A federal judge has given the green light to a hefty $12.25 million settlement for the Little Village neighborhood fiasco. The settlement aims to resolve a class action lawsuit stemming from the botched demolition of a coal plant's smokestack back in 2020, which resulted in a colossal dust cloud descending on the surrounding area. The Chicago Sun-Times reported the approval, which will compensate thousands of residents for property damage and personal injury claims against Hilco Redevelopment and its subcontractors.
The incident occurred when Hilco was in charge of bringing down an almost 400-foot smokestack at the former Crawford power plant and failed to contain a massive dust cloud. The fallout from the implosion has left long-lasting health effects on residents, with one local, Elizabeth Rodriguez, detailing to the Chicago Sun-Times, how her husband still struggles with breathing issues, four years after the event. However, due to the fine print of the settlement, Rodriguez has been excluded, as she was just outside the established boundaries for payment eligibility.
Legal drama has ensnared city officials in the wake of the debacle, with the former inspector general accusing them of "negligence" and "incompetence." The report by Joe Ferguson called out specific higher-ups in the city for failing to protect public health, according to details acquired by the Sun-Times. Among those named for recommended discipline were David Graham, a public health official, and Marlene Hopkins, recently confirmed as the city's new commissioner for the Department of Buildings – despite criticism of their handling of the power plant's demolition.
The settlement funds will be divided among the residents, with a total of $1 million set aside for property damage and $7 million allocated for personal injury claims. In a statement obtained by CBS Chicago, attorney Scott Rausher emphasized that the settlement sends a message of accountability to those who cause harm in the city. Identifying an additional $4.25 million for attorneys' fees and other court-related expenses, the package is expected to address claims for over 21,000 residents, though some community members have expressed that the per-person payout of roughly $317 is inadequate.
Edith Tovar, from the Little Village Environmental Justice Organization, described the settlement as "bittersweet," recognizing it as a step toward accountability but still falling short of addressing long-term effects on residents. These sentiments echo the broader community's frustration over what they see as a paltry sum in the face of long-lasting health and property damage, a perspective shared in a CBS Chicago interview with local resident Irma Morales who called the payment "a joke." Despite the payout, the wound to the community's trust and health remains a salient reminder of the incident's enduring impact. Hilco officials have declined to comment on the settlement.
