Court lowers award for Loop flood damage

Chicago taxpayers will take a roughly $16 million hit, while Loopbusinesses are out $14 million, under a federal appellate courtdecision released Friday that reduces what insurers must pay for themassive 1992 Loop flood.

The opinion, written by U.S. Court of Appeals Judge FrankEasterbrook, slashes Great Lakes Dredge & Dock Co.'s liability from$150 million to $40 million.

The city blamed Great Lakes for the flood when it drove a pilinginto a subterranean tunnel while doing repairs, eventually sendingChicago River water pouring into Loop basements.

The decision "wipes us out," said William Harte, who representsmore than 100 flood-damaged Loop businesses in a class actionlawsuit.

Harte vowed to appeal. The businesses still will be getting about$13 million from other settlements.