Hurricane Isaac sidestepped New Orleans, sending the worst of its howling wind and heavy rain into a cluster of rural fishing villages with few defences against the slow-moving storm that could bring days of unending rain.

Tropical Storm Isaac continued to lash New Orleans with heavy rain today despite being downgraded, as residents in cars and homes were stranded exactly seven years after Hurricane Katrina devastated the city.

A judge has ruled that negligence by US Army engineers led to massive flooding in New Orleans during Hurricane Katrina in a move which could lead to a massive Government payout to claimants.