2026 CASE UPDATES

January 16, 2026

DOWNSTREAM – Case Update

We write to report a development in the case:
On January 15, 2026, the Court called a status conference with the Downstream litigation team and the government attorneys. We attended.

Judge Smith started the conference by citing the recent ruling from the Upstream case (Ablan v. U.S., No. 2023-1363), where the Court of Appeals for the Federal Circuit largely affirmed the Upstream ruling, favorable to the Upstream Plaintiffs/homeowners. Since this decision came from a higher court and also involved the federal government (the Army Corps), that decision has precedential value over the Downstream case as well.

Judge Smith suggested that the parties meet over and discuss the possibility of settlement. Judge Smith also advised that, while he has not issued a ruling yet, he is currently leaning toward the Plaintiffs’ side.

The Downstream litigation team advised that we are amenable of settlement negotiation and welcome the opportunity. The government’s representative attorney, however rejected the idea and stated that the government is not interested in negotiations, despite the Judge’s suggestion (Judge Smith offered it twice during the conference.

Judge Smith stated that, in that case, he will proceed accordingly.
With that, we will await the Court to issue a ruling in the meantime. Although, we encouraged by the Court’s comment during the conference. We shall see how the Court rules.

As always, please do not hesitate to contact us with any questions or comments.