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Government,
Environmental & Energy

Nov. 7, 2019

As California burns, inverse condemnation and cost recovery issues dominate California’s electric utilities’ legal framework

One of the main reasons inverse condemnation has received so much attention is because the majority of California’s electrical supply is provided by private, investor-owned utilities — not public agencies.

Bradford B. Kuhn

Partner and Chair of the Eminent Domain & Inverse Condemnation Group
Nossaman LLP

Phone: (949) 833-7800

Email: bkuhn@nossaman.com

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Willis Hon

Associate
Nossaman LLP

Phone: 415-398-3600

Email: whon@nossaman.com

Willis is an associate in the firm's Water Practice Group. He represents clients before the California Public Utilities Commission and advises clients on a range of matters, including utility regulation, inverse condemnation, public entity governance, and environmental law.

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As California burns, inverse condemnation and cost recovery issues dominate California’s electric utilities’ legal framework
A helicopter dropped water on a fire in Vallejo, on Sunday, Oct. 27, 2019, with power lines seen in the background. One of the reasons the concept inverse condemnation has been difficult in the context of California's wildfires is that the majority of California's electrical supply is provided by private, investor-owned utilities -- not public agencies. (New York Times News Service)

In what appears to be the new “normal,” California is off to another unfortunate, devastating and destructive start to wildfire season. From the legal perspective, much of the focus has been on potential liability of electrical utilities throughout the state, and in particular under the doctrine of “inverse condemnation.” Under this theory, a public entity is generally liable when private property is damaged for a public use, regardless of foreseeability or fault. So,...

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