We compiled a list of the “Top 10” most Frequently Asked Questions from fire victims during several town hall meetings:
Our neighbors have advised us to join a “mass tort” lawsuit against Southern California Edison. What is that?
A “mass tort” refers to litigation where a large number of individuals make individual claims arising from the same event or disaster. Unlike a class action, in which the damages and losses are all typical and common, in a mass tort, each injured plaintiff has unique damages. Individual client’s cases are called “third party” cases and seek to recover damages against the wrongdoer. Here, there is evidence that Southern California Edison’s equipment ignited the Eaton Fire and Edison did not utilize appropriate safety protocols. Our firms are pursing claims against Southern California Edison to hold it accountable for damages that are not covered by insurance. These are individual claims that are part of a mass tort.
How do I participate in a case against Southern California Edison for my losses in the Eaton fire?
First and foremost, you should interview, research, and retain skilled counsel who you like and trust and who have experience in utility-caused wildfire litigation. You want and deserve the best lawyers possible. The Walkup Melodia team, working in collaboration with the lawyers at Panish Shea and Ravipudi and Cotchett Pitre and McCarthy, include leaders of the litigation that successfully recovered billions of dollars for fire victims against PG&E and Southern California Edison as a result of the 2017 Wine Country Fires, the Butte County “Camp” fire, and the Ventura/ Santa Barbara Thomas fire. Once retained, the members of our team will file an individual lawsuit for you seeking recovery for your losses, including the value of your real property losses, rebuilding costs, personal property destruction, emotional distress as permitted by law and associated cost and expenses not covered by insurance. To the extent that attorney’s fees are recoverable under the laws of inverse condemnation, our team will sue for those costs as well.
If we retain you to represent us in a case against Southern California Edison, would it be a class action suit or is it more of an individual claim?
We are bringing individual actions against Southern California Edison on behalf of those who have lost their homes, possessions, and suffered injury as a result of the Eaton Fire. This is sometimes called a “mass tort” lawsuit, but it is very different from a class action lawsuit. In the cases we file, each individual and each household has its own unique case for damages.
Our policy says 150% extended coverage replacement. What does this mean assuming we have a $1 million based limit?
If the base limit is $1,000,000, then the 150% extended coverage would add an additional $500,000.
If you use your insurance benefit to purchase or build at a different location, what happens to the land at the site where the loss happened?
You continue to own the land where the fire occurred. Insurance does not cover the land of the damaged site.
We have 100% Additional Replacement Cost. Is this the same as Guaranteed Replacement Cost?
No, 100% Additional Replacement Cost is not Guaranteed Replacement Cost. The 100% extension of the Additional Replacement Cost policy will double the stated limits. Guaranteed would not have a cap.
How long do I have to purchase a property in another location using extended replacement cost payment?
Your insurance policy language will govern how long, however, in general, due to the catastrophic nature of these fires, you should be able to work out a mutually agreeable schedule with your insurer.
Do you recommend using a public adjuster in dealing with my fire insurer?
To the extent possible, it’s always good to work with your insurer directly to obtain all undisputed policy benefits. We anticipate insurers will pay out substantial sums due under your policy without dispute. You will need to cooperate and provide information and documentation to your carrier, but you will have to do this even if you hire a public adjuster. A public adjuster will charge you a percentage of every amount paid by the insurance company. If you work directly with your carrier to get at least the undisputed policy amounts, you will not need to pay
10% of the undisputed policy amounts to a public adjuster. If you find that your insurance carrier is being extremely difficult or you simply do not feel you are able to manage the process alone, there is nothing wrong with hiring a public adjuster. Keep in mind that the standard fee is 10%, but this is negotiable.
What if my insurance policy does not mention debris removal?
Debris removal should be covered under your policy. Each homeowner’s policy is different and you need to look to the specific terms of your policy. If your policy doesn’t have coverage for debris removal, it can be done at the expense of the EPA or State of California, whichever takes the lead.
If my home is a total loss, am I still obligated to pay my mortgage?
Your mortgage servicer should inform you of assistance programs that are available. You are contractually obligated to make your payments, so do everything you can to continue making them until you’ve come to a formal forbearance arrangement. If you don’t, you could be subject to late fees, your credit score can be negatively impacted, and worst of all, you could lose your home due to foreclosure.
For a forbearance agreement, you’ll need to work with your mortgage company. It might include paying a larger monthly payment for a certain number of months or restructuring the loan to a longer term. With such an agreement you may be able to pause your payments, not cancel them, meaning you’ll have to pay them back in the future. Deferment allows you to postpone payments until you are able to catch up on them. Contact your mortgage servicer regarding the terms of your loan and any modification to your mortgage.
Depending on the type of loan you have, you may be entitled to certain mortgage protections from governmental agencies in the event of a natural disaster, including the Federal Housing Administration (FHA) and the Department of Veterans Affairs Rural Development (RD).