Province Agrees to $400,000 Payment in $10M Elliot Lake Mall Collapse Settlement

On April 7, 2026, new court filings revealed that the Province of Ontario has agreed to contribute $400,000 toward a global $10 million settlement to resolve the long-running class-action lawsuit stemming from the 2012 Algo Centre Mall collapse. The disaster, which killed two women and injured 19 others, led to over a decade of litigation. 

While a $10-million “all-inclusive” resolution was announced in March, recent legal submissions have finally disclosed the exact financial contributions of each defendant. The Superior Court of Justice is scheduled to hold a hearing on April 10, 2026, to determine if the settlement is fair and reasonable for the approximately 300 class members.

Settlement Fund Breakdown

The total settlement amount of $10,775,000 (which includes a separate $775,000 claim for a former anchor tenant) is being funded by a group of municipal, provincial, and private defendants:

Defendant	Contribution Amount
City of Elliot Lake	$3,500,000
Algoma Central Properties (Mall Builder)	$2,000,000
Eastwood Mall Inc. / Bob Nazarian (Owners at time of collapse)	$1,745,000
Retirement Living / NorDev Group (Former Owners)	$1,000,000
M.R. Wright & Associates / Robert Wood (Engineering Firm)	$730,000
Province of Ontario	$400,000
Coreslab Structures (Ont) Inc.	$225,000
James Keywan	$100,000

Why Did the Province Pay?

The 2014 public inquiry into the collapse concluded that the tragedy was a story of “human failure,” citing negligence across several levels of government and industry. Specifically, the inquiry found:

• Inspection Failures: Provincial and municipal officials failed in their duty to protect the public by not properly enforcing building codes despite decades of reported leaks.
• Structural Decay: The rooftop parking lot had leaked since it opened in 1980, with road salt and slush eventually corroding the steel beams to the point of catastrophic failure.

The $400,000 payment by the province represents a compromise to end the litigation, though the government maintains it is not admitting any wrongdoing.

Related article: Baltimore Key Bridge Update, $350M Insurance Settlement Reached as High-Stakes Trial Loom

Distribution & Payouts for Class Members

If the court approves the deal on April 10, the funds will be distributed as follows:

• Legal Fees: Approximately $2.5 million (25%) will go to class counsel (Roy O’Connor LLP).
• Administrative Costs: Roughly $700,000 is earmarked for an independent adjudicator and administrative fees.
• Net Fund for Victims: Approximately $6 million will be split among the 300 class members.
• Eligibility: Claimants include individuals who suffered physical or psychological injury, employees who lost wages, and business owners who suffered losses.

Key Dates & 2026 Timeline

Milestone	Date
Proposed Settlement Announced	March 2, 2026
Defendant Payment Breakdown Disclosed	April 7, 2026
Settlement Approval Hearing (Virtual)	April 10, 2026 (10:00 AM)
Initial Claims Assessment	Summer 2026 (Expected)

Frequently Asked Questions

Is the $10 million enough?

Lawyers for the plaintiffs describe the amount as a “reasonable compromise.” Continuing to litigate could take another 5 to 7 years with no guarantee of a higher payout, especially given the financial status of some defendants.

How do I join the hearing?

The hearing is being held via Zoom. Class members can find the link and official court-approved notices at the Roy O’Connor LLP case website.

What happens if the judge rejects the deal?

If the court finds the settlement unfair, all parties will return to active litigation, which could take years to resolve.

“Missing Pillars” of Legal Reporting

• Discovery Insights: Over 14 years, mediation occurred behind closed doors. Only recent filings revealed that the City of Elliot Lake’s $3.5 million portion is covered entirely by insurance, rather than local tax dollars.
• Bellwether Context: This case is a “bellwether” for municipal and provincial liability in structural failures. It underscores that government bodies can be held financially accountable for “inspection negligence” even decades after a building’s construction.
• Objector Status: There are currently no high-profile objectors to the $10M deal. Most class members are reportedly in favor of the settlement to achieve “closure” after 14 years of waiting.
• Tax Implications: In Canada, payments for personal injury or “pain and suffering” are typically non-taxable. However, portions of the settlement for lost wages or business income may be subject to income tax.
• Attorney Fee Breakdown: The legal team’s $2.5 million fee was set by a 25% retainer agreement signed at the start of the litigation in 2014.

Last Updated: April 8, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.