Council approves settlement related to 2016 Rideau St. sinkhole

Water can be seen in a large sinkhole that formed on Rideau Street next to the Rideau Centre mall is seen on Wednesday, June 8, 2016 in Ottawa. THE CANADIAN PRESS/Justin Tang

City councillors have approved a settlement with insurers over the June 2016 sinkhole that swallowed a van on Rideau Street and led to delays in Stage 1 LRT construction.

Council approved the settlement during an in-camera meeting closed to the public Wednesday under the “Builders Risk Insurance Police No. 14601” in which the city would recover some of the costs associated with the sinkhole.

The terms of the settlement remain confidential, as they “relate to litigation and are protected by solicitor-client privilege.”

On June 8, 2016, a massive sinkhole formed on Rideau Street just east of Sussex Drive. No one was injured but a van parked on the street fell inside as it expanded. The hole was blamed as one of the primary reasons for delays in construction of the Confederation Line.

The city launched a $361 million lawsuit against insurers in 2021, though it’s unclear if this settlement is related.

The city of Ottawa also launched a $131-million lawsuit against the Rideau Transit Group, the LRT builder, in May 2021 over the numerous delays and deficiencies along the Confederation Line, while RTG countersued for $225 million.

The city said there was an agreement between the city and RTG to settle the lawsuit, but the specifics of the settlement were not released.

With files from CTV News Ottawa’s Josh Pringle

• Sign up now for daily CTV News Ottawa newsletters
• The information you need to know, sent directly to you: Download the CTV News App