Insight

Incendiary Behavior

California’s future will see more frequent wildfires caused by faulty equipment. Litigation tied to recent Golden State infernos shows the way forward.

Mountain range with glow of wildfires behind it
Rahul Ravipudi

Rahul Ravipudi and Lyssa A. Roberts

August 31, 2023 11:00 PM

In October 2017, Pacific Gas & Electric’s poorly maintained, poorly operated equipment sparked some 14 separate wildfires in Northern California. The blazes included the Tubbs Fire, which grew to become the most destructive wildfire in California’s history to that point. It burned so quickly that many residents had no chance to escape; 22 lives were lost. Less than two months later, on December 4, Southern California Edison’s faulty equipment ignited the Thomas Fire, which burned 281,000 acres in Ventura and Santa Barbara Counties, destroyed hundreds of homes, displaced thousands of residents and businesses and caused more than $2 billion in damages.

A month after that, heavy rains fell onto the Thomas Fire’s burn scars in the hills above Montecito, triggering a massive debris flow that caused catastrophic property damage and killed 23 people, including five children.

On November 8, 2018, the Camp Fire was ignited by PG&E’s ill-maintained transmission line in Butte County, north of Sacramento. High winds and dry conditions propelled the blaze into an urban firestorm in the foothill town of Paradise, trapping and killing 85 people. The same day, SCE’s broken electrical equipment at the Santa Susana Field Laboratory, northwest of Los Angeles, sparked the Woolsey Fire, which burned nearly 97,000 acres, destroyed hundreds of homes, displaced thousands of residents and businesses and killed three people.

This catalog of horrors represents just a few of the devastating utility-caused wildfires that have ravaged California in recent years. Indeed, in just the last decade, electrical infrastructure has ignited at least eight of the 20 most destructive wildfires in the state’s history, and the trend shows no sign of abating or reversing.

The utility infrastructure in the Golden State is old. The publicly traded, for-profit utility companies are responsible—both morally and legally—for maintaining their lines to guard against such catastrophic fires. Sadly, these regular fires, caused by long-term mismanagement, are the product of these companies prioritizing shareholder dividends and C-suite compensation over the safety of California and its residents. Further, in early 2022, the state auditor reported to the legislature that regulators were failing to hold electric utilities accountable. That report, California’s Oversight of the Efforts by Investor-Owned Utilities to Mitigate the Risk of Wildfires Needs Improvement, found that the recently formed Office of Energy Infrastructure Safety approved utilities’ wildfire-prevention plans even when they were “seriously deficient.”

Tens of thousands of miles of bare power lines remain exposed in areas of high fire threat, leaving power shutoffs as the only option and last resort to stop wildfire ignition. According to the audit, the power companies’ efforts to “harden their grids” and make their equipment more fire-resistant are insufficient, and neither the utilities nor their regulators have taken steps to ensure that priority is given to upgrades in areas at the highest risk.

The old, often decrepit infrastructure will surely spark fires for years to come given that the utility equipment has not been responsibly managed for decades, and the pace of “grid hardening” has been slow in recent years. The inevitability of wildfires sparked by electrical equipment, and the expectation that utilities will continue to deny liability, means California residents and businesses must be prepared to litigate to obtain compensation for seemingly unavoidable damages.

Considerations for Liability Workup Against Defendants

The Southern California Fire Cases coordinated proceeding (JCCP 4965) presents an example of how a unified litigation approach can create opportunities for concessions as well as leverage for a large, diverse plaintiff group against utilities. Liability was strongly contested by Southern California Edison for years. While the utility issued public statements in the fall of 2018 admitting that its equipment was associated with an ignition point of the Thomas Fire, it denied responsibility for a second, separate ignition point, which it then argued was to blame for the lion’s share of fire damage, including the deadly debris flows that decimated Montecito.

SCE also cross-complained about the debris flow against various public entities, including the County of Santa Barbara and CalTrans, alleging that their infrastructure was negligently maintained or had otherwise failed, causing or contributing to the damage from the mudslide. These allegations threatened to cause significant confusion for any jury that would later hear a bellwether case at trial.

Indeed, in just the last decade, electrical infrastructure has ignited at least eight of the 20 most destructive wildfires in the state’s history."

Yet, by early 2021, at the height of the pandemic, SCE had agreed to a settlement protocol that included an acceptance of liability and a damages-only adjudication that would be available to any plaintiff who was coordinated into the JCCP, including all debris-flow victims. Through the protocol, thousands of claimants had the opportunity to resolve their cases through traditional mediation or binding mediation while preserving the right to a damages-only jury or bench trial at the plaintiffs’ election. The protocol also required SCE to maintain a specific pace in scheduling mediations with plaintiffs who opted in.

The journey to such an outcome required a unified workup of liability and all available damages, including punitive damages. Our firm, Panish Shea Boyle Ravipudi LLP, served as court-appointed co-lead counsel and, alongside other members of the plaintiffs’ executive committee, served extensive written discovery and propounded hundreds of thousands of documents from SCE. In excess of 160 witness depositions were taken between 2018 and 2020; more than 20 experts were retained to prove liability and were meticulously consulted in preparation for discovery and depositions.

Even as the pandemic shuttered businesses around the world, trial preparation remained paramount. Plaintiffs pressed forward by working with a court reporting company to develop a remote video deposition platform to ensure that SCE’s defense team would continue producing witnesses and to conduct depositions and courtroom hearings remotely. These efforts were made against the backdrop of a further pressure point for the utility: namely, that a verdict determining that SCE was negligent in maintaining its equipment would affect its ability to pass through wildfire damages to rate payers. For these reasons, a unified focus on getting to trial resulted in a strong bargaining position for the plaintiffs.

Considerations Regarding Damages in Wildfire Cases

With an eye toward future wildfire litigation, it’s important to consider the damages available to wildfire victims and how best to prepare to prove those losses from the outset. Of note, the law in California provides that in a property damage claim, the general rule is that the plaintiff may recover the lesser of 1) the diminution in the property’s fair market value, as measured immediately before and immediately after the damage; or 2) the cost to repair the damage and restore the property to its pre-trespass condition, plus the value of any lost use.

Notwithstanding this general limitation, if a plaintiff has a “personal reason” to restore the property, the plaintiff may recover the restoration costs even if such costs exceed the diminution in value. Restoration costs may be awarded “even though they exceed the decrease in market value if “there is a reason personal to the owner for restoring the original condition” (Rest.2d Torts, § 929, com. b, at pp. 545-546) or “where there is reason to believe that the plaintiff will, in fact, make the repairs” (22 Am.Jur.2d, Damages, § 132, at p. 192).”

Diminution in value (DIV) typically yields less overall value than a claim to rebuild or restore, particularly when there is a total loss of the main dwelling or structure on the property. The defendant utility may attempt to reduce its exposure by arguing that the plaintiff is limited to DIV because he, she or they do not have a sufficient “personal reason” (e.g., the property was an investment and not the plaintiffs’ primary residence) or because he, she or they have not demonstrated a “genuine intent” to rebuild (e.g., progress toward the restoration is characterized as insufficient). A thorough working knowledge of what must be shown under the law is critical to prepare a case for trial or mediation.

Plaintiffs who have sustained damage to their real or personal property due to a utility-caused wildfire are also entitled to compensation for loss of use (i.e., the fair market rental value of the property as it existed before the fire during the period it cannot be used); annoyance, inconvenience and mental anguish, which amount to emotional distress damages for the loss of use and enjoyment of the property; and certain post-verdict damages, including attorneys’ fees and certain costs in connection with the cause of action for inverse condemnation. These damages remain separate from any negligence-based causes of action, such as those for personal injury or wrongful death, and for which other noneconomic demands may be pursued.

In sum, California’s future is guaranteed to feature more frequent and devastating utility-ignited wildfires. It is equally certain that plaintiffs will be forced into litigation to obtain compensation for losses they suffer. Despite their nature as “mass tort” cases, these claims must be worked up with an eye toward trial on liability and a strong working knowledge of the remedies available to victims.

Panish | Shea | Boyle | Ravipudi LLP partner Rahul Ravipudi serves a Co-Lead Counsel in the Southern California Fire Cases litigation (JCCP 4965) as well as Co-Lead Counsel (alternate) in the Woolsey Fire litigation. Named a 2023 Best Lawyers Mass Tort/Class Action - Plaintiffs “Lawyer of the Year” in Los Angeles, Rahul has built a reputation of holding utility companies accountable—recovering hundreds of millions of dollars for clients who have experienced catastrophic harms and losses due to utility-caused wildfires. Rahul regularly meets with members of the California legislature and other safety advocates to discuss wildfire prevention through utility companies spending their profits on improving and maintaining their infrastructure to prevent future disasters.

Panish | Shea | Boyle | Ravipudi LLP attorney Lyssa A. Roberts has recovered hundreds of millions of dollars for wildfire victims in California and serves as Liaison Counsel in the Southern California Fire Cases (JCCP 4965). A member of the American Board of Trial Advocates as well as the California and Nevada Bar Associations, Lyssa has been named in The Best Lawyers in America® since 2019 in Personal Injury Litigation - Plaintiffs and specializes in the areas of personal injury, wrongful death, premises liability, professional negligence, products liability, wildfires and environmental torts.

Headline Image: Unsplash/Ross Stone

Related Articles

California Grad Student Strike Sparks Legal Free-Speech Battle


by Gregory Sirico

Graduate students in California strike over free speech rights amidst university crackdowns on Pro-Palestine protests, fueling an ongoing legal battle.

Megaphone held up by arm wrapped in barbed wire

California Overhauls Controversial Private Attorneys General Act


by Katherine A. Hren and Eric C. Schwettmann

Enacted 20 years ago, PAGA is well behind the litigation curve in an age where change is always in motion.

Lawyer seated in an empty court

Chemical Considerations


by David A. Fusco, Tara L. Pehush, Laura K. Veith and Vincenzo R. Chimera

Consumer exposure to a variety of chemicals is increasingly fertile ground for the plaintiffs’ bar, with an array of litigation targeting manufacturers.

Shadowy backlit blue liquid spray bottle

Bringing Down the Hammer


by Joseph Trotti

Thor relied on one weapon, his mighty hammer. General counsel tends to play to their own strengths. What worked for the Viking deity may be a bad idea for you.

Gold plated toolbox with gold tools popping out of it

Rise of the Machines


by Michele M. Jochner

New “generative AI” programs have great potential to help attorneys with certain tasks that will make their work more efficient. Yet the use of any new technology must always adhere to strict ethical standards. One notorious recent case shows why.

Illustration of robot thinking

The Resolution Solution


by John Oh

The pandemic threw sand in the gears of America’s slow-moving trial system, making mediation an increasingly attractive option for plaintiffs and defendants.

Vintage image of man with fists up with yellow backdrop and oversized hand pointing

Law Firm Marketing ROI: Strategies for Small and Midsize Firms


by Jamilla Tabbara

Understand how to improve your marketing ROI with methods tailored for law firms.

3D Computer with Icons Representing ROI Tools and Metrics

Law Firm Marketing: 5 Strategic Steps to Attract More Clients


by Jamilla Tabbara

A practical framework for marketing a law firm with purpose.

Light bulb above a chalkboard illustrating strategic ideas

Best Lawyers Introduces Smithy AI


by Jamilla Tabbara

Transforming legal content creation for attorneys and firms.

Start using Smithy AI, a content tool by Best Lawyers

Why Visibility Matters: The Case for Legal Thought Leadership Today


by Jamilla Tabbara

Build trust before the first consultation.

 lawyer standing on a staircase, symbolizing advancement and thought leadership

How Whitepapers Become Legal Content That Builds Trust


by Jamilla Tabbara

Turning expertise into visibility with strategic white papers.

Stack of legal white papers on a desk representing thought leadership

How to Use Content Syndication to Get Your Law Firm Website Content Seen


by Jamilla Tabbara

Syndicate your law firm’s content on trusted legal platforms to reach a wider audience and drive qualified traffic back to your website.

Legal professional drafting syndicated content on a laptop for third-party publication

Changes in California Employment Law for 2025


by Laurie Villanueva

What employers need to know to ensure compliance in the coming year and beyond

A pair of hands holding a checklist featuring a generic profile picture and the state of California

Changes in Employment Arbitration for 2025


by Debra Ellwood Meppen, Brandon D. Saxon and Laurie Villanueva

What businesses need to know to stay ahead of the curve.

Suited man holding up falling walls with gray and yellow backdrop

Legal Content Strategy: A Key Driver of Law Firm Growth


by Jamilla Tabbara

Is your law firm’s content missing the mark? Here’s why it’s not delivering results.

Marketer developing a strategic plan for legal business growth.

The Best Lawyers Network: Global Recognition with Long-term Value


by Jamilla Tabbara

Learn how Best Lawyers' peer-review process helps recognized lawyers attract more clients and referral opportunities.

Lawyers networking

Trending Articles

Introducing the 2026 Best Lawyers Awards in Australia, Japan, New Zealand and Singapore


by Jennifer Verta

This year’s awards reflect the strength of the Best Lawyers network and its role in elevating legal talent worldwide.

2026 Best Lawyers Awards in Australia, Japan, New Zealand and Singapore

Revealing the 2026 Best Lawyers Awards in Germany, France, Switzerland and Austria


by Jamilla Tabbara

These honors underscore the reach of the Best Lawyers network and its focus on top legal talent.

map of Germany, France, Switzerland and Austria

Effective Communication: A Conversation with Jefferson Fisher


by Jamilla Tabbara

The power of effective communication beyond the law.

 Image of Jefferson Fisher and Phillip Greer engaged in a conversation about effective communication

The 2025 Legal Outlook Survey Results Are In


by Jennifer Verta

Discover what Best Lawyers honorees see ahead for the legal industry.

Person standing at a crossroads with multiple intersecting paths and a signpost.

The Best Lawyers Network: Global Recognition with Long-term Value


by Jamilla Tabbara

Learn how Best Lawyers' peer-review process helps recognized lawyers attract more clients and referral opportunities.

Lawyers networking

Jefferson Fisher: The Secrets to Influential Legal Marketing


by Jennifer Verta

How lawyers can apply Jefferson Fisher’s communication and marketing strategies to build trust, attract clients and grow their practice.

Portrait of Jefferson Fisher a legal marketing expert

Is Your Law Firm’s Website Driving Clients Away?


by Jamilla Tabbara

Identify key website issues that may be affecting client engagement and retention.

Phone displaying 'This site cannot be reached' message

A Guide to Workers' Compensation Law for 2025 and Beyond


by Bryan Driscoll

A woman with a laptop screen reflected in her glasses

Best Lawyers Launches CMO Advisory Board


by Jamilla Tabbara

Strategic counsel from legal marketing’s most experienced voices.

Group photo of Best Lawyers CMO Advisory Board members

Common Law Firm Landing Page Problems to Address


by Jamilla Tabbara

Identify key issues on law firm landing pages to improve client engagement and conversion.

Laptop showing law firm landing page analytics

Changes in California Employment Law for 2025


by Laurie Villanueva

What employers need to know to ensure compliance in the coming year and beyond

A pair of hands holding a checklist featuring a generic profile picture and the state of California

New Employment Law Recognizes Extraordinary Stress Is Everyday Reality for NY Lawyers


by Bryan Driscoll

A stressed woman has her head resting on her hands above a laptop

Turn Visitors into Clients with Law Firm Website SEO That Converts


by Jamilla Tabbara

Learn how to create high-converting law firm landing pages that drive client engagement and lead generation.

Laptop screen displaying website tools to improve client conversion rates

SEO for Law Firms: Overcoming Common Challenges


by Jamilla Tabbara

Tackle common SEO challenges and take the next step with our guide, How to Make Your Law Firm Easier to Find Online.

Graphic image of a phone displaying SEO rankings, with positions 1, 2 and 3 on the screen

Best Lawyers Introduces Smithy AI


by Jamilla Tabbara

Transforming legal content creation for attorneys and firms.

Start using Smithy AI, a content tool by Best Lawyers

6 Steps to Finding the Right Keywords for Your Legal Content


by Jamilla Tabbara

Follow a practical guide to keyword research and boost your law firm’s SEO to reach more potential clients.

 letters symbolizing keywords for legal content