Edison to Pay $1.16B to Settle SoCal Wildfire Lawsuits

SoCal Edison insurance lawsuits may be resolved by a proposed settlement worth $1.16 billion set to end years of claims that the utility company caused wildfires.

Edison & SoCal Wildfire Liability

Edison International, the parent company of the SoCal Edison utility company, recently announced a $1.16 billion settlement with insurance companies in connection to liability from the Thomas and Koenigstein Fires from 2017 and the Montecito Mudslide in 2018. The deal aims to put an end to claims that Edison played a role in these natural disasters in California’s Ventura and Santa Barbara counties.

The 2017 Thomas Fire burned through 281,893 acres in Ventura and Santa Barbara counties, destroying over 1,000 structures and costing over $2.2 billion in damages. Although the fire only resulted in two direct deaths, over 20 indirect deaths are attributed to the fire due to its influence on the Montecito Mudslide in 2018.

In January 2018, mudflows struck Montecito in the are affected by the Thomas Fire the year before. Due to the amount of vegetation burned by the Thomas Fire, the topsoil on hillsides in the area was destabilized. After an intense storm dropping half an inch of rain within five minutes, mud and boulders reportedly flowed down the nearby Santa Ynez Mountains into Montecito.

Debris flows reportedly topped out at 15 feet, moving up to 20 mph and plowing through people and houses in their path. Over 100 homes were destroyed in the disaster with an additional 300 homes damaged.

Additionally, at least 21 confirmed deaths occurred as a result of the mudflows. Because of the undeniable connection to the Thomas Fire, these deaths are attributed to the 2017 wildfire.

Has SoCal Edison Acknowledged Responsibility?

SoCal Edison faced liability claims from public entities, insurance companies, and individuals who pinned injuries from the natural disasters on the utility company. Edison has reportedly acknowledged responsibility for the Thomas Fire and has said it may be responsible for damages from the Woolsey Fire in 2018.

The recent settlement does not assign legal wrongdoing to SoCal Edison as a court decision would. Instead, the deal would resolve claims from insurance companies.

“We are making significant progress toward resolving wildfire-related litigation,” said Pedro J. Pizarro, president and CEO of Edison International, according to VS Star. “The settlement announced today resolves all the subrogation claims in the pending 2017 Thomas and Koenigstein fires and January 2018 Montecito Mudslides litigation.”

Edison International reportedly agreed to settlements with 23 public entities such as counties and cities who were affected by the fires and mudslide. The settlements were reportedly valued at $360 million, according to CNN.

Now that claims with insurance companies may be settled soon, experts say that Edison should be able to focus on resolving litigation from homeowners and other individual plaintiffs affected by the 2017 and 2018 disasters. In fact, Pizarro reportedly addressed this in his announcement of the insurance settlement.

“In addition, while other claims and potential claims related to the 2017/2018 Wildfire/Mudslide Events remain, SCE has reached settlements with several hundred individual plaintiffs in litigation arising from these events,” Pizzaro said, according to Business Wire.

“The company continues to explore reasonable settlement opportunities with other parties.”

SoCal Edison is not the only company to face liability claims in connection to California wildfires. PG&E has faced thousands of claims from homeowners and other plaintiffs who accuse the utility of causing several California wildfires. Malfunctions with PG&E power equipment have reportedly sparked several deadly fires including the 2018 Camp Fire – the most devastating wildfire in California’s history. The company has since declared bankruptcy due to liability claims.

Join a Free California Wildfire Property Damage Lawsuit Investigation

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If you believe your insurer underpaid you for your losses, or if you were underinsured, it is not too late to fight for the compensation you deserve.

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This article is not legal advice. It is presented
for informational purposes only.