$8.45M settlement reached over Atlanta apartment complex fire

The owners and managers of an Atlanta apartment complex destroyed by fire in late 2023 have agreed to pay $8.45 million to settle related lawsuits by affected tenants and businesses.

More than 280 people were living at the Reserve at LaVista Walk apartments on Lavista Road when the fire, believed to be caused by a resident’s fireworks, gutted the complex on Nov. 10, 2023. More than 80 firefighters responded.

Under the settlement, each eligible adult tenant is expected to receive at least $4,500, and each child resident $2,500, court filings show. More money will compensate those whose property was damaged or lost.

Since the fire, several companies behind the complex have been fighting claims they are liable for the associated losses. The defendant companies, including LHNH LaVista, Silverpoint Management and Avenium Group, deny liability.

On Wednesday, plaintiffs representing a class of people affected by the fire asked a federal judge in Atlanta to approve the settlement and start the process for distributing the funds. They said the agreement follows extensive investigation and mediation, and provides substantial monetary relief “in the face of the real risks and delay of continued litigation.”

“Defendants do not oppose the relief requested,” the plaintiffs said in their court filing. “Although plaintiffs believe in the strength of their claims, continued litigation would carry real risk and delay. Defendants deny liability and would continue to contest responsibility for the fire, its cause and origin, and the existence and extent of the residents’ damages.”

Lawyers for the defendant companies did not respond Thursday to an inquiry about the settlement.

“We feel good about the settlement and look forward to presenting it to the class members and the court,” Kenneth Brosnahan, an attorney for the plaintiffs, told The Atlanta Journal-Constitution.

The Reserve at LaVista Walk apartments in Atlanta was demolished after a fire, believed to have been ignited by fireworks on the roof, destroyed the complex in November 2023. (John Spink/AJC)

If approved by the judge, the deal will provide $1.3 million in “displacement” funds, to be divided evenly among every eligible adult resident of the complex who submits a claim. In addition, each minor resident will be able to receive $2,500.

The rest of the money, once attorney fees are taken out, will be used to compensate eligible tenants and their insurers for property losses. The average property loss claim is expected to be about $20,000, the plaintiffs said.

Many residents were forced to evacuate the complex at night as the fire spread. The blaze caused road closures and disruption to businesses within and near the property.

Charnelle Gunn, a 24-year-old tenant, and her 42-year-old associate, Robert Stokes, were arrested in relation to the fire, accused of starting it by igniting fireworks on the apartment complex roof.

Gunn was sentenced late last year to 10 years of probation on charges that included second-degree arson, her attorney said. The case against Stokes was dropped around the same time, court records show.

If the settlement is approved, eligible class members will be able to opt in or out. If they opt out, they maintain the right to separately sue the defendant companies.

The settlement resolves a related case filed in Fulton County in May against contractors hired to secure the apartment complex after the fire, alleging more than 40 units were broken into while residents were prevented from recovering their belongings.

It also ends an associated case filed in federal court in November by commercial tenants of the four-story complex.

Claims against the property owners and managers included that they failed to maintain adequate fire detection and alarm systems and ignored previous complaints about fireworks being ignited on-site.