“FEMA’s legal bill for the [National Flood Insurance Program] litigation arising solely from Hurricane Sandy will be like nothing else FEMA has ever experienced,” Nielsen said, predicting that the fees collected by him and other lawyers could hit $100 million.

EVEN Craig Fugate, FEMA Administrator, had issues with this.

Fugate said, “I have concerns” about the strategies being deployed by defense attorneys working on behalf of FEMA, though he said it’s unclear whether any wrongdoing has occurred, like fraud.

He added that the tactics seem to run counter to the program’s intent, if not the law, by aggressively opposing homeowners’ claims rather than negotiating a swift settlement.

“But we should not be just litigating as a delaying tactic to not pay claims,” Fugate said.



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