Victims of the collapse of a 174-foot pedestrian bridge near Florida International University's Sweetwater campus in March 2018 are on course to receive a $103 million settlement after U.S. Bankruptcy Judge A. Jay Cristol approved a reorganization plan for general contractor Magnum Construction Management on Friday.

Formerly known as Munilla Construction Management, the company filed for Chapter 11 bankruptcy protection in March. The reorganization plan includes the settlement, which will be distributed in January, provided it survives as anticipated during an appeal window ending Dec. 28.

Six people died and and 10 were injured when 950 tons of concrete and metal collapsed onto a state road, Southwest Eighth Street. It resulted in litigation over alleged design flaws and other errors, which will be resolved under the reorganization plan.

Related story: 'They've All Got to Be Sweating Tacks': Attorneys Discuss Liability Over FIU Bridge Collapse

|

'Not a typical bankruptcy'

Jordi Guso of Berger Singerman in Miami represents debtor MCM and called this a bankruptcy case like no other.

"This is not a typical bankruptcy case where you deal with inventory and equipment," Guso said. "We're dealing with human capital here, unfortunately, because of the loss of life and the injuries that were sustained following the bridge collapse. Clearly, that is a unique and challenging dynamic, one which you don't typically see in commercial bankruptcy cases or restructuring matters."

The plan follows an earlier settlement between MCM and its insurer, which agreed to pay $42 million to victims and their families.

"No matter how much money we could pull together, it never would be enough to fill the hole for someone who's lost a loved one, or who's had a loved one seriously injured by the bridge collapse," Guso said. "That said, I think that this proceeding presents an equitable and efficient resolution of the claims, and hopefully it is a first big step in the healing process."

Guso said the case was particularly tough because of the sheer number of parties involved in negotiations—from MCM's creditors, to plaintiffs who had filed claims, to FIU, its insurer and all other defendants and their insurers.

"One element of the negotiation with one party often had impacts on others, so that was a bit of a challenging dynamic," Guso said.

To Guso, the plan exemplifies the fresh start Chapter 11 aims to provide for troubled companies like MCM, a family business founded more than 35 years ago that once employed more than 1,000 people.

"I think this is a textbook example of all the good that can be accomplished in Chapter 11," Guso said.

Counsel to the creditors Kristopher E. Aungst, partner at Wargo French in Miami, described the plan as a "win all around," noting it wasn't easy to find a resolution that benefited separate groups that were either physically or financially impacted by the accident.

"It was a huge undertaking to get this done," Aungst said. "The committee is extremely gratified that there was a plan worked out that will allow the victims to receive money that's necessary for their lives and their families as soon as possible, and that's also going to have a good return to other creditors in the case, and allow an important business and longstanding family business in Miami to continue to employ people locally."

Retired Florida Supreme Court Justice R. Fred Lewis oversaw an analysis of how the settlement will be distributed, but that information is confidential.

Read the order:

Read more: