Settlement reached in building collapse lawsuits

SIOUX FALLS, South Dakota (AP) – Insurers for the developer and construction company involved in the fatal collapse of a building in downtown Sioux Falls in 2016 will pay more than $4 million to settle lawsuits filed in the aftermath.

An agreement reached in the U.S. Bankruptcy Court and approved by a judge this week would end most of the litigation resulting from the collapse of the former Copper Lounge building.

The Dec. 2, 2016 collapse killed Ethan McMahon, an employee of Hultgren Construction, and trapped an upstairs resident of the building, Emily Fodness, in the rubble for hours.

The Argus Leader says the agreement ends lawsuits brought against Hultgren and Legacy Developments by the McMahon and Fodness families.

The insurance company for Hultgren Construction, which declared bankruptcy, will pay $2 million.

Another $1,150,000 will come from property insurance and $1 million will be paid by Legacy Developments’ insurance company.

Associated Press

Associated Press

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