Studio City : City Agrees to Pay $1.1 Million in Suit

The Los Angeles City Council voted Wednesday to pay a group of Studio City homeowners $1.1 million to settle a lawsuit stemming from damage to the homes during a landslide caused by heavy rains in March, 1993.

The $1.1 million is part of an overall $1.9 million settlement package that will be paid by the city and the residents’ insurance companies.

In the 1993 landslide, a house at 11258 Laurie Drive slid off its foundation, and five nearby homes suffered lesser damage. Of the $1.9 million, $180,000 will be paid to the bank that holds the mortgage on the most-damaged home, and $100,000 to the previous owners. The rest of the settlement will be divided among the other homeowners.

The money will be used to remove the wrecked house, shore up the hill and fix the street.

The lawsuit charged that the city failed to maintain the street in front of the homes, causing water to seep through the asphalt and saturate the soil under the street’s surface.

“Now we can take down the house, repair the hill, and the neighborhood can get back to normal,” said Lisa Zeni, field deputy for City Councilman Joel Wachs.