Decades of outstanding money judgments owed by the city of New Orleans are on the brink of being settled. The New Orleans City Council recently made a significant decision to initiate payments towards a range of legal judgments, which include incidents involving police vehicles and disagreements over city contracts. The city had amassed a substantial amount of over $30 million in unpaid judgments dating back to the 1990s. This accumulation of debt had been put on hold for an indefinite period due to a provision in the state constitution.
Following the council’s decision, the city is now required to promptly start settling the oldest judgments, stretching from the late 1990s through 2006. The remaining outstanding judgments are scheduled to be fully paid off by 2027. During a recent meeting, attorney Shannon Holtzman expressed relief at the prospect of finally closing the file on this longstanding issue. Holtzman was representing George White, who has spent 21 years fighting to recover over $1 million owed to his consulting firm.
Moving forward, the city is obligated to send written payment offers to all parties with unresolved judgments. However, it is important to note that these offers will only cover the original amounts due, without any additional interest accruing. The new ordinance, led by council member Joe Giarrusso, marks a crucial step towards resolving the substantial backlog of unpaid judgments that had lingered for decades in New Orleans.