The justices of the Supreme Court had rejected the appeals filed by Xavier University along with 68 other individuals and businesses that were damaged during Hurricane Katrina. They were seeking that the lawsuits against insurance companies to go forth. It was ruled by the lower court that the insurance policies did not cover damages by flooding. However, the flooding was caused due to the failed levees. The levees were made to withstand up to category 3 hurricanes while Hurricane Katrina was category 5.
The suit filed against the insurance companies had said that man-made failures should also be covered. So far, the 5th United States Circuit Court of Appeals had given the ruling that those insurance policies did not cover flood damage regardless that the flooding was caused by the levee failures.
On February 26, the Louisiana Supreme Court will also hear arguments on the case. The defendants in those cases are Travelers Casualty Property Company of America and the Allstate Indemnity Company.
On a separate note, the CDC had said that the trailers provided to the Katrina victims by FEMA have been deemed toxic.