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The devastating Eaton Fire tore through communities in Altadena and Pasadena, leaving 19 lives lost, nearly 9,500 structures destroyed, and thousands of businesses disrupted. In response, Southern California Edison (SCE) has announced a new compensation program designed to provide direct payments to survivors.

While the promise of fast relief may sound appealing, victims should be cautious. Programs like this may come with hidden trade-offs that may impact their ability to fully recover what they lost. 

What is the SCE Eaton Fire Compensation Program

SCE’s newly announced Wildfire Recovery Compensation Program is intended to streamline payments for victims of the Eaton Fire. The fire claimed lives, destroyed thousands of structures, and caused widespread smoke and ash damage.

 According to SCE, the program will provide direct compensation for:

• Home and business destruction
• Partial structural damage
• Business interruption
• Smoke and ash damage
• Injuries and fatalities

To develop the program, SCE has retained experts who previously worked on large-scale compensation funds, including those for 9/11 victims. The company has emphasized that the fund will be voluntary, with no application fees or administrative costs.

However, critical details remain missing. The lack of clarity makes it difficult for victims to determine whether joining the program is truly in their best interests.

Potential Issues That May Arise with the SCE Fire Compensation Program

Although SCE is presenting this program as a way to help survivors, the vagueness surrounding its structure raises serious concerns. Victims should be aware of the following potential issues:

• Loss of the right to sue: Many utility compensation programs require participants to sign a waiver, preventing them from pursuing legal claims against the company in the future.
• Significantly lower payouts: In past wildfire funds, victims received far less than what they may have recovered through litigation. Payments often undervalue destroyed property, long-term losses, and personal hardship.
• Release of liability: Accepting compensation may mean releasing SCE from responsibility for the fire, even if future investigations reveal negligence or misconduct.
• Dismissal of existing lawsuits: If you have already filed a lawsuit, participation in the program could require you to withdraw your case.

Another major concern involves the timing of waivers. SCE has not made it clear at what stage victims would be required to give up their litigation rights. Will rights be waived as soon as someone applies? Will the waiver occur only if the applicant accepts a compensation offer? Or will there be a condition process that allows victims to review an offer before making a binding decision? Without clarity on this issue, survivors risk forfeiting important legal protections before they fully understand what they stand to gain, or lose, from the program.

Even if participants navigate these issues carefully, it’s important to understand that the compensation program may still fall short in covering the full scope of losses.

What Does the SCE Compensation Program Not Cover?

Even if SCE’s fund provides payments, it is unlikely to account for the full scope of harm caused by the Eaton Fire. Compensation programs like this rarely cover damages such as:

• Emotional distress and trauma
• Punitive damages designed to hold wrongdoers accountable
• Loss of use and enjoyment of property
• Diminished property values
• Additional economic losses outside the program’s scope

Victims must also be aware of California’s prohibition on “double recovery.” This means you cannot be paid twice for the same loss. For example, if the SCE fund pays you for your destroyed home, you cannot later sue for that same property damage. However, litigation could potentially still allow you to pursue damages not addressed by the program.

Consult with Singleton Schreiber

The Eaton Fire left families and businesses facing unimaginable hardship. While SCE’s compensation program may offer a path to recovery for some, it also carries serious risks. Once you accept payment and waive your rights, that decision is likely permanent.

Before making a potentially irreversible choice, consult with an experienced wildfire attorney. At Singleton Schreiber, we are dedicated to helping fire survivors understand their options, protect their rights, and pursue the full compensation they deserve.

Contact us today for a free consultation to discuss how the SCE program may affect your claim and whether pursuing litigation is the better path forward.