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Wildfire Litigation: Homeowners, San Diego Oppose SDG&E Request To “Depublish” Authority Concerning Damages

Homeowners and local government moved switfly to oppose a January 15, 2010 request by San Diego Gas & Electric Company (“SDG&E”) and by several tree trimming contractors to “depublish” appellate legal authority concerning the amount property owners may recover in tort when their property is damaged by fire.

Homeowners and local governmental entities allege SDG&E’s faulty powerlines started the October 2007 wildfires. Homeowners allege certain tree contractors were on the scene shortly after the fires, destroying evidence. SDG&E and the tree contractors wrote to the Chief Justice of the California Supreme Court, asking the Court to “depublish” sections of a recent legal decision.

The decision, Kelly v. CB&I Constructors, Inc., 179 Cal. App. 4th 442, says property owners may recoup the cost to restore their property to its original condition. Kelly says homeowners “may recover the restoration costs even if such costs exceed the diminution in value.”

In its letter to the California Supreme Court, SDG&E complained about the substantial “impact of the wildfire litigation on SDG&E,” and complained SDG&E’s insurance costs have “skyrockted.” Because of the increased costs, SDG&E argues Kelly should be depublished.

In their opposition letter (pdf), thousands of homeowners, together with the City of San Diego and the County of San Diego, note SDG&E agreed to a $17 million fine to resolve charges SDG&E concealed evidence from fire investigators.

The opposition letter wryly observes the October 2007 wildfires had more than a “substantial” impact on victims’ insurance costs. The October 2007 fires devastated San Diego families, resulting in death, people lost everything in the fires, and San Diego citizens lived in sheds and horse trailers for months following the fires.

Homeowners argue SDG&E and the tree contractors failed to address the relevant publication criteria in their decertification request. After explaining in detail why Kelly was properly decided by the California appellate court, homeowners made plain the true purpose behind SDG&E’s and the tree contractors’ request:

 

The October 2007 Wildfire Litigation currently is pending in California state court, San Diego.