The catastrophic failure displaced residents and left the property in limbo, with condos still boarded up and fenced off.
SAN DIEGO — The City of San Diego is set to pay $10 million to the La Jolla Terrace condo complex and one condo owner to settle part of a lawsuit stemming from a massive sinkhole caused by a failed city stormwater pipe over three years ago. The catastrophic failure displaced residents and left the property in limbo, with condos still boarded up and fenced off.
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“It was the worst thing that’s ever happened to me honestly,” one man who lived in the building and is suing the City of San Diego told CBS 8.
The sinkhole that opened in March 2023 following a series of storms initially began with a damaged stormwater pipe. As crews attempted to repair the damage, another pipe failed, exacerbating the situation and creating a sinkhole more than 80 feet long and 40 feet wide. The ground shifted, resulting in cracked foundations and moving buildings.
Residents were forced to vacate their homes, with the city relocating some to a nearby Residence Inn. Now, more than three years later, many are still unable to return. In 2024, the homeowners association and seven condo owners filed claims against the city and the contractor responsible for the repairs.
The $10 million settlement will only address claims from the homeowners association and one condo owner; other owners and some renters continue to pursue legal action, hoping to recover costs for extensive damages. Pete Fraley, a neighbor, expressed concerns about the settlement’s adequacy.
“That’s not going to cut it; it’s not enough, because they’re gonna have to rebuild two buildings here and it’s just gonna be a mess,” Fraley said.
Fraley and others still face the reality that they are responsible for personal property losses, such as cabinetry and fixtures, and still need significant financial restitution. The city council is expected to give final approval to the settlement tomorrow.