Tentative Deal Has $83M for Economic Losses in Condo Collapse

A tentative deal announced Friday would pay $83 million to people who suffered economic losses such as condominium units and personal property in the collapse of a Florida building that killed 98 people. The emerging agreement, yet to be formally reduced to writing, would set aside whatever amount above the property settlement figure for those who lost loved ones in the collapse of the 12-story Champlain Towers South condominium in Surfside, Florida. The proposal was unveiled at a hearing Friday before Miami-Dade Circuit Judge Michael Hanzman, the AP reports, who is presiding over lawsuits stemming from the June 24 collapse.

Any deal would need the approval of Hanzman, who said he'll hear any objections before deciding. "There's a strong possibility we're going to avoid any drawn-out legal battle," he said. A written agreement will be ready to file in court by next Thursday, said attorneys involved in the negotiations overseen by a mediator. The main lawsuit, filed on behalf of Champlain Towers South victims and family members, contends that work on the adjacent Eighty Seven Park tower damaged and destabilized a building in dire need of major structural repair. Champlain Towers was undergoing a 40-year structural review when it collapsed without warning.

Multiple federal and state investigations have followed, along with a flurry of lawsuits by victims, families, and condo owners. A key question from the beginning was how to allocate money from the property's sale, insurance proceeds, and damages from lawsuits between wrongful death cases and those with only property claims. Gonzalo Dorta, who represents the property owners group, said the agreement means those who accept part of the $83 million will be finished with the case and won't be subjected to a possible assessment that state law allows for condo associations to cover legal and other costs. The lawsuit claiming damages for wrongful death still will move forward, with collections possibly amounting to $120 million from the property sale and perhaps $30 million in insurance proceeds.

(More Florida condo collapse stories.)