title
Authorization to settle the matter of Shongo Grice (“Plaintiff”) v Chicago Housing Authority and East Lake Management, Inc., Case No. 2022 L 005871.
presenter
Presenter: Elizabeth Silas, Interim Chief Legal Officer
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Recommendation
The Interim Chief Executive Officer recommends to the Board of Commissioners of the Chicago Housing Authority (“CHA”) the approval of a settlement agreement to compensate Plaintiff for injuries he suffered due to exposure to Legionella bacteria at the Major Adams Community Center (123-125 N. Hoyne) in early July of 2021. Mr. Grice worked at the Center.
Mr. Grice began experiencing stroke like symptoms and was admitted to Northwestern Hospital. He was eventually diagnosed with legionella disease and treated by multiple specialties over the course of the month of July 2021, amassing medical bills of $300,000. He was released from the hospital with some physical therapy but continues to have some neuro-cognitive issues which prevent him from working. This claim is in dispute amongst the medical providers.
Plaintiff is alleging negligent maintenance of the water system. Post-occurrence testing of the water system established that legionella had developed in the water heaters, likely from being turned off during the COVID shut down. Prior to this incident, CHA did not have a water management policy or procedure to prevent legionella development in the water system. As such, liability against the defendants looks likely.
While there have not been very many Legionella cases, there have been high jury verdicts. In Schoenfield v. Marriot International, 12 L 12868 (Circuit Court of Cook County), the plaintiff attorney contracted Legionnaires Disease from the Marriott Hotel decorative water fountain. He developed a pneumonia, but he was not hospitalized and recovered quickly. He claimed, however, that he sustained permanent neurocognitive difficulties which forced him to stop working as a defense attorney. The jury awarded the plaintiff $3.8 million. In Muro v. Marriot International, 13 C 6441, the family of a doctor who got sick from the same fountain and died was awarded $2.3 million by a jury. These verdicts would likely be two and possibly three times higher if tried today. As such, there is a potential for significant exposure here should the CHA be found to have been negligent and Grice can establish significant harm.
On September 10, 2024, a mediation was held through ADR systems. Retired Judge Janice Brosnahan presided over the discussions. Plaintiff’s opening demand was $10 million. After approximately eight hours of negotiations, Judge Brosnahan recommended a settlement of $2.8 million. Outside counsel for the CHA, Toby Eveland of Saul Ewing, also reviewed the file and concurred with Judge Brosnahan’s recommendation.
Settling this matter as set forth above is in the CHA’s best interest because of the severity and on-going nature of the injury, the potential for future medical expenses and the on-going wage loss could easily result in a jury verdict well in excess of this recommendation and possibly of the initial demand of $10 million.
Respectfully Submitted:
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Angela Hurlock
Interim Chief Executive