The city of San Diego is paying $10 million to settle a lawsuit from a La Jolla homeowners association and an owner of a condominium over a giant sinkhole that formed outside the complex from a failed stormwater pipe.
The $10 million payout comes more than three years after a sinkhole formed at 8803 Gilman in March 2023, after a stormwater drainpipe failed during a series of storms. 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 just steps from the La Jolla Terrace Condominiums.
The sinkhole caused the ground near several buildings to move, resulting in large cracks in the foundation and causing entire condos to shift, and eventually forcing residents to leave.
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.
On Tuesday, Aug. 25, San Diego City Council is expected to give final approval on the $10 million payout to the homeowners association and to only one of the owners.
The lawsuit filed by the other condominium owners and some renters is not part of the settlement. Those cases are ongoing.
