Loopa Finance backs $18 million Chile construction defects suit

Loopa Finance is backing a Chilean construction defects lawsuit brought by nearly 300 families over alleged habitability failures at Santiago’s Villa Panamericana housing complex, in another sign of litigation finance’s growing role in Latin American mass claims.

The civil action, led by Chilean law firm Abogabir Miranda, was filed before Santiago’s 10th Civil Court on behalf of apartment owners and residents from Lot B of Villa Panamericana in Cerrillos. The claim seeks more than US$18 million from Inmobiliaria Parque Cerrillos SpA, Empresa Constructora DLP S.A., Ameris Capital S.A. and several related investment entities.

The lawsuit alleges severe construction and habitability defects at a housing complex originally built for athletes during the 2023 Pan American and Parapan American Games and later allocated to low-income families through government housing subsidies, including beneficiaries supported by Teletón. Lot B forms part of a 17-building, 1,355-apartment residential complex.

Residents began reporting defects within months of occupancy, including water leaks, cracks, electrical and plumbing problems, elevator malfunctions, and deficiencies in gas and potable water systems. Preliminary expert reports identified alleged violations of Chile’s General Urban Planning and Construction Law and basic habitability standards.

The damages claim includes approximately US$11 million for repair costs, related expenses and temporary housing while corrective work is carried out, nearly US$7 million for moral damages, and an additional amount equal to 10% of each apartment’s purchase price to reflect alleged loss in value.

Loopa said its funding will cover legal and technical costs, allowing the families to pursue compensation without assuming financial risk. Federico Muradas, Loopa’s head of legal, said the case reflects families who “placed their trust in a landmark housing project” and are now living in unacceptable conditions, adding that access to justice should not depend on their financial resources.

Abogabir Miranda partner Nicolás Vassallo is leading the litigation. He said the available technical evidence shows repeated failures across multiple stages of the project, and that the plaintiffs’ goal is both full repair of the harm suffered and higher accountability standards across Chile’s real estate industry.

The matter also gives Loopa another platform to provide funding as an access-to-justice tool in Latin America, particularly for construction, housing and mass consumer disputes where expert evidence and procedural costs can otherwise prevent meritorious claims from advancing.