New Orleans is finally paying millions of dollars in decades-old legal judgments

NEW ORLEANS (AP) — Decades of unpaid money judgments owed by the city of New Orleans may finally be paid soon.

New Orleans City Council on Thursday voted to make payments on a variety of legal judgments including wrecks that involved police cars and disputes over city contracts, The Times-Picayune/The New Orleans Advocate reported.

The city had built up tens of millions of unpaid judgments dating back to the 1990s, allowed to put off such payments indefinitely by a provision in the state constitution.

Now, after Thursday’s action, the city must almost immediately start paying out the oldest judgments — dating from the late 1990s until 2006. The remaining judgments are to be paid by 2027.

The city’s unpaid judgments amount to more than $30 million, according to an estimate provided by staff for council member Joe Giarrusso, the lead author of the new ordinance.

“It’s time for me to close this file,” attorney Shannon Holtzman said during the meeting.

Holtzman represented George White, who has battled for 21 years to recover more than $1 million owed to his consulting firm.

The city now must send written offers of payment to anyone with an outstanding judgment. There’s still a catch: The offers cover payment only for the original judgment amounts — without interest.