Agreement provides close to $9M for Louisiana nursing home residents housed in a warehouse during the hurricane

NEW ORLEANS — Residents from seven nursing homes in Louisiana who were relocated to an unsuitable warehouse during Hurricane Ida’s impact in 2021 are now being proposed shares of a settlement amounting to nearly $9 million following a lawsuit.

Retired state judge William “Rusty” Knight announced that letters regarding the proposed settlement are being distributed to the 427 former residents who initiated legal claims. He explained that the compensation amounts will vary depending on each resident’s specific situation.

For those who accept the offered amount, payments are expected to be processed within a few weeks. However, a court hearing has been scheduled in January for claimants who wish to contest the settlement.

“Navigating this process has taken longer than we had hoped,” Knight stated. “Unfortunately, the funds available are not sufficient to adequately compensate everyone.”

Bob Dean Jr., a 70-year-old who previously owned seven nursing homes across New Orleans and southeastern Louisiana, relocated hundreds of residents to a facility in Independence as Hurricane Ida approached. This location is situated about 70 miles northwest of New Orleans.

Following the hurricane’s arrival on August 29, 2021, the conditions within the warehouse quickly deteriorated, according to authorities. Reports indicated that elderly and ailing residents were found lying on makeshift beds on damp flooring, with some in need of assistance and others unable to move due to their circumstances. Civil lawsuits against Dean’s company described conditions such as leaking ceilings, overflowing toilets, and a lack of adequate food and water.

In the aftermath of the storm, the state recorded seven deaths among the evacuees, with five classified as related to the storm. By June 2022, when Dean was arrested on various state charges, he had already lost both state licenses and federal funding for his nursing homes. In July, he entered a no-contest plea to 15 criminal charges, resulting in a three-year probation sentence and a restitution payment of $258,000, alongside a penalty exceeding $1 million.

Recently, Dean reached a settlement of $8.2 million with the federal government, addressing claims that he improperly utilized funds and assets from four nursing homes that were federally insured. Prosecutors alleged that he transferred funds from the nursing homes to his personal bank accounts, subsequently using that money for personal purchases including antiques, vehicles, and firearms.

Additionally, Dean faces civil lawsuits from 427 of the 843 patients relocated to Independence, as well as claims from some family members of the patients. Many of the plaintiffs’ legal representatives believe Dean may possess undisclosed assets.

“My clients’ suffering cannot be truly addressed with this settlement,” remarked attorney Matthew Hemmer, who represents numerous victims from the nursing homes, as reported by local media.

Knight also noted that he is aware of 165 former residents who have passed away since the evacuation occurred, and he anticipates that more deaths will be revealed as recipients respond to the settlement offers.