Businessmen who sued Carollo will receive $12 million in compensation from the city of Miami

MIAMI — The Little Havana businesses that hired Commissioner Joe Carollo received a big payout from the city of Miami.

The city has agreed to pay $12 million to settle its claim that the embattled commissioner waged a personal vendetta against it.

Commissioners who voted in favor said it was the best way to protect taxpayers' money.

“For me it was a very bittersweet vote,” Miami Commissioner Damian Pardo said.

Pardo joined three other commissioners in reaching a massive $12.5 million settlement with Bill Fuller.

The owner of Mad Room LLC sued the city three years ago, claiming the city government used weaponized code inspection against his businesses as a form of political retaliation.

The only dissenting vote came from Carollo. He was not named in that lawsuit, but was found civilly liable in a similar federal lawsuit in June 2023 for violating business owners' First Amendment rights by weaponizing his position in city government.

Carollo told Local 10 News in a statement: “This lawsuit is not against me; It is aimed at the city of Miami, where these bar owners are accusing numerous employees of inappropriate actions against their business, which is false. On the contrary, the only evidence found is these plaintiffs’ violation of our laws and abuse of our residents.”

Pardo, on the other hand, said Carollo should face consequences.

“This is about accountability, and residents are angry,” Pardo said.

The settlement avoids the prospect of a protracted legal battle and a potential taxpayer judgment of nearly $28 million.

“On the one hand, there may be a much higher cost risk to the city of Miami, but the plaintiffs also agreed on that,” Pardo said. “And for us, for a city, it was a good decision. Keep going, turn the page, keep going.”

Fuller could not be reached for comment Friday afternoon.

Commissioners Miguel Gabela and Christine King, who also voted for the deal, said it was in the best interest of the city and its taxpayers.