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Before determining how residents might be compensated for the fires in Los Angeles, let’s first determine who might be liable for these destructive fires.
Who Might Be Liable for The Los Angeles Fires?
Liability for the fires that occurred in Los Angeles can be attributed to various parties depending on the circumstances surrounding each fire.
In the case of the Mandeville Canyon Fire of October 1978, the City of Los Angeles and its Department of Water and Power were found liable under the theory of inverse condemnation for damages caused by sparks from their electrical power transmission lines. However, the jury did not find them negligent. Aetna Life & Casualty Co. v. City of L.A., 170 Cal. App. 3d 865.
Under California law, any person who negligently sets a fire, allows a fire to be set, or allows a fire kindled or attended by them to escape onto any public or private property is liable for the fire suppression costs and other related expenses. This includes both individuals and corporations, as established by § 13009. Liability for fire-fighting expenses; Action to recover costs and Department of Forestry & Fire Protection v. Lawrence Livermore National Security, LLC, 239 Cal. App. 4th 1060. The liability extends to those who fail to correct fire hazards after being notified by a public agency.
Corporations can also be held vicariously liable for the actions of their employees under the doctrine of “respondeat superior.” This was affirmed in the case of Presbyterian Camp & Conference Centers, Inc. v. Superior Court, 12 Cal. 5th 493, where the court held that § 13009 and § 13009.1 incorporate common-law theories of vicarious liability.
In another instance, the U.S. Department of Agriculture Forest Service concluded that the cause of a fire was the Los Angeles Department of Water and Power’s electrical transmission lines, indicating potential liability for the department. Southern California Edison Co. v. Superior Court, 102 Cal. App. 5th 573.
Therefore, liability for fires in Los Angeles can be attributed to individuals, corporations, and public entities depending on the specific facts and circumstances of each case, including negligence and failure to address known fire hazards
Sources of Compensation
Now that we know who might be held liable for these fires, let’s examine how these residents might be compensated.
Property Tax Relief
Residents whose houses were destroyed by the fires in Los Angeles may be able to receive compensation for their losses through various means. Under California law, property owners whose homes are substantially damaged or destroyed by a wildfire or natural disaster may be eligible for property tax relief. This relief is available to those who reconstruct their property on the same site or purchase a replacement property. Cal Rev & Tax Code §§ 70.5 and 69.6.
Additionally, the California Constitution provides that victims of a wildfire or natural disaster, defined as owners of a primary residence that has been substantially damaged, can receive certain tax benefits. Cal Const, Art. XIII A § 2.1.
Insurance Claims
Furthermore, homeowners with fire insurance policies may be entitled to compensation from their insurance carriers. Under § 2051, the measure of indemnity in fire insurance is the expense to the insured of replacing the lost or injured property, computed as of the time of the fire. If the insurance policy includes replacement cost coverage, the insured can recover the cost to repair, rebuild, or replace the insured structure, even if they choose to rebuild at a new location.
Negligent Parties
In cases where the fire was caused by the negligence of another party, such as a utility company or other entity, homeowners may pursue legal action to recover damages. For example, in cases like Willard v. Valley Gas & Fuel Co., 171 Cal. 9, homeowners successfully recovered damages for the destruction of their home due to the negligence of a gas corporation.
Similarly, in Marshall v. Dep’t of Water & Power, 219 Cal. App. 3d 1124, property owners were awarded damages for a fire caused by downed power lines.
Therefore, residents whose houses were destroyed by fires in Los Angeles have multiple avenues to seek compensation, including property tax relief, insurance claims, and potential legal actions against negligent parties.
