damaged roofs,
windows, and siding at three campuses. The estimated value of
the repairs is $6.9 million. The District plans to use the
panel's award to restore the school facilities at Bay High,
Bay-Waveland Middles School, and Waveland Elementary, to their
"predisaster condition."
The District was successfully represented by Ridgeland-based
Butler, Snow, O'Mara, Stevens and Cannada, PLLC with Ronald J. Artigues Jr. and Mark W. Garriga serving as lead counsel.
"This decision is a milestone for continued rebuilding
efforts along the Gulf Coast," Garriga said. "There was
no dispute that the scope of devastation visited on the
Bay-Waveland School District by the eye of Hurricane Katrina was
massive in scale."
"For the most part, rebuilding on the Coast has been a
collaborative and joint effort between FEMA, MEMA, and the affected
communities. We hope that this ruling will serve as an
encouragement to other communities and counties in Mississippi and
along the Gulf Coast as they seek to complete school, hospital and
infrastructure repairs," Garriga stated.
The case is among the first to be heard before the arbitration
panel, and the landmark case was watched and monitored by groups
across the country. U.S. Department of Homeland Security Secretary
Janet Nepolitano announced the formation of the arbitration process
in early August 2009, following a congressional directive included
in the 2009 stimulus bill. The primary objective of the legislation
is to expedite recovery efforts within the Gulf Coast Region by
resolving outstanding disputes over public assistance claims
stemming from the aftermath of Hurricanes Katrina and Rita.
"With our vast experience as a firm and our extensive
knowledge of the American Recovery and Reinvestment Act, we had the
expertise to help the Bay-Waveland School District take advantage
of this new opportunity," Artigues said.
The new arbitration process was created by the American Recovery
and Reinvestment Act of 2009 and provides final adjudication of
particular disputes involving projects in excess of $500,000 by an
independent, neutral panel of arbitrators. The United States
Civilian Board of Contract Appeals provides the arbitration
services through three judge panels. U.S. Senators Thad Cochran and
Roger Wicker welcomed the action.
The decision of the majority of the arbitration panel is
considered to be a final decision, binding on all parties. Butler
Snow counsel argued at the arbitration proceeding conducted in
Washington, D.C., in early January of this year that the proof
presented in the course of the arbitration proceeding raised
serious questions about the manner in which FEMA conducted the
re-inspection of the Bay-Waveland School District facilities.
Butler Snow has represented the Bay-Waveland School District and
the City of Waveland since 1995. The firm has served as counsel to
more than two-thirds of the counties and numerous cities in the
state of Mississippi as well as school districts, utility and
economic development districts.
Prior to the storm, Bay-Waveland School District educated
approximately 2,400 students kindergarten through 12th grade at six
campuses with a total annual budget of $17-$18 million. The
aftermath of the storm disrupted normal tax collections. In
addition, the slow pace of reimbursement from FEMA forced the
financially-strapped school district to fund a significant portion
of urgent repairs out of pocket.
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