You will notice that even though the city was insured for these kind of problems, they still had to be taken to court to get the money. Pretty pathetic if you ask me.

For immediate release:

SEWER SYSTEM CLASS ACTION AGAINST CITY OF

SIOUX FALLS SETTLED BY THE PARTIES

The law firms of JOHNSON HEIDEPRIEM & ABDALLAH LLP and HUGHES LAW OFFICE are pleased to announce a settlement in Arneson v. City of Sioux Falls, Civ. No. 05-1713.

In 2007, the Circuit Court in Minnehaha County certified a class action comprised of property owners in Sioux Falls who suffered damage to their homes and businesses in 2004 as the result of the City’s inadequate storm sewer system. Following a notification procedure, 159 class member residents who suffered such damages completed the necessary forms to request inclusion in the class, executed affidavits, and provided documentation detailing their damages suffered in these devastating events.

Attorneys Steve Johnson, John Hughes, Pamela Bollweg, Ron Parsons and Jonathan Krueger have been working with a group of committed class representatives since that time to try to hold the City accountable.

These representatives are pleased to announce that an agreement has been reached with the City and its insurers to settle the certified claims brought against the City.

The settlement creates a fund of $1.95 million dollars that will provide partial reimbursement to the 159 class members that executed inclusion affidavits during the notification process on a pro rata basis.

“In 2004, a group of committed citizens came to me following this disaster,” said Attorney John Hughes. “They wanted accountability and they wanted justice. This settlement represents the fruits of all of their effort and hard work.” These claims are covered by the City’s insurance policies purchased for this type of event and no taxpayer dollars are involved in the settlement.

The settlement, which must be approved by the Court, will be overseen by a consulting firm that specializes in class administration. Should the court approve the final settlement, class members that have previously executed affidavits should expect to receive partial compensation some time this fall.

“This settlement represents a fair compromise, given the complexities involved in the case,” said Attorney Steve Johnson.

“We are pleased that these innocent property owners will finally receive reimbursement for the damages they incurred.”

8 Thoughts on “BREAKING: City finally held accountable for sewer backups in 2004

  1. “these claims are covered by the City’s insurance policies purchased for this type of event and no taxpayer dollars are involved in the settlement.”

    Really? Who paid the premiums for these policies? Taxpayers, of course. And as we all know, when you file a claim and your insurance pays out big, what happens to future premiums? They go up! This attorney made a stupid statement. We, the taxpayers, are the City!

  2. The city is self insured. Their premium is at least equal to what they pay out. The insurance pool kicks in at $10 million, but the city contributes to that with tax dollars.

    So yes, that was a really stupid statement, but he is a Huether hire, so what did you expect?

  3. l3wis on June 29, 2011 at 8:45 pm said:

    Pam – You are correct. And I am sure the money spent by the City’s attorney’s office came directly from us taxpayers. BUT, I am on the citizen’s side on this one. I have known about this lawsuit since it’s inception in 2007, and have watched quietly. I know two people personally affected by this. And you have to remember, it wasn’t just two people affected, it was 139 (willing to sue) When this event happened, most of these people were cleaning up from it, when the second hit. Damages ranged between $8,000 and $20,000. It was clearly the city’s fault. While we were having record sales tax growth, that we COULD HAVE used on infrastructure repairs, Munson and his rubberstamp council was buying zoos and bunny hills. On top of that, the citizens affected pointed out to the city that it would be covered by their insurance, and what did the city do to help. They picked up your sewer garbage (if you put it on the curb for them) for free and offered low interest community development loans. Bullshit. I’m glad they lost. Dumbfucks should have just gave them the money 7 years ago.

  4. l3wis on June 30, 2011 at 8:14 am said:

    This quote is the best:

    The city treats its water system as separate businesses, and they should be treated no differently than a private contractor would be if liable for shoddy work, he said.

    “When you pay the monthly fee for decades, you expect the system to work,” Johnson said.

    http://www.argusleader.com/article/20110630/NEWS/106300304/-1-95M-settles-lawsuit-over-2004-sewer-backups?odyssey=tab|topnews|text|Home

  5. Pathloss on June 30, 2011 at 9:28 am said:

    City uses private law firms for these cases. They’re fighting a handful of cases at the moment. They’re using taxpayer money for private lawyers and may also have to pay lawyers for the other side. Where is the millions coming from? Rather than obstruct and stall, they should have negotiated a settlement several years ago. It’s what happens when they’re spending our money and not theirs. Keep in mind that city civil procedures are considered unconstitutional by the courts. Most suits in progress will be won and new ones will be filed now. Bye Bye Events Center.

  6. Matthew on June 30, 2011 at 2:54 pm said:

    One day you’re complaining about the rising costs of water and sewer which is necessary to fund infrastructure repairs and enhancements, the next day you’re complaining about the city not doing enough to keep up with infrastructure repairs.

    You should run for political office. You already have the concept of talking out of both sides of your mouth perfected.

  7. l3wis on June 30, 2011 at 3:23 pm said:

    “rising costs of water and sewer which is necessary to fund infrastructure repairs and enhancements”

    I was waiting for this comment to appear. Water rates do not have to go up to pay for infrastructure costs, we can take that money out of the CIP like we have always done in the past, instead of heated floors for Rhinos, why not spend the 2nd penny on it’s true intentions? Infrastructure and Parks. As for the stabilization funds that the utilities want to build up, also unneeded. The city has a hefty reserve fund, those reserves are for emergencies like sewer backups and fixing pipes. I just don’t understand how you can be okay with double digit increases when we already have the money to fix the pipes. Just do it already.

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