The Los Angeles County Metropolitan Transportation Authority has paid $1.6 million to settle a lawsuit filed by the owners of the El Capitan Theatre related to problems caused by the construction of a Red Line subway station a decade ago.

The agency agreed to pay the money to compensate the CUNA Mutual Life Insurance Co. as a result of work done strengthening the theater’s foundation and protecting its facade when subway construction caused land in the area to settle.

CUNA, owner of the historic theater, filed the lawsuit nine years ago after the transit agency refused to reimburse the company for $755,000 spent on the theater, just 12 feet away from Hollywood & Highland entertainment and retail center where the subway station is located.

The settlement was reached after a Los Angeles County Superior Court judge ruled that the agency was liable for damages, but before any amount was established. The final settlement figure includes interest and attorneys’ fees and follows original court decisions that went against the insurance company.