San Diego settles La Jolla sinkhole lawsuits for nearly $14 million

The city of San Diego agreed to pay $3.925 million to nine condominium owners affected by a large sinkhole in La Jolla, according to the Times of San Diego. This payment brings the total amount the city has agreed to pay in related lawsuits to just under $14 million.

The sinkhole appeared in March 2023 near a condo complex at 8803 Gilman after a stormwater drainpipe failed. Efforts to repair the damage led to a second drainpipe failure, which caused the ground to sink further and created an 80-by-40-foot hole close to the La Jolla Terrace Condominiums.

The sinkhole caused structural damage to several buildings, including foundation cracks and dislodged doors and windows, forcing residents to evacuate their homes. Legal claims were filed in 2024 by the homeowners association and seven condominium owners against the city of San Diego and the construction company involved in the drainpipe replacement.

In August 2026, the city had already agreed to pay $10 million to settle claims from the homeowners association and another condo owner. The latest settlement completes the city's resolution of the lawsuits related to the sinkhole incident.