Arbitration

Bill Barrow, reporting for the Times Picayune, writes that an arbitration system has been established to settle disputes over damages from hurricanes Katrina and Rita that are in excess of $500,000. The new system was pushed for by Sen. Mary Landrieu and was announced by her and U.S. Homeland Security Secretary, Janet Napolitano. The arbitration process will not be public, though the decisions will be published. The Civilian Board of Contract Appeals will provide most of the arbitrators. Prior to this disputes were brought before internal FEMA appeals board. It is hoped the new system will expedite settlements and free up money intended for infrastructure repairs.

Louisiana has 30 pending appeals, including on Charity Hospital and the Tulane University library, and another 3,000 projects with disputed project worksheets, which put in writing the work FEMA agrees to pay for.

More here.

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