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.

More stragglers seemed willing to flee the filthy water and stench of death as increasingly insistent rescuers made what may be their last peaceful pass through swamped New Orleans before using force.

As dawn broke over the ravaged Gulf of Mexico coastline today, rescuers in boats and helicopters furiously searched for survivors of Hurricane Katrina, with fears the death toll could reach 80.