Edison International CEO Pedro Pizarro announced that the utility will offer swift compensation to victims of the Eaton Fire, which destroyed over 6,000 homes and claimed 19 lives. The fire, which started on January 7, 2025, in Eaton Canyon, is believed to have been ignited by a century-old transmission line that reenergized through induction. This process occurs when magnetic fields from a nearby live line electrify a dormant line.
Pizarro stated that the first settlement offers will reach applicants by the end of November. To receive compensation, victims must agree not to pursue legal action against Edison. So far, 580 people have applied for the program. Those who accept the offers will be paid within 30 days. According to Los Angeles Times, Edison expects to be reimbursed by a state wildfire fund designed to prevent utility bankruptcies.
The fire has led to numerous lawsuits, with claims that Southern California Edison (SCE) failed to maintain its equipment properly. Wisner Baum reports that these lawsuits allege negligence, inverse condemnation, and other legal claims. California’s unique inverse condemnation rule holds utilities strictly liable for wildfire damages caused by their equipment, regardless of negligence.
The investigation into the fire’s cause is ongoing, with the Los Angeles County Fire Department and Cal Fire involved. Edison is cooperating with the investigation and working with lawyers for victims who have filed lawsuits to gather detailed information.
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