Agreement would settle Elliot Lake, Ont., mall collapse lawsuit for $10M

An April 10 hearing will decide if court accepts $10 million settlement for 2012 Algo Centre mall collapse in Elliot Lake where two women died.

Almost 15 years after the Algo Centre Mall in Elliot Lake, Ont., collapsed, killing two women, the sides involved in a class action lawsuit have a proposed settlement agreement to settle outstanding claims for $10 million.

The upper parking structure of the mall collapsed on June 23, 2012, as a result of decades of water and salt infiltration.

Two women died and several others were hurt as a result. It emerged during an inquiry that the roof was declared structurally sound by a disgraced engineer just weeks before the tragedy.

The class action suit, originally for $30 million, was certified in 2014 and has been ongoing ever since.

On March 2, Roy O’Connor LLP said the proposed settlement had been reached and would go before a hearing April 10 for a decision.

$2.5M in legal fees

Of the $10 million, $2.5 million would go to the legal team representing the more than 300 plaintiffs taking part in the suit. In addition, an estimated $700,000 would be deducted “to pay all such administrative expenses, including the time, costs and expenses of the adjudicator, the appeal officer and the settlement administrator.”

The adjudicator would be responsible for evaluating and valuing the damages for each claimant in the suit and how much each would receive.

Details of the types of claimants taking part in the suit and how their claims will be evaluated are available here.

“The plaintiffs and class counsel recommend the $10 million settlement as a reasonable compromise at this time based on the potential damages identified by class members over many years of litigation,” the lawyers said in a news release March 2.

“If the $10 million settlement is not approved by the court, the parties will return to litigating the case for what is likely to be years. The outcome of continuing to fight this case is unknown and there is no guarantee that any potential damages recovered would total in excess of $10 million.”

If the settlement is approved, the court will then review the proposed method of distributing the available funds to the claimants.

“The court can approve or not approve that distribution plan at the April 10 hearing,” the release said.

“If it is not approved and if modifications to the plan are not accepted at the hearing itself, another distribution plan will need to be designed and put before the court to determine if it is fair, reasonable and in the best interests of the (claimants).”

There are three groups slated to receive compensation from the settlement: people who suffered physical or psychological injuries; people who suffered a loss of employment income or wages (people who worked at the mall); and, businesses in the mall that were damaged a result of the class.

The settlement hearing begins at 10 a.m. on April 10 and can be accessed via Zoom. To get a link to the hearing, and for more information about the settlement, click here.