Los Angeles Fires Update

CAOC shares the sorrows of those in Los Angeles affected by the 2025 wildfires and we appreciate the vulnerability of the fire victims; now is the time to protect them as they seek recovery.

CAOC continues to partner with the Legislature as it evaluates policy choices for these Californians. (1) CAOC sponsored legislation, signed by the Governor, to address attorney ethics and attorney advertising, (2) We would like to provide information on current law related to fires. (3) We would like to be a resource to your office as fire-related policy legislation proceeds.

Advertising and Ethics
Consumer Attorneys of California is committed to improving ethics in the practice of law and ensuring that bad practices in attorney advertising be addressed legislatively. It is crucial that the legal system maintains its integrity and works ethically for everyone. Some advertising from both attorney and non-attorney firms barrage consumers on social media and make misleading claims about recovery. Consumer Attorneys recognize that the rights of civil litigants to seek justice from negligent parties is paramount; however, we believe changes must be enacted to stop abuse and protect consumers.

Liability for Wildfires
We understand that there is renewed discussion about the role liability plays in holding investor-owned utilities (IOUs) responsible for damage. After the 2019 North Bay fires, PG&E pushed for legislation to limit victims’ legal rights, particularly as related to a legal theory known as inverse condemnation. Following the 2019 northern California wildfires, CAOC joined with public entities, victims’ groups and insurers to oppose changes to this law. Inverse condemnation is a no-fault liability theory based on the constitution. Because utilities are granted the power of eminent domain, they are responsible for property damage that occurs from their equipment. The utilities’ equipment MUST BE a substantial cause of the fire for inverse condemnation liability to apply.

In 2019, Governor Gavin Newsom signed AB 1054 and AB 111, which created a broad set of reforms and programs related to utility-caused wildfires in California, including establishing the California Wildfire Fund, often referred to as the AB 1054 Fund.

The fund is specifically established to reimburse utilities that are responsible for property damage caused by their equipment but only if they do not act negligently.

The utilities can collect from the fund after paying out $1 billion in damages. If the PUC determines the utility acted negligently, willfully or recklessly, they must return any moneys received back to the fund. Three utilities paid into the fund: San Diego Gas & Electric, Southern California Edison and PG&E. https://www.cawildfirefund.com/