Southern California Edison has indicated in court it is not yet willing to begin talks to settle dozens of lawsuits in the monstrous Eaton fire — a move that some say is designed to pressure victims to participate in the utility’s own compensation plan.
An Edison attorney refused this week to calendar mediation sessions for more than 100 lawsuits that blame SCE for the fire that destroyed large parts of Altadena and killed 19 people.
Edison is launching its own program to privately compensate victims who forfeit their right to sue. Victims’ attorneys allege those payoffs would come at reduced rates.
Michael Artinian, one of the lawyers suing Edison, said the company is trying to push its own plan and stall the litigation.
“(Edison’s) motive is clear, to keep the leverage of time over the plaintiffs, the poor, older and weaker, trying to pick off their cases … to exert the maximum of pressure on the people who are anxious to settle,” said Michael Artinian, one of the lawyers suing Edison.
SCE spokesperson Diane Castro responded with a terse statement: “Southern California Edison will not be distracted from its focus of first serving those impacted.”
Under a draft circulated by SCE, rates for its compensation plan would be based on square footage and extent of damage to affected homes. For instance, owner/occupants of a destroyed 1,500-square-foot home could collect $900,000 in rebuilding compensation, plus $200,000 for working with the program and $100,000 per adult for noneconomic damages.
Also under the draft plan, each death would bring $1.5 million for pain and suffering, plus $500,000 for each surviving spouse and eligible dependent. Another $5 million would be paid as a premium for going directly through the Edison fund.
While the cause of the fire remains under state investigation, Edison officials acknowledge that the leading theory is that a long-dormant tower became reenergized and sparked the blaze. Edison has not admitted to starting the fire, but launched the compensation program in July, saying it would allow victims a quicker financial resolution than litigation.
Edison has been holding workshops for fire victims to get information on the compensation program and to offer input on the draft payment rates. Edison is the sole arbiter in its compensation program, with no third-party mediator.
Doug Boxer, another attorney representing fire victims, called Edison’s alleged strategy of not participating in court mediation “cynical and gross.”
“What they’re saying is, ‘Hey fire victims, you’re going to get your day in court, but it’s going to be as far away as we can push it,’ ” Boxer said. “What they’ve offered is a ‘take-it-or-leave-it’ program.”
He said Edison’s court strategy is designed to make people feel hopeless, to feel they have no choice but to accept the utility’s offer.
“Don’t listen to the company that burned your house down while telling you how benevolent they’re being,” Boxer advised victims.
A trial for the first set of lawsuits is set for January 2027.
If found liable for damages, Edison would be responsible for the first $1 billion and could then tap the $21 billion state Wildfire Fund for the rest. However, state officials are concerned that the Eaton fire could deplete the entire fund, created to keep Edison and two other privately owned utilities from going bankrupt if found liable for a fire. State officials are considering ways to replenish the fund.