Redondo Faces Disaster Claims of $35 Million

More than 65 people and businesses have filed claims totaling at least $35 million against the city of Redondo Beach for injuries and property damage suffered during four disasters at King Harbor and the collapse of ventilation gratings in a city-owned parking garage, City Manager Tim Casey said last week.

Portofino Partners--which operates the 139-room Portofino Inn, as well as an apartment building, a restaurant and a 232-slip marina on property leased from the city--filed a $20-million claim last week for property damage and business interruption losses suffered in a severe January storm.

Portofino Partners claims that the city is responsible for the damage because of “breach of contract, breach of lease and the failure . . . to prevent damage to property at or near the coastline including . . . the failure to construct and maintain an adequate seawall and/or breakwater. . . . “

Portofino’s insurance companies also filed a claim for an unspecified amount.

Under state law, a person or business wishing to sue a city must first file a claim within six months of the damage or injury. Monday was the deadline for claims for damages suffered in the Jan. 17 and 18 storm.

Claims stemming from the storm amount to about $25 million--although city officials say the storm caused only about $17 million in damage to the harbor--and include:

$2.5 million for the Blue Moon Saloon, which was destroyed.

$2 million for Reuben’s restaurant, which was destroyed.

$30,000 for storm damage to Breakers Seafood Co., which survived the storm but was later destroyed by fire.

$15,500 to El Torito restaurant, which was not physically damaged but lost utility lines and business while the pier was closed for several days.

$189,000 for 12 businesses on the International Boardwalk next to the pier.

$125,000 for injuries to six customers of the Blue Moon Saloon.

$24,306 for the loss of a Torrance resident’s boats.

$700 for a scale that belonged to the King Harbor Marlin Club.

$7,785 for city Harbor Director Sheila Schoettger’s car, which was damaged while parked in a harbor lot during the storm.

About $2,200 for towing fees for more than 30 vehicles removed at the city’s direction from harbor parking lots.

An unspecified amount for damage to the Redondo Beach Marina, which includes the 250-foot Sportfishing Pier, 58 boat slips, 100 moorings, boat hoists and the Blue Moon Saloon, which subleases the building from Redondo Beach Marina.

The harbor businesses, including those on the Redondo Beach Pier, lease the city-owned property but either own their buildings or lease them from individuals or businesses. Most claim that the city is responsible for the damage because it failed to properly construct and maintain the harbor and its protective breakwater, rock revetments and seawalls.

City Manager Casey said: “Certainly, the city doesn’t believe it has any liability.” The allegations on the claims, he said, are “platitudes that you would expect clever attorneys to come up with when they’re filling out these forms.”

The City Council agreed to pay the towing fees, which amounted to $60 each for most cars. The other claims have been or will be rejected, said Judy Durham, who process claims for the city. The businesses or individuals have six months from the date of rejection to file a lawsuit, she said.

The only person to file a lawsuit so far, said City Atty. Gordon Phillips, has been John Modugno, who claimed that police officers prevented him from moving his 22-foot cabin cruiser and two smaller boats to a safer place in the harbor during the storm. He also claims that the city failed to improve the King Harbor breakwater and docks.

Most of the remaining $10 million in claims stems from a city parking garage accident in which one man was killed and eight people were injured when the steel ventilation gratings on which they were standing collapsed. Claims stemming from that incident may be filed until Aug. 1.

On April 30, wind-swept waves caused $1.25 million in damage to the pier and demolished a popular 155-foot fishing promenade.

A fire ravaged the pier on May 29, destroying 15 businesses, about 34,000 square feet of the wooden and concrete pier and causing an additional $7 million in damage.

Two days later, wind-swept waves again battered the pier, causing another $1.25 million in damage.