The wildfires in the Texas Panhandle are already the largest fire in state history, resulting in two deceased, burning more than 1,059,570 acres, countless livestock loss, and over 500 structures damaged. The fire has still not been completely contained at the time of writing this article – and the damages are expected to increase. This is the crucial moment for insurance companies to be proactive in the preparation of their subrogation claims.
Unmasking the Culprit: Xcel Energy Downed Power Lines Ignite Texas Wildfires
Up to this point, the cause of these wildfires has been unknown, but recent investigations have revealed that downed power lines owned by Xcel Energy are believed to be the cause of the wildfires, opening avenues for subrogation recoveries. Xcel Energy put out a statement acknowledging the incident but denying any liability, “Xcel Energy has been cooperating with the investigations into the wildfires and has been conducting its own review. . .Based on currently available information, Xcel Energy acknowledges that its facilities appear to have been involved in an ignition of the Smokehouse Creek fire.” Although the investigation is still early – this revelation provides a signal for insurance companies to begin preparing their claims for subrogation pursuit.
Learning from Past Subrogation Success
Drawing parallels from recent subrogation successes, such as the Marshall, Colorado wildfire case (link HERE), the Northern California wildfires (link HERE), and the Maui wildfires (link HERE), it is evident that a thorough and timely investigation is paramount to successful subrogation of wildfire claims. Remember, a subrogating carrier has the burden of proof in any claim brought against a responsible tortfeasor. Subrogation investigation and litigation is complex, requiring a timely and meticulous approach to gather evidence to build a sufficient case against the responsible parties and meet this burden of proof.
Preparing for Subrogation
Insurance companies are urged to act promptly, initiating the subrogation process to recover losses and assist their policyholders in recovering their out-of-pocket deductibles. An important and necessary first step is to place potentially liable parties on notice of your subrogation interests. But this must be followed up with prompt and aggressive investigation for any wildfire subrogation effort.
As a leading subrogation law firm, Matthiesen, Wickert & Lehrer, S.C. is ready to guide insurance companies through this process of investigation and preparation for litigating these wildfire claims. Our experienced team of subrogation professionals are familiar with the nuances of such cases and are ready to provide the legal support necessary to navigate insurance carriers through the complexities of subrogation litigation.
If you have any questions about the Texas wildfire litigation, or wish to discuss possible subrogation of these losses, please contact Lee Wickert at leewickert@mwl-law.com.
Xcel Energy says it appeared to have role in igniting largest Texas wildfire | AP News
