The causes of the LA fires that gutted vast parts of the State of California are being speculated about as the region attempts to recover from the massive devastation. The investigations are complex, but some possible origins are high power voltage lines, arson, or embers from a small, slow-smoldering fire. A related question is who’s going to pay damages, and several lawsuits had already been filed before the blazes had even been completely extinguished.
Southern California Edison is being targeted by lawsuits over the LA fires
The legal fraternity wasted no time in filing lawsuits against electric utility company Southern California Edison (SCE). Both the Palisades fire and the Eaton fire were reportedly mostly contained on January 26, 2025, after raging on for almost three weeks since January 7.
The lawsuits claim that the investor-owned power company is to blame for the Eaton fire, which started in Altadena. It’s alleged that the company equipment ignited the blaze that destroyed around 4,600 structures across 14,000 acres.
Both fires started under conducive conditions of low humidity, high winds, and an unusually dry winter season in the southern parts of California.
Southern California Edison acknowledged that “lawsuits related to the Eaton fire have been filed.” A spokesman told the media that SCE would review them and “the cause of the fire continues to be under investigation.”
While the LA fires were causing destruction in California, some people were trying to cause a different kind of destruction on social media by spreading violence-based misinformation about the cause of the blazes.
The context of lawsuits against utilities in the United States
The context of liability for large privately owned utilities has changed since a series of fires caused by Pacific Gas & Electric in 2017 and 2018 destroyed thousands of acres of northern California. More than 100 people died and thousands of homes and businesses were destroyed.
After the PG&E disaster, state lawmakers instituted the $21 billion California Wildfire Fund in 2019. This allows for speedier and higher compensation for losses due to some utility-caused fires. It also offers protection for power companies in the event that they are hit with massive claims.
The California Wildfire Fund doesn’t cover all Californians
The fund provides limited coverage, which is likely to result in uneven recompense for those who suffered losses in the fire. It also won’t cover people in Pacific Palisades, for example, where a separate fire burned in an area not covered by the fund. Despite its name, the California Wildfire Fund fund is not available to all California wildfire victims in general. Gerald Singleton, lawyer for the plaintiffs who have filed a suit against the SCE in connection with the Eaton fire, explained:
“It’s important to understand what the fund is and what it isn’t. It essentially acts as a form of reinsurance.”
Singleton said preliminary estimates of damage caused by the Eaton fire range from $5 billion to $7 billion.
The fund explains on its website that only claims against the three utilities that agreed to contribute a combined $10.5 billion to participate are covered, which are SCE, PG&E, and San Diego Gas & Electric. Funds will only be paid out if the utility is found liable for causing the fire.
The other $10.5 billion is contributed by the utilities’ customers, who will be paying an average surcharge of $2.50 per month until 2036, at which point it will probably go up.
In more news about the LA fires, Californians who suffered massive losses in the LA fires in January 2025 have another nightmare to deal with: trying to get insurance companies to pay their claims. Some insurers are less inclined to approve claims than others, and three of the biggest companies are the worst offenders.
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