Legal Updates on the 2025 Los Angeles Fires

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LEGAL UPDATE

March 2025

Southern California has been devastated by multiple wildfires, leaving communities in ruins, displacing thousands, and causing significant economic and environmental damage. As victims seek accountability and compensation, numerous lawsuits have been filed against utility companies, government agencies, and private entities accused of negligence.

This article provides a comprehensive update on the latest lawsuits related to wildfires, legal precedents, California state laws governing liability, and what fire victims need to know moving forward.

Key California Laws Governing Wildfire Liability

California has specific laws that determine liability and legal recourse in wildfire cases. These include:

  • Inverse Condemnation (California Constitution, Article I, Section 19) – This law allows property owners to seek compensation from utilities when their equipment causes a wildfire, even if the company was not negligent.
  • California Public Utilities Code § 451 – Requires utilities to provide safe and reliable service, holding them accountable for negligence in maintaining power lines.
  • California Health and Safety Code § 13009 – Establishes liability for those who negligently or intentionally cause fires, allowing fire agencies to recover costs.
  • California Civil Code § 3288 – Governs damages awarded in wildfire lawsuits, including compensation for emotional distress, property loss, and business interruption.

Over the years, California lawmakers and courts have responded to devastating wildfires with new laws, regulatory changes, and landmark legal decisions that have shaped wildfire litigation. Below is a detailed timeline of key legal developments, major settlements, and regulatory changes following significant California wildfires.

2017-2018: The Beginning of High-Profile Utility Liability Cases

The 2017 and 2018 wildfire seasons were among the most destructive in California history, leading to sweeping changes in wildfire liability laws. One of the most significant cases involved Pacific Gas & Electric (PG&E), which was found responsible for the Camp Fire (2018)—the deadliest wildfire in California’s history.

  • Inverse Condemnation Doctrine Reinforced (2017): Courts reaffirmed that California utilities could be held liable for wildfires even if they were not negligent.
  • Senate Bill 901 (September 2018): Allowed utilities to issue bonds to pay for wildfire liabilities, shifting some financial burden to ratepayers.
  • PG&E’s Bankruptcy (January 2019): PG&E filed for bankruptcy due to wildfire liabilities and later agreed to a $13.5 billion settlement for victims.

2019-2020: Strengthening Wildfire Prevention and Corporate Accountability

  • Assembly Bill 1054 (July 2019): Established the $21 billion California Wildfire Fund to compensate victims while protecting utilities from bankruptcy.
  • PG&E Criminal Charges (2020): PG&E was charged with 84 counts of involuntary manslaughter for the Camp Fire and paid billions in settlements.
  • Southern California Edison (SCE) Settlements (2020): SCE agreed to pay $360 million to settle claims related to the Thomas Fire (2017) and the Woolsey Fire (2018).

2021-2022: Expanding Liability Beyond Utilities

  • Senate Bill 332 (2021): Imposed stricter regulations on prescribed burns, requiring landowners to have insurance coverage for fire escape liability.
  • Kincade Fire Lawsuit (2022): PG&E paid $125 million in penalties for the Kincade Fire (2019).
  • Dixie Fire Lawsuits (2022): Over 200 lawsuits were filed against PG&E for the Dixie Fire (2021), with ongoing legal battles into 2023.

2023-2024: Regulatory Crackdowns and Larger Settlements

  • Wildfire Prevention & Grid Resilience Act (2023): Mandated utilities to invest in underground power lines in high-risk areas.
  • PG&E and SCE Facing New Penalties (2023-2024): Both companies are under investigation for their roles in recent wildfires.

January 7, 2025: The Eaton Fire Ignites

The Eaton Fire erupted in Eaton Canyon, rapidly spreading to foothill communities, including Altadena. The fire burned over 200,000 acres, resulting in at least 17 fatalities and the destruction of more than 9,000 structures. Fire officials stated that extreme drought conditions and high winds contributed to the fire’s rapid spread. Investigators initially suspected utility equipment failure as a possible ignition source.

January 13, 2025: Lawsuits Against Southern California Edison (SCE) Begin

Residents impacted by the Eaton Fire began filing lawsuits against SCE, alleging that outdated and poorly maintained electrical infrastructure was responsible for sparking the fire. Plaintiffs argued that the company failed to follow safety regulations designed to prevent such disasters. Early reports indicated that SCE had been warned about the potential fire risk in high-wind conditions but did not take appropriate action.

January 16, 2025: Wrongful Death Lawsuit Filed

The first wrongful death lawsuit was filed by the family of a victim who perished in the blaze. The suit alleged gross negligence on the part of SCE, stating that the company had a duty to properly maintain its power lines and implement safety shutoffs during extreme fire conditions. The case highlighted the growing trend of wildfire victims seeking individual accountability rather than relying solely on class-action settlements.

District attorneys in Los Angeles County launched investigations into reports of price gouging on rental properties, hotels, and essential goods. Under California law, businesses and landlords are prohibited from raising prices excessively during a state of emergency. Violators could face significant fines and legal action.

February 3, 2025: Evidence Against SCE Strengthens

State investigators and forensic experts released preliminary findings suggesting that SCE’s electrical grid failure was the probable cause of the fire. The report detailed instances of uninsulated power lines sparking amid high winds, igniting dry vegetation in the canyon. This evidence significantly strengthened ongoing litigation against the company.

March 6, 2025: Environmental Regulation Suspensions for Fire Prevention

Governor Newsom issued an executive order suspending parts of CEQA and the Coastal Act to accelerate wildfire prevention efforts.

How Audet & Partners Can Help Wildfire Victims

At Audet & Partners, we are dedicated to representing wildfire victims in their pursuit of justice and compensation. Our experienced legal team has a deep understanding of California wildfire laws and has successfully litigated cases against major utility companies, government agencies, and negligent parties. We offer personalized legal strategies tailored to each client’s unique situation, ensuring they receive the maximum compensation they deserve. Schedule a Consultation

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