The San Diego City Council agreed to pay $3.925 million to nine La Jolla condominium owners whose homes were severely damaged by a massive sinkhole in March 2023, bringing the city’s total settlements in the case to just under $14 million.
In August, the city approved paying $10 million to settle the claims from the homeowners’ association and a tenth condo owner.
The final payout comes more than three years after a stormwater drainpipe failed near a condo complex located at 8803 Gilman.
Following the first sinkhole, as crews worked to repair the area, another drainpipe failure caused the ground to sink more, leaving a more than 80-by-40-foot hole steps from the La Jolla Terrace Condominiums.
The sinkhole caused several buildings to shift, cracking foundations, dislodging doors and windows and eventually forcing residents to evacuate.
In 2024, the homeowners association and seven condominium owners filed legal claims against the city of San Diego and the construction company that the city hired to replace the large drainpipe and reinforce the ground surrounding it.
The settlement now ends all litigation.
