Justice s Army Corps not liable for Katrina damage, appeals panel finds

New Orleans residents were dealt a setback Monday when a federal appeals panel, upending its own earlier decision, ruled that the US Army Corps of Engineers cannot be sued for damages stemming from losses sustained after hurricane Katrina.

Gerald Herbert/AP

Five hurricane Katrina survivors seeking government compensation for lost property and livelihoods were dealt a setback this week, as a federal appeals panel absolved the US Army Corps of Engineers from liability for damages stemming from failure of the flood-control system that protects New Orleans.

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