City pays damages and upgrades for Rodeo Drive sinkhole

The City of Los Angeles recently reached a settlement with Stutman Law’s client for more than $600,000 to cover damages to a commercial property on Rodeo Drive caused by a sinkhole. The problem began when leakage from a sewer main, owned and operated by the City, caused a large sinkhole directly beneath a commercial property located on the famous Rodeo Drive. Portions of the property, and its contents, fell directly into the sinkhole.

Aggressive investigation showed that the City not only had prior knowledge of the leak, but had planned to do the repairs six months prior to the loss but never got the project started. Stutman Law attorneys scheduled settlement negotiations, and after a lengthy mediation process in which Stutman Law insisted that the City pay more than $100,000 for required building code upgrades and repairs, a settlement was reached for more than 90% of the total insurance claim.

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