Warning to Wildfire Survivors: Why SCE’s New Program Could Shortchange You
By Matthew P. French
Seven months have passed since the destructive and deadly firestorm that left the picturesque Altadena and surrounding neighborhoods in ash and rubble.
Southern California Edison (SCE) faces hundreds (and likely thousands) of mass tort lawsuits for the alleged role of its faulty power equipment in sparking the fire.
Now, in an effort to circumvent litigation, the company is launching a “compensation program” for victims. In a press release, SCE’s parent company, Edison International, announced, “SCE will offer an expedited process to pay and resolve claims fairly and promptly….This allows the community to focus more on recovery instead of lengthy, expensive litigation.”
But is the plan actually good for victims?
Understanding the Eaton Fire’s Massive Toll
In less than a day, the 14,000-acre blaze tore through the community, destroying more than 9,400 structures. Over a third of these were homes — and in a neighborhood long known for Black homeownership, nearly half of those homes were lost.
For the houses that remain, many families still cannot return. Smoke, ash, and toxic residues have left them unsafe, compounding the displacement.
The fire didn’t just erase buildings; it tore at the very fabric of a vibrant community, stripping away businesses, livelihoods, cultural sites, schools, and houses of worship. Most tragically, it also claimed 19 lives.
Moreover, a new study, out this week, argues that the real death toll is likely over 400, when fire-related fatalities, such as those due to poor air quality and disruption of crucial health services, are properly factored in from throughout the affected region.
Further compounding the hardship, around 75% of Eaton Fire victims report that they were uninsured or underinsured due to California’s mounting insurance crisis.
Many survivors, having received only a fraction of the compensation they need, are still battling insurers for fair treatment, facing financial ruin as they struggle to recover and rebuild.
Fighting for the Rights of Eaton Fire Victims – Holding Southern California Edison Accountable
The Kabateck Eaton Fire Litigation Team represents numerous victims of the Eaton Fire. Our experienced and compassionate attorneys understand that a wildfire disaster of this proportion upends every area of ones life. We are committed to fighting for full compensation and justice for survivors, as well as accountability for those responsible.
In the days following the fire, evidence emerged that outdated power infrastructure operated by SCE likely played a central role in causing the Eaton Fire. Video footage, including one taken by a security camera at a Pasadena gas station, shows an electrical tower sparking and arcing moments before the fire exploded below. Investigators believe the power lines, idle since the early 1970s, reenergized through a process called induction, igniting the blaze.
Severe drought, low humidity, and nearly unprecedented Santa Ana winds combined with dense and extremely dry vegetation, steep terrain, and an urban-wildland interface — created prime conditions for fire. As climate change increases the frequency and severity of wildfires, utility companies face an urgent need to adapt and update equipment and safety measures.
For decades, aging SCE lines and equipment have run through vulnerable Southern California landscapes.
Days before the fire, the National Weather Service issued an enhanced red-flag warning: Particularly Dangerous Situation (PDS).
Multiple mass tort lawsuits contend that SCE’s negligence helped set the stage for catastrophe well before the start of the fire: not only had SCE failed to maintain and update deteriorating equipment properly, but also, despite ample notice, the company failed to take adequate precautions in advance of extremely hazardous conditions, such as deenergizing transmission lines.
Is the “Wildfire Recovery Compensation Program” good for victims?
In July, SCE announced a “Wildfire Recovery Compensation Program.” At this point in time we are advising our clients NOT to participate in this plan.
What you need to know:
First, plan details have not been announced yet so it is not possible to make a full assessment of risks and benefits of such a plan. However, past programs similar to the one Edison has announced are a common tactic used by utility companies to skirt lawsuits, create delays, and minimize payouts — resulting in too little, too late for victims.
First, it is our understanding at this time is that the SCE program will not include compensation for all types of damages that a victim would be legally entitled to in a lawsuit (if SCE is found liable). To date, the program announcement omits mention of key damages such as emotional distress, loss of use, and inconvenience.
Historically, these programs have given victims a “take-it-or-leave-it” offer, often amounting to pennies on the dollar compared to damages obtained through litigation.
Utility companies also use these programs to drag out the litigation process — delaying setting a trial date in the pending lawsuit and/or delaying the resolution of cases by settlement.
For example, after the Dixie Fire, PG&E offered a similar program and compensation fund; survivors of that disaster ultimately received inadequate compensation that took longer than anticipated, leaving people in the lurch as they tried to move on with their lives.
It’s also essential to understand that you cannot accept compensation in both the lawsuit and Edison’s program. If you accept an offer through SCE’s Wildfire Recovery Compensation Program, you would waive your right to sue — or continue your suit against — the utility company.
In short, based on what we currently know, we believe that participating in Edison’s program is not in our clients’ best interests and that the program is simply an attempt to trick victims into settling their claims for far less than they’re worth, while also hindering pending lawsuits. We will keep an eye on the program as it develops and adjust our advice accordingly.
The KBK team is moving forward with timely legal filings. We’re not intimidated by powerful corporations — we’re focused on building the strongest possible case for each of our clients, helping you navigate complex legal processes as you recover, proving all your losses, and getting fair compensation, not just quick cash.
If you have any questions about SCE’s program or want to discuss your options, please contact our knowledgeable and caring attorneys at (213) 217-5000 or eatonfire@kbklawyers.com.