Dave Fox and James P. Frantz on Navigating Recovery: Legal Insights for Rebuilding Southern California

Los Angeles Times

10-02-2025

A Conversation with the Experts: Legal Strategies for Rebuilding After Disaster. Produced by LA Times Studios in partnership with Fox Law APC and Frantz Law Group.
In the wake of January's devastating fires, Southern California faces the immense challenge of rebuilding its homes, businesses and communities. To help those affected navigate this complex process, we turned to two legal experts to discuss several critical considerations for those working to make themselves whole again, from insurance claims and contract negotiations to zoning regulations and government aid. Whether you're a homeowner, business owner or investor, the following information can provide essential guidance on securing fair settlements, avoiding legal pitfalls and ensuring a smooth path to recovery.
Join us for this series of insightful discussions on need-to-know legal advice that can help rebuild and strengthen our city.
Q: How can people recover from the emotional impact of the fires?
James P. Frantz, Trial Attorney and CEO, Frantz Law Group: Losing your home in a fire causes a great deal of emotional distress. Not only have you lost your home, but often your community as well. With these recent fires in particular, entire communities were destroyed including schools, churches, synagogues and community centers. You should not underestimate the impact of evacuation, relocation and rebuilding after a fire - it is important to seek professional help if you are experiencing trauma as a result. As a law firm, we work to secure compensation for our clients for the economic damages they have suffered including losing their homes while also seeking compensation for the emotional impact on their family so they have the resources to get the help they need.
Q: What are law firms and accounting firms doing to help businesses and individuals in need?
Dave Fox, Founder, Fox Law APC: Lawyers can play a critical role after a wildfire. They can assist those needing help with insurance issues, can help provide information on how to access critical government funds, and seasoned wildfire litigators can help individuals recover the major underinsured and uninsured losses that always arise after a fire. This particularly occurs in construction costs as they spike extremely high. We expect that to be the case in Altadena and Pacific Palisades, given the thousands of homes that need to be rebuilt. Once the dust settles from the immediate aftermath of a fire, experienced wildfire litigators also represent clients in court proceedings against third parties (typically utility companies) in order to assist communities in recovering money for the underinsured and uninsured losses they have incurred. For those who lost homes, this underinsured range can be from hundreds of thousands of dollars to several million dollars. Litigation against utility companies is quite technical and something our firm, Fox Law, has specialized in for more than a decade. We've helped more than 3,500 clients recover collectively more than $1.2 billion from utility company defendants.
Frantz: Frantz Law Group has extensive experience in assisting with wildfire recovery. We hire liability experts to determine where the fires originated and who caused the fires. Unfortunately, we often find that utilities who failed to maintain their equipment are at fault. When that happens, we go to battle to hold the utilities accountable for the people whose lives have been destroyed through negligence. We have helped more than 7,800 fire victims obtain the necessary compensation to rebuild their homes and their lives. We offer free consultations and guidance through the recovery process. We work on a contingency fee basis, meaning we do not bill you for our time and you do not owe us anything out-of-pocket. Our fee is only from any recovery we obtain for you. We do not take a fee on funds you receive from your insurance company. We often find that residents and businesses do not have adequate insurance coverage to cover their losses; so, we seek to recover that shortfall from those responsible for the fire.
Q: Why would an insured homeowner need a lawyer? Isn't insurance supposed to cover their losses?
Fox: Even if someone has homeowner's insurance, it's near universal that insurance is inadequate to fully compensate for losses after a wildfire. First, the price to rebuild the home skyrockets after a major wildfire as the normal supply and demand drastically alters. Sadly, we have seen that nearly everyone who lost homes will need, at a minimum, hundreds of thousands of dollars more to rebuild than what their insurance will provide. Moreover, many policies exclude or place significant limits on personal property coverage. They also severely restrict recovery for replacing landscaping, trees, shrubs and irrigation systems, among other things. Insurers can provide inadequate coverage for additional living expenses (ALE) or loss of use (LOU). Perhaps most importantly, insurance policies do not cover the pain and suffering fire victims endure while evacuating and the trauma associated with losing a home. These uninsured/underinsured losses are all recoverable in litigation and can be quite sizable in most cases. These are the types of damages that our firm, Fox Law, pursues from the utility on behalf of our clients.
Q: How can liability issues be addressed for utilities and developers in wildfire-prone areas?
Frantz: It is critical that utilities create and implement wildfire mitigation plans. Unfortunately, we see the same utilities start fires over and over. Some utilities, such as San Diego Gas & Electric, have implemented a comprehensive wildfire risk mitigation program which includes replacing wood poles with fire-resistant steel poles, building a sophisticated weather monitoring network and fire and weather forecast models, and strategic undergrounding. However, utilities continue to start fires damaging thousands of California residents. Our law firm seeks to hold these utilities accountable and ensure that they provide appropriate compensation to allow people to recover and to hopefully better maintain their systems so that no future fires occur.
Fox: There are systemic liability issues that arise in cases of utility-caused wildfires. We have seen, time and again, utility failure to properly maintain equipment and infrastructure. These issues are addressed on a per-fire basis through litigation, which can and (in some cases) do result in changes that positively impact a utility's fire mitigation strategy. One example of this was when SDG&E made significant changes to its systems after the 2007 San Diego wildfires and subsequent litigation. There has not been another major fire event in San Diego since then like those we have seen in Los Angeles and Northern California. On the other hand, litigation is limited. Real change must be driven by legislators, regulators, and frankly, willing utility participants. We are currently working hand-in-hand with a member of Congress to try and address some of the larger underlying issues that litigation alone cannot tackle.
Q: What do I do if I am underinsured?
Frantz: Most homeowners who lose their homes to a fire find that they are underinsured. Many California wildfires are caused by utilities whose equipment came into contact with dry brush or was otherwise not well maintained. A firm that specializes in wildfire litigation will have retained experts who investigate the origin and cause of a wildfire to explore whether a utility is responsible for the fire. If a utility is found to be responsible, a lawsuit can help you recover the additional compensation necessary to recover and rebuild your life. Make sure you confirm that any law firm you are considering has the necessary experience to maximize your recovery.
Q: What are the legal and financial implications of selling your property, rather than rebuilding, after a utility-caused wildfire?
Fox: What to do with your property after a wildfire is a highly personal decision, but one that should be made with legal implications in mind, if possible. Choosing to sell your property vs. rebuilding can significantly decrease a recovery through litigation. There are two ways of calculating fire damages to real property: 1) The diminution in fair market value (DIV), or 2) the cost to cure or repair the property. The DIV is the difference between what a neutral third party would pay to buy the property the day before the fire versus immediately after the fire. The cost to cure/repair is the amount it would cost to repair the fire damage and restore your property to its pre-fire condition (e.g., cost to rebuild, repair damage to structures, remediate erosion, and/or replace trees and landscaping). In nearly all cases, the DIV is substantially less than the cost to cure. If you have specific questions about the legal implications of your case, you should discuss those in a privileged conversation with your lawyer. We are happy to do that at Fox Law.
Q: What are the critical factors in selecting a law firm to assist with fire recovery?
Frantz: The most important consideration is that the law firm has experience with wildfire litigation. Wildfire damages are a nuanced area of law and an inexperienced firm will not be able to maximize the compensation you are entitled to receive. There have been thousands of homes destroyed by utility-caused wildfires in California over the last decade. There are lots of firms, such as ours, who have decades of experience helping clients recover from wildfires. Make certain that whoever you decide to work with gives you confidence in their experience, meets you with compassion and empathy to support your recovery and takes the time to answer all of your questions.