Compensation Amount Announced by Edison for Affected Eaton Fire Victims
In an effort to avoid lengthy legal proceedings, Southern California Edison (SCE) has announced a compensation fund for victims of the devastating Eaton Fire. The fire, which destroyed more than 9,400 homes and structures in Altadena and killed at least 19 people, has left many families and businesses in a state of turmoil.
The proposed compensation program is designed as an alternative to conventional litigation in the courtroom. SCE has hired economists at Compass Lexecon, a consulting firm, to determine property loss payments, and consultants Kenneth Feinberg and Camille Biros to help create the program. Additionally, a nonprofit research group in Santa Monica, RAND, was hired to review the proposed property-loss settlements.
Under the draft of the compensation plan, each family of a deceased victim would receive $1.5 million for pain and suffering and other noneconomic damages. Each surviving spouse and other dependent of a deceased victim would receive an additional $500,000. Victims who lost their homes could receive up to $900,000 for rebuilding, while those whose homes were damaged would receive up to $10,000.
Payments would be reduced by amounts that victims had recovered through insurance settlements, according to the draft. However, victims don't need an attorney to apply for the compensation, and SCE will offer to add 10% to the damage amounts, excluding the direct claim premiums, to cover legal fees of those who have a lawyer.
The direct claim premiums, including $200,000 for families who lost their homes and $10,000 for those whose homes were damaged, are only available through SCE's program and not in litigation. Victims will get their compensation offers within nine months of applying, and SCE is offering a 'fast pay' option for financial settlements within 90 days.
SCE continues to increase its electricity rates. On Thursday, the California Public Utilities Commission voted to allow a 9.1% increase next month, with the average customer seeing an increase of more than $15 to their monthly bill. This increase comes as many families are already struggling to rebuild their lives after the Eaton Fire.
Private lawyers representing Eaton fire victims have urged caution, suggesting that similar programs in the past have resulted in lower payouts than families received through lawsuit settlements. However, Pedro Pizarro, chief executive of Edison International, stated that the program is designed to help victims focus on their recovery.
SCE will hold four community meetings to get public comments on the proposed compensation plan. The first community meeting is scheduled for Thursday at 7 p.m. Victims are encouraged to attend and share their thoughts on the program.
Settling these lawsuits is expected to take years, and SCE faces dozens of lawsuits filed by Eaton fire victims in court. The terms and conditions of the compensation program are completely transparent and voluntary, and SCE hopes that this program will provide some relief to the victims of the Eaton Fire as they work to rebuild their lives.
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