Lilly Lawrence, former owner of the “Malibu Castle,” and the California Dept. of Forestry and Fire Protection are suing a host of power, cellphone and insurance companies, as well as the City of Malibu, for damages related to the fire.
By Jimy Tallal / Special to The Malibu Times
In what may be the last remaining major court action over the 2007 Malibu Canyon Fire, a trial date of May 15 has been set for at least two remaining plaintiffs—Lilly F. Lawrence, owner of the “Malibu Castle” (aka Castle Kashan), and the California Department of Forestry & Fire Protection, also known as CAL Fire—suing a total of eight defendants.
The eight defendants being sued are identified in court documents as Southern California Edison Co., cellphone companies Sprint, NextG, AT&T and Verizon Wireless, the City of Malibu, Karl Susman and Marianne Susman (the last two affiliated with Susman Insurance Services). Malibu City Attorney Christi Hogin said her firm was not handling the case for the city, so she did not know what the city’s involvement in the litigation entailed.
The Oct. 21, 2007 Malibu Canyon Fire burned 4,521 acres from Piuma Road to the Malibu Knolls and Civic Center area, destroying eight structures and damaging 19, including Castle Kashan, the Malibu Presbyterian Church and several businesses and classrooms. During the fire, the Malibu Civic Center and surrounding areas were evacuated for three days, three firefighters were injured and widespread power outages occurred throughout much of the city.
The fire started when powerful Santa Ana wind gusts snapped off pieces of three wooden utility poles on Piuma Road, and live electrical wires fell to the ground and ignited the surrounding brush. A state Public Utilities Commission investigation later determined that at least one of the poles broke in the wind because it was overloaded with electrical and telecommunications wires and equipment, although Southern California Edison disputed that conclusion.
Civil legal action regarding the fire was initiated on March 21, 2008, after which the Los Angeles County Superior Court consolidated dozens of separate lawsuits into one big case with the “Master Complaint” taking effect in 2009. The consolidated litigation by homeowners, property insurers and state agencies against the electric company and telecommunications companies and others has been ongoing.
In a case that will surely result in a new wing being added to the Stanley Mosk Courthouse just to house all the documents, there have been as many as 29 parties to the lawsuit, 360 motions or other actions filed, and 56 court proceedings of various kinds.
The California Public Utilities Commission’s Consumer Protection and Safety Division claimed in a report last October that Edison destroyed evidence and misled investigators about the cause of the blaze. Public utility investigators recommended $99 million in fines against Edison and the four telecommunication companies for allegedly overloading the power poles that collapsed and sparked the wildfire. Edison told the Los Angeles Times that the proposed fine was “excessive” and not supported by the evidence.
Sprint, AT&T and Verizon Wireless, which are also named in the May 15 civil trial, agreed in February to pay $12 million to settle with the state. Edison and NextG have still not settled with the state and together face approximately $75 million in fines if found guilty of the state’s accusations.
On Dec. 5, all or parts of the claims of nine of the insurance companies involved in the Malibu Canyon Fire lawsuit were dismissed, presumably because they agreed to settle out of court or decided to arbirtrate separately.
Edison is apparently intending to begin the May 15 civil lawsuit trial with guns blazing. The law firm representing the company, Murchison & Cumming, LLP of Los Angeles, called in 39 individuals for depositions over April 12 and 13. Among those receiving notices of deposition were three former Malibu City Councilmembers and members of the news media and law enforcement.
Lilly Lawrence told The Malibu Times last week that for legal reasons she would be unable to comment on the lawsuit or any future plans she may have for the castle. When her Castle Kashan burned down in 2007, it had been listed for sale at $17 million. The fire not only rendered the residence a complete loss, but various valuable paintings and important collections, including a roomful of Elvis Presley memorabilia, also went up in smoke. Considering that the lost memorabilia and art is estimated itself to be very valuable, the damages to Lawrence could well exceed the $17 million for the loss of her residence.
The chief legal counsel for CAL Fire in Sacramento did not return phone calls, but the department’s online reports indicate nearly $6 million was spent on “fire suppression” for the 2007 Malibu Canyon Fire, which included as many as 1,765 fire personnel on site at the peak of the blaze.
Additionally, Piuma Road resident Ed Meyer said he is still considering filing suit after the big ones are settled. The power poles that collapsed were directly below his property, which he said was first to be impacted by the fire. Meyer said after the fire Edison quickly came out and cleaned things up before state investigators arrived, but Meyer feels the company’s efforts were window dressing.
“Edison is a giant entity that just doesn’t care,” Meyer told The Malibu Times in a telephone interview over the weekend.
Since the fire, the electric company has replaced the three fallen wooden poles with galvanized ones, but “they should do a lot more than that,” Meyer said. In addition, he said Edison never does as much brush clearance around the poles as the law requires. Meyer said he reported problems with drooping lines even before the fire, and nothing was ever done. He’s convinced “there are a lot of risks that still exist.”