Jun. 4--A group of Billings homeowners and the geotechnical engineers they sued after homes started settling into the ground have reached a tentative agreement.

Plaintiffs in the class action lawsuit are homeowners in the Copper Ridge subdivision on the far West End. Together with Rimrock Engineering and Rawhide Engineering, they are asking a judge to consider their proposed $3.44 million agreement.

The engineering firms failed to properly address concerns raised in an earlier geotechnical engineering report for the subdivision that identified "hydro-collapsible" soil in the area and called for further investigation, according to the plaintiffs.

The settlement won't become final unless Yellowstone County District Judge Gregory Todd signs off on it. A hearing is set for later in June. Homeowners covered under the lawsuit still have a chance to object.

Under the terms of the proposed agreement, money would be distributed among 663 homeowners according to a formula that awards more in cases where homeowners can document property damage.

Everyone who lives in the subdivision is covered, under the idea that even without damage to their home, property values could sink due to their proximity to the homes with collapsing foundations.

Plaintiffs attorney John Heenan said some of the homeowners have paid more than $100,000 to address structural damage.

Heenan said they expected the proposed settlement to be approved, but that they were also investigating other responsible parties involved.

"And so in our mind, this doesn't conclude the whole case," he said.

Seth Cunningham, an attorney for Rimrock Engineering, said the proposed settlement was not an admission of liability but that it would benefit everyone involved.

"The parties involved agreed that it was in their best interests to move past this matter given the limited amount of insurance funds available," Cunningham wrote.

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