Trial News

Electric utility Southern California Edison (SoCal Edison) has agreed to pay $360 million to 23 public entities, including cities and counties, for claims stemming from deadly wildfires in 2017 and 2018 and a deadly mudslide in 2018. The utility has been at the center of litigation from residents, business owners, and local government after it was blamed for negligently operating and maintaining its equipment, sparking devastating wildfires that burned thousands of acres, led to mandatory evacuations, and endangered lives in heavily populated areas. SoCal Edison has not admitted wrongdoing or liability for the fires.

The settlement, which was announced mid-November, covers taxpayer losses for the 2017 Thomas and Koenigstein Fires, the 2018 Montecito Debris Flows (which are linked to the earlier wildfire burn zone), and the 2018 Woolsey Fire. The plaintiffs sued the utility for negligence, among other claims, in its operation and maintenance of its power lines and equipment, including failure to clear vegetation and brush from around electrical lines that posed a fire risk and for failure to cut power when high winds were forecasted.

Los Angeles County’s complaint alleged that “increasingly severe wildfires put [the defendant] on notice of the level of care required to prevent high voltage transmission and distribution lines from causing wildfires in foreseeable California weather conditions” and that the utility “failed to take reasonable precautions” leading up to the Woolsey Fire. The county alleged that despite “red-flag warnings”—issued by the National Weather Service when conditions are ideal for wildfires to ignite and spread quickly—and high winds, the utility did not de-energize its electrical circuits to prevent sparks from igniting a fire.

The settlement is expected to help reimburse the plaintiffs for costs related to firefighting, repairs to infrastructure, and cleanup. It will be shared among entities within Los Angeles, Santa Barbara, and Ventura counties and the cities of Calabasas, Malibu, Santa Barbara, Thousand Oaks, and Westlake Village. The settlement does not resolve lawsuits brought by residents and property owners, which remain pending.

Earlier this year, Pacific Gas & Electric (PG&E), the electric utility serving northern California, agreed to pay $11 billion to resolve insurance claims related to the 2017 wildfires in Wine Country and the 2018 Camp Fire. PG&E also has reached a $1 billion settlement with local governments for damage resulting from recent fires, including paying $500 million to Butte County and the town of Paradise, which was devastated by the 2018 Camp Fire. Last week, PG&E also announced a tentative $13.5 billion settlement to resolve almost all remaining claims related to the 2017 and 2018 northern California wildfires, including claims from more than 5,000 victims. The settlement includes compensation as well as a commitment from the utility to update its equipment. Since PG&E is currently going through Chapter 11 bankruptcy proceedings, the U.S. Bankruptcy Court must approve the settlement. 

John Fiske, an attorney for the 23 public entities, said, “SoCal Edison appears committed to helping communities impacted by the wildfires and debris flows recover and rebuild. SoCal Edison and local government work together on a regular basis, and we hope this resolution will strengthen those relationships as they address new, common challenges facing local communities.” Fiske noted that “while this is not 100%, it’s not pennies on the dollar. A lot of these communities were hit very hard. In the aftermath of these wildfires, all sorts of public resources and taxpayer resources were lost.”