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CONFIDENTIAL

Dec. 23, 1995

Real Property
Negligence
Fire

Confidential

Settlement –  $8,000,000

Court

San Diego Superior


Attorneys

Plaintiff

Shawn E. Caine

E. Robert Miller

Andrew A. Kurz

James Stevens

Peter L. Dean

George V. Paluso

Randall B. Christison


Defendant

C. Larry Davis

Eric L. Jones


Experts

Plaintiff

Larry R. Carlson
(technical)

David G. Howitt
(technical)

Michael T. Mahoney
(technical)

Robert W. Armstrong II
(Demler, Armstrong & Rowland LLP) (technical)

Robert Swanson
(technical)

Larry Sproul
(technical)

Lester Hendrickson
(technical)

Defendant

T.C. Cheng
(technical)

Harry K. Hasagawa
(technical)

Carlos Fernandez-Pello
(technical)

Facts

On October 27, 1993, a wild fire occurred in San Diego county, burning approximately 20,000 acres of land, including property owned by 78 plaintiffs. The fire lasted 6 days; burned down 18 homes; killed over 200 rare-exotic birds; destroyed avocado ranch land business structures; and allegedly caused one death. There were 8 a number of separate actions filed and consolidated in this matter. Property damage and fire suppression subrogation actions were brought for damages arising out of the fire.

Settlement Discussions

The insurance subrogation case settled for $536,308 (5 insurance company plaintiffs). There were numerous settlement discussions including a settlement conference before the court, all of which were unsuccessful in resolving the case. Three avocado farm owner - plaintiffs settled for $749,000. All of the lawsuits settled with the defendant utility company after three weeks of trial at the close of evidence (before closing arguments). The remaining plaintiffs settled the liability portion of the case and agreed to accept seventy percent (70%) of any damages awarded to them in the damages trials. The damages trials are scheduled to commence in March, 1996.

Damages

Between $8,000,000 to $15,000,000 (property damage for the combined fire suppression cases including damages for personal property, homes destroyed, structures burned, loss of income, business interruption, loss of animals, and emotional distress). The costs for fire suppression constituted $2,600,000 of the damages claimed.

Injuries

Between $8,000,000 to $15,000,000 (property damage)

Other Information

The trial resulted in a defense verdict for the tree company (11-1 poll).


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