A federal judge issued a stinging blow to the Army Corps of Engineers Wednesday for its role in mismanaging the Mississippi River Gulf Outlet (MRGO), which subsequently caused millions of dollars in flood damage during Hurricane Katrina. The decision—the first to hold a federal agency liable for Katrina damage—could have far-reaching implications as others in the affected area file suit.

Homeowners along the 76-mile shipping channel claimed Army Corps negligence “destroyed protective wetlands and turned the shipping channel into a speedway for storm surge that flooded thousands of homes during the 2005 hurricane,” according to a March article in the Times-Picayune. Although both sides requested summary judgment at that time, the case was set for trial. Federal District Court Judge Stanwood R. Duval, Jr. issued his ruling late Wednesday.

“It is the court’s opinion that the negligence of the corps, in this instance by failing to maintain the MRGO properly, was not policy, but insouciance, myopia and shortsightedness,” Duval wrote in the ruling, according to the New York Times. “The corps had an opportunity to take a myriad of actions to alleviate this deterioration or rehabilitate this deterioration and failed to do so. Clearly the expression ‘talk is cheap’ applies here.”

That talk could become a lot more expensive thanks ruling encourages others to file suit. Although the Times-Picayune reports the four plaintiffs in the case will receive a little more than $700,000 total, an Army fiscal report estimated damages could be as much as $500 billion in future claims, according to the New York Times. Approximately 80,000 people live in the affected area, which includes St. Bernard Parish and the Lower Ninth Ward, the New York Times article stated.

Duval ruled that a law protecting the government from lawsuits for the failure of flood control measures did not apply to the MRGO, a navigation channel. He also rejected Army Corps arguments that maintenance decisions were “discretionary policy judgments of … professional staff and thus protected under federal law,” according to the Times-Picayune.

"Ignoring safety and poor engineering are not policy, and clearly the Corps engaged in such activities," Duval is quoted as saying.

The Army Corps will appeal the ruling, according to the New York Times.

“All of these claims are currently the subject of litigation before the Federal District Court in New Orleans,” Corps spokesman Ken Holder said in a statement. “Until such time as the litigation is completed, including the appellate process up to and through the U.S. Supreme Court, no activity is expected to be taken on any of these claims.”

Meanwhile, the plaintiffs’ lawyers plan to travel to Washington to request the Obama administration grant a universal settlement that would cover all those affected by the MRGO flooding, according to the Los Angeles Times.

"We're hoping the new administration and the new Congress will view this decision in a new light," litigator Pierce O'Donnell told the Times-Picayune. "This decision should act as a catalyst to finally work out a settlement for all the people of New Orleans."