Proposed $10 million settlement reached in Algo Centre Mall collapse class action suit

Almost 14 years after the tragic collapse of the Algo Centre Mall in Elliot Lake, a proposed $10 million settlement has been reached in a class action lawsuit. The settlement, which requires approval from the Ontario Superior Court of Justice with a hearing scheduled for April 10th, is considered “fair and reasonable” by lawyer David O’Connor representing the claimants. The collapse, which occurred on June 23, 2012, resulted in the deaths of two women and injuries to over 20 others, and was attributed to structural failure caused by years of neglect and corrosion.

The settlement will be shared among approximately 225-250 class action claimants and around 50 insurance companies. The families of the deceased and the Elliot Lake Foodland store opted out of the class action and pursued separate legal actions. The proposed agreement comes after over a decade of litigation, mediation, and was impacted by factors such as COVID-19 and changes in judicial assignments.

The law firms involved are seeking 25% of the settlement ($2.5 million) for their work, a common contingency arrangement. A third-party adjudicator will assess individual claims and distribute funds proportionally, with a focus on minimizing administrative costs to maximize payouts to claimants. The case is unique due to the combination of loss of life, injuries, and business losses resulting from the mall collapse, and the original claim sought $30 million in damages.

(Source：The North Bay Nugget)