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Arbitration Panel Rules in Favor of Bay-Waveland Schools

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.