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Late last week, attorneys representing the parties involved in toxic FEMA trailer litigation came to an agreement to settle a small portion of the toxic trailer claims.

The vast majority of units used by FEMA to house those displaced by Hurricanes Katrina and Rita were travel trailers. A much smaller percentage of units were mobile homes or manufactured housing units. The settlement involves only the manufactured or mobile home units.

The agreement calls for mobile home manufactures named in the case to pay $2.6 million dollars to resolve mobile home claims. The agreement will apply to claims involving manufactured housing units; however, claims involving travel trailer units remain unsettled.

The settlement comes as welcome news for the thousands of individuals who were exposed to potentially toxic formaldehyde fumes while living in temporary housing following Hurricanes Katrina and Rita.

Although the settlement only applies to a relatively small portion of the claims, it could lay the groundwork for a much larger future settlement.

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