Two of the major
defendants in the lawsuit over the Surfside condominium
collapse — an engineering company hired to repair structural
problems and a law firm that represented the condo
association — have agreed to tentative settlements in the
tragedy that left 98 people dead.
Lawyers for the survivors and families of victims in the
lawsuit announced the breakthrough at a Wednesday status
hearing in the case. Miami-Dade Circuit Court Judge Michael
Hanzman, who is overseeing the complicated suit against
multiple defendants and deciding how to allot compensation
for the surviving condo owners and relatives of those who
died, applauded the deal though the terms were undisclosed.
“This is great news,” Hanzman said. “Looks like the lawyers
did an excellent job. We’ve settled two.”
Morabito Consulting, the Maryland-based engineering company
that performed a 2018 structural analysis of Champlain
Towers South and was supervising its restoration plan, and
Becker, the law firm that represented the condo association,
have agreed to pay an undisclosed sum and avoid a trial on
accusations of negligence in the June 24 disaster.
Miami attorneys Rachel Furst and Harley Tropin, leaders of
the team representing relatives suing for wrongful death,
said attorney Stuart Grossman, mediator Bruce Greer and
attorneys for the insurers of the two firms played a central
role in hammering out the agreement, which still must be
reviewed and approved by Hanzman.
“We are pleased that this matter was resolved with both
defendants,” Furst and Tropin said in a joint statement.
“This is an important step for compensating the victims and
we are grateful that it was completed at an early stage.“
Morabito denied that it was liable for the collapse of the
12-story, 136-unit building, saying in a statement its work
was “consistent with the highest industry standards.”
“But we also firmly believe that the families who have
suffered from this tragedy deserve compensation so that they
may focus on healing. We therefore applaud the settlement
reached by our insurers to resolve these difficult issues
fairly and expeditiously. We fully recognize that the losses
suffered can never be fully compensated, but it is our
sincere hope that this settlement helps to bring some
closure to an incredibly painful chapter for all involved.
” Morabito Consultants produced an inspection report in 2018
in preparation for Champlain South’s 40-year recertification
that found “abundant cracking and spalling” in concrete
columns and walls, “exposed, deteriorating rebar” and
failing waterproofing of the pool deck that was causing
“major structural damage.”
While Morabito did not warn that the building was unsafe, it
urged the condo association to make repairs in a “timely
fashion” because the concrete problems could “expand
exponentially.” The $9 million estimated cost of repairs
caused dissension among board members and owners and rose to
$15 million as the association delayed repairs, which had
commenced just before the partial collapse of the building.
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the immediate aftermath of the collapse, the company
defended its work: “Morabito Consultants provided the
Champlain Towers South Condominium Association with detailed
findings and recommendations nearly three years ago
regarding the structural repairs that were needed on the
building to ensure the safety of the residents and the
public,” a spokesman said.
Morabito’s insurers initially refused to provide potentially
tens of millions of dollars in coverage and sued Morabito,
arguing the deaths and property losses were caused by
Morabito’s “negligence.” In response, Morabito sued its
insurance companies, claiming it did provide proper
professional services.
Becker, formerly known as Becker and Poliakoff, has been the
leading force in influencing Florida’s condo living
regulations since the building boom years. Becker
represented the Champlain Towers South condo association for
three decades.
In the lawsuit, victims accused the firm of “callous,
reckless, and conscious disregard” for the safety of
residents and claimed that Becker “had knowledge of
complaints from residents regarding the building’s condition
for years before the collapse.”
The Fort Lauderdale-based law firm, which helped write much
of Florida’s condo legislation empowering associations, “had
a responsibility and duty to warn about the imminent nature
of the damage and the extreme risk to the residents and
occupants of CTS posed by the structural damage” discovered
by Morabito, but failed to take action, according to the
lawsuit.
“Our deepest sympathy goes out to those affected by the
tragic collapse of Champlain Towers South,” the firm said in
a statement. “Becker mourns those who have been lost, many
of whom were friends. We are pleased that this matter is
coming to a close and that our insurance carriers decided to
resolve the case in a manner that we hope will help bring
closure to the victims and their families of this terrible
tragedy. We are in the process of finalizing the settlement
details, which is expected to take several weeks.”
Last week, surviving Champlain South owners were offered an
$83 million settlement to compensate them for their losses.
Several told the Miami Herald they were angry with an offer
they considered far too low. The settlements with Morabito
and Becker may or may not affect that amount as Hanzman
weighs the details of the agreements. It was not immediately
clear if the amount of the two settlements announced
Wednesday would eventually be made public in the contentious
negotiations.