Documents detail who will fund $10M Algo Mall lawsuit settlement

Details have emerged on who will pay the $10 million settlement from the 2014 class action over the fatal Algo Mall roof collapse in Elliot Lake.

The City of Elliot Lake will pay the largest share of a proposed $10.775 million settlement of a class action lawsuit related to the collapse of a roof at Algo Centre Mall in 2012.

Two women were killed when the roof of the parking garage collapsed on June 23, 2012, as a result of decades of water and salt infiltration.

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.

Earlier this month, lawyers for the claimants announced a $10 million settlement had been reached, in addition to more than $700,000 for expenses. Roy O’Connor LLP said the proposed settlement would go before a hearing April 10 for a decision on whether to settle.

More than 300 plaintiffs

Of the $10 million, $2.5 million would go to the legal team representing the more than 300 plaintiffs taking part in the suit.

Elliot Lake would provide $3.5 million, while $2 million would come from Algoma Central Properties, $1,745,000 from Eastwood Mall Inc., $1 million from NorDev Group, $730,000 from M.R. Wright & Associates Co. Ltd., $400,000 from the Province of Ontario, $225,000 from Coreslab Structures (Ont) Inc., and $100,000 from James Keywan.

April 10 hearing

All parties are named as defendants in the lawsuit. While agreeing to pay the settlement, none are admitting to having done anything wrong.

A judge will review the proposed settlement at a hearing April 10, as well as the plan on how to distribute the money to 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. and can be accessed via Zoom. To get a link to the hearing, and for more information about the settlement, click here.