Miami Collapse: Justice Approved First Agreement for $83 Million

The owners (or heirs) of the 136 units missing after the collapse of the South Champlain Tower in Surfside, Miami Dade County, will receive $83 million in compensation for the loss of properties, a judge in the city of Miami found.

After hours of hearing arguments for and against the agreement, Judge Michael Hanzman ratified the agreement reached during the mediation instance, where the amount by which the owners would be compensated was determined. Depending on the size of the property, the money will be divided between the parties, although Real Estate experts consider that whatever total amount they get will always be below the market value of those apartments.

Of the 83 million dollars, 30 will come from insurance companies and 53 million will come from the sale of the now empty oceanfront lot, where the collapsed tower used to be.

Unless they refuse to receive their share, the owners of the 136 units that enter into the agreement will relinquish their right to independently sue for material losses. Another is the case of the pending lawsuits for the death of the 98 people who were left in the rubble of the building, and the physical and psychological damage of the survivors.

“This gives them some kind of certainty. These people need certainties in order to move forward. Maybe it's not about 100 percent of the value, but it's very close to it. I think this is a great result,” said Judge Hanzman when approving the agreement.

As is known, the south Champlain tower collapsed in the early morning of June 24, 2021, causing the death of 98 people. The remaining part of the tower was demolished days later because the structure was unsafe.

Although at the moment there is no certain reason why the collapse was, everything indicates that failures in the construction of the 12-storey building 40 years ago, coupled with poor maintenance of it, led to the collapse. But there are also those who argue that the construction of a luxury tower, known as Eighty Seven Park, a few meters from the Champlain South Tower, damaged the foundations of the collapsed tower, triggering the tragedy. While the advocates of Eighty Seven Park deny that this happened, there is a lawsuit in court about it and it is from that lawsuit that the 83 million dollar settlement follows.

One of the criticisms of the agreement that was most heard during the hearing was that this first agreement only benefits property owners. Many of the victims were not owners, so their heirs will not receive anything from this agreement. The judge explained that while he understands that nothing compares to human loss, this particular agreement was not about that type of loss, but with material damage.

The now empty ground in Surfside will go to auction in the coming weeks, with a base value of $120 million, resulting from an offer that has been on the table for months.

Meanwhile, Surfside authorities are still deciding what the memorial for the victims will look like, which is likely to be located on part of the land that is for sale.

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