Facts

In 2008, the Freeway Complex Fire burned over 30,000 acres and affected 381 homes in North Orange County. A group of homeowners and subrogating insurers filed suit against the Yorba Linda Water District, alleging that property losses happened because fire hydrants went dry just as homes were threatened by a fire.

The suit argued that Yorba Linda Water District was liable for the damage under principles of inverse condemnation. When the fire threatened homes in the upper Hidden Hills area of Yorba Linda, three electrical pumps stopped working because of a wiring short and the emergency gas powered fire pump overheated. As a result, fire hydrants went dry and at least 19 homes were damaged or destroyed.

The Water District argued that because it did not start the fire, it could not be held liable.

The City of Yorba Linda was dismissed by all plaintiffs prior to the reference proceeding, was not held liable for anything, and was not part of the damage award.

Result

The plaintiffs were awarded more than $69 million.