Late Wednesday, a class action lawsuit against the U.S. Army Corps of Engineers was dismissed by U.S. District Judge Stanwood R. Duval, Jr.  The suit, consolidating 350,000 claims by  businesses, government entities and residents, sought relief for damages resulting from the failure of New Orleans canals after Hurricane Katrina made landfall.

Judge Duval ruled that the 17th Street, London and Orleans Avenue outfall canals were federal flood control projects and therefore statutorily immune from suit under the Flood Control Act of 1928.  Joseph M. Bruno, who along with other counsel filed consolidated class action lawsuits, said today he intends to appeal the decision to the United States Court of Appeals for the Fifth Circuit. (Bayou Buzz

Separately, the Corps of Engineers has proposed voluntary buyouts in the New Orleans area, including “the southernmost parts of Slidell, Mandeville and Lacombe on the north shore; Delacroix and Reggio in St. Bernard Parish; Ruddock in St. John the Baptist Parish; Lafitte and Barataria in Jefferson Parish; and a number of communities on both sides of the river in Plaquemines Parish,” as well as Madisonville [ MAP] (From the Times Picayune).