Companies to pay $14.8M in FEMA trailer settlement

Nearly two dozen companies that manufactured government-issued trailers for storm victims after Hurricane Katrina have agreed to pay $14.8 million in a proposed class-action settlement over claims that the temporary shelters exposed occupants to hazardous fumes. Plaintiffs’ attorney Gerald Meunier says the agreement could benefit tens of thousands of Gulf Coast residents who lived in travel trailers provided by the Federal Emergency Management Agency after hurricanes Katrina and Rita in 2005. Meunier says 21 trailer makers or their insurers will pay to resolve the claims without any admission of wrongdoing. A court filing Friday asks U.S. District Judge Kurt Engelhardt to give his preliminary approval to the deal, which would be the largest mass settlement of claims over formaldehyde levels in FEMA trailers so far. The chemical, commonly found in building materials, can cause breathing problems and is classified as a carcinogen. The companies involved in the proposed settlement come from Ohio, Indiana and Missouri. The proposed settlement doesn’t involve the federal government or resolve all pending claims against other companies that provided FEMA with travel trailers after Katrina. Residents of Louisiana, Texas, Alabama and Mississippi who lived in FEMA trailers after the 2005 hurricanes are eligible to participate. If Engelhardt gives his final approval, a court-appointed special master would determine how much to award each qualifying plaintiff. Up to 48% of the settlement funds paid by the defendants would cover attorneys’ fees and costs. Read the full story here.