FEMA trailer litigation nears end

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A class-action settlement agreement has been reached to resolve nearly all the remaining court claims over allegations that government-issued trailers exposed Gulf Coast residents to hazardous fumes after Hurricane Katrina, a lead plaintiffs' attorney said Monday.

The attorney, Gerald Meunier, told The Associated Press that plaintiffs' lawyers and several companies that manufactured FEMA trailers after the 2005 storm will ask U.S. District Judge Kurt Engelhardt to approve an expanded version of a multimillion-dollar deal initially announced in April. Documents outlining the agreement will be filed late Monday, he said.

Nearly two dozen FEMA trailer makers agreed last month to pay a total of $14.8 million to resolve claims over elevated formaldehyde levels in FEMA trailers following hurricanes Katrina and Rita.

Monday's expanded settlement agreement includes claims against trailer manufacturers Gulf Stream Coach Inc., Forest River Inc., Jayco Inc. and Monaco Coach Corp. FEMA contractors Shaw Environmental Inc., Bechtel Corp., Fluor Enterprises Inc. and CH2M Hill Constructors Inc. also have reached agreements with the plaintiffs' lawyers, according to Meunier.

Residents of Louisiana, Texas, Alabama and Mississippi who lived in FEMA trailers after the 2005 hurricanes are eligible to participate.

Meunier estimates that roughly 60,000 plaintiffs could benefit from the entire settlement. He said the deal is a "positive development" for residents even if the amount of compensation is lower than many had anticipated when the case started nearly five years ago.

FEMA, which isn't a party in the settlement, downplayed formaldehyde risks for months before those test results were announced in February 2008. As early as 2006, trailer occupants began reporting headaches, nosebleeds and difficulty breathing.