Judge approves $12.25 million Hilco settlement over botched Little Village demolition

CHICAGO (CBS) -- A federal judge has signed off on a $12.25 million settlement agreement in a class action lawsuit filed over the botched demolition of a coal power plant smokestack in the Little Village neighborhood in 2020.

The settlement will cover property damage and personal injury claims filed against Hilco after it commissioned the implosion of the smokestack at the shuttered Crawford power plant at 35th and Kedzie on April 11, 2020, coating the surrounding Little Village neighborhood in a massive cloud of dust and debris.

The implosion led to additional health concerns in the midst of the COVID-19 pandemic, as many in the neighborhood reported problems breathing afterward.

The implosion and its aftermath also sparked allegations of both government mismanagement and racism - over why it was allowed to happen in a largely working-class, Mexican American community.

While Hilco and its contractors continue to deny any wrongdoing in the demolition, they have agreed to pay damages to bring the class-action lawsuit filed against them to a close.

The settlement will cover people who own property or were present within a large segment of Little Village on the day of the demolition. The following boundaries define the affected area: from 33rd Street and Kedzie Avenue, west to 33rd Street and Kilbourn Avenue, north to Kilbourn Avenue and Cermak Road, east to Cermak Road and Ogden Avenue, northeast to Ogden Avenue and California Avenue, south to 26th Street and California Avenue, west to 26th Street and Sacramento Avenue, south to Sacramento Avenue and 31st Street, west to 31st Street and Kedzie Avenue, south to 33rd Street and Kedzie Avenue.

A total of $1 million from the settlement will go to anyone who owned or leased a home or business within that area that was damaged by the dust and debris cloud following the explosion.

Another $7 million will go to anyone who was in the designated area on the day of the demolition.

According to court documents, more than 21,000 personal injury claims have been deemed to be valid, and each person will get approximately $317 in damages.

Three named plaintiffs in the case also will get $5,000 each as an incentive reward.

It was not immediately clear how many property owners would be eligible for a share of the $1 million in total property damages.

The remaining $4.25 million from the settlement will go to attorneys' fees and other court costs.

The settlement comes after Marlene Hopkins, who oversaw the botched demolition of the smokestack, was confirmed as commissioner of the Chicago Department of Buildings last week, despite her role in the scandal.

The Chicago Inspector General's office found Hopkins – who was the department's managing deputy commissioner at the time – and other top city officials to be negligent in their handling of the demolition, and that she sought to minimize her role in the process. The inspector general's office recommended Hopkins be disciplined, but she faced no punishment.