Los Angeles County sued Edison International to recoup its losses from a January wildfire that was one of the most destructive in California history.
The suit alleges that equipment owned by the company’s Southern California Edison utility caused the Eaton Fire. The county claims it’s been saddled with hundreds of millions of dollars in costs to respond to the blaze and repair damaged infrastructure and property. The cities of Pasadena and Sierra Madre filed separate suits against Edison in Los Angeles County Superior Court.
Related: Edison Says Wildfire Fund May Shield Balance Sheet From LA Fire Claims
Edison is facing mounting scrutiny for the possible role its power lines may have played in the Eaton wildfire that burned more than 14,000 acres, destroyed about 9,400 structures and resulted in 17 deaths. The company already faces dozens of lawsuits alleging its equipment sparked the blaze in the Pasadena foothills that was fanned by high winds during an outbreak of wildfires that charred parts of the Los Angeles area.
Shares of Edison were up about .5% to $55.08 at 2:50 p.m. in New York. The company’s stock has tumbled almost 30% since the start of the Jan. 7 wildfire.
Related: California Governor Asks Congress for $40B for LA Wildfire Relief
Over the last decade, utility companies have been blamed for a series massive fires in western US states. It has become standard for local, state and federal government agencies to file lawsuits to recover damages to public property. Under California law, a utility can be held liable for property damage when its equipment ignites a fire even if it didn’t act negligently.
Edison said it was reviewing the lawsuit and will address it through the appropriate legal process. The company told state regulators last month that it was looking at the possibility that an idled transmission line near the origin of the Eaton Fire could have become energized and been involved with start of the wildfire.
Related: Insurers Have Now Paid Out Nearly $7B for LA Wildfires
Chief Executive Officer Pedro Pizarro told investors last week that he believe the utility acted responsibly around the Eaton Fire and that a state insurance fund should protect Edison’s balance sheet from damage claims.
LA County said it was seeking compensation for costs and losses including damaged infrastructure, recreational areas and parks, as well as cleanup and recovery efforts.
Topics
Lawsuits
Catastrophe
Natural Disasters
Wildfire
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