Key facts
- A California judge tentatively denied a request to hold Southern California Edison (SCE) automatically liable for billions in property losses from the Eaton wildfire.
- The ruling came after investigators determined an out-of-service SCE transmission tower caused the January 2025 fire.
- The Eaton Fire caused 19 deaths and destroyed thousands of homes.
- SCE reached a subrogation settlement with an insurance claimant, agreeing to pay $0.52 for each dollar in claims paid, up to an agreed cap.
- The insurance claimant had paid policyholders approximately $500 million as of July 31.
A California judge has tentatively denied a request to automatically hold Southern California Edison (SCE), a unit of Edison International, liable for billions of dollars in property losses stemming from the January 2025 Eaton wildfire. The decision by Los Angeles County Superior Court Judge Laura Seigle came after Los Angeles County fire investigators concluded that electrical arcing from an out-of-service SCE transmission tower was the cause of the blaze.
The Eaton Fire resulted in 19 fatalities and the destruction of thousands of homes. Insurance companies had sought a ruling that would establish SCE's responsibility under a state law that imposes automatic liability on utilities when their equipment starts a fire.
SCE spokesperson David Eisenhauer stated that the company agrees with the tentative ruling and aims to support the Altadena community's recovery. The utility company is facing 998 lawsuits from individuals, businesses, government entities, and insurers related to the Eaton fire.
In a separate development, SCE entered into a subrogation settlement with an insurance claimant. Under this agreement, SCE will pay the claimant $0.52 for each dollar in claims paid, or to be paid, to policyholders, up to an agreed-upon cap. As of July 31, the claimant had paid its policyholders approximately $500 million. The settlement involved no admission of wrongdoing or liability by SCE, and the claimant agreed to release SCE and Edison International from all related claims.