The devastating Eaton and Palisades fires that swept through Los Angeles County in January 2025 claimed 31 lives—19 from the Eaton Fire and 12 from the Palisades Fire—while destroying thousands of homes and displacing entire communities. Recent investigations have revealed a troubling reality for many families whose homes initially appeared to survive the flames: toxic contamination that may pose serious health risks and potentially create complex legal challenges.
The toxic contamination discovered in homes throughout wildfire-affected areas has created a web of legal issues that Angelinos must navigate while still dealing with the trauma of displacement and loss. Understanding these legal implications is crucial for those working to obtain compensation from their insurance company, as well as those in litigation against Southern California Edison (SCE) for allegedly starting the Eaton Fire.
Wisner Baum was one of the first law firms in Los Angeles to file Eaton Fire lawsuits against SCE. If you have questions about a legal case after the 2025 fires in LA, contact Wisner Baum today for a free and confidential consultation.
Toxic Contamination After the LA Fires
When wildfires burn through residential neighborhoods, everyday household items can transform into dangerous toxins. It’s possible for plastic to release formaldehyde, burning rubber from garden hoses can emit benzene, polyester in clothing and furniture can unleash carcinogenic gases, and electronic devices—including printers and LED lights—can melt into clouds of cyanide when exposed to extreme heat.
The Los Angeles County Department of Public Health issued advisories for residents within 250 yards of burned structures, recognizing the serious health risks posed by fire-related contamination. The health concerns associated with these contaminants are well-documented in scientific literature, with studies following major disasters documenting chronic respiratory illnesses, elevated cancer rates, and other serious health issues among exposed populations.
Testing conducted by industrial hygienists found concerning levels of toxic substances in homes that appeared structurally sound after the fires. This contamination requires professional hazardous material remediation—not simple cleaning methods—to ensure homes are safe for occupancy. The problem? Insurance companies will downplay the seriousness of the situation and may try to insist a basic cleaning is sufficient, and they may not pay the full cost associated with toxic damage and relocation that many victims have been forced to reckon with.
Insurance Bad Faith and Coverage Disputes After Wildfires
One of the most significant legal challenges facing fire victims involves disputes with insurance companies over smoke and other toxic substance damage coverage. According to a report from the New York Times, insurance companies don’t often test for toxic substances. If they do, insurers may only check for a handful of dangerous substances while omitting dozens of others that can still cause harm, or they may do superficial testing that does not look for hazardous exposure that may penetrate deeper into something like a sofa or bed.
While some victims can afford to pay out of pocket for private testing, hoping to receive reimbursement later, many others have no choice but to return to their homes.
Insurance companies have been directing homeowners to use simple cleaning methods like mops, brooms, and sponges for contamination that requires professional hazardous material remediation. This approach not only fails to address the health risks but also potentially violates insurance companies' obligations to restore homes to their pre-fire condition.
While the California Department of Insurance issued guidance after the fires clarifying that smoke damage coverage remains available under many policies, LA fire victims continue to face challenges as insurers apply heightened standards for determining smoke damage that contradict established policy language.
Smoke Damage Ruling in California FAIR Plan Lawsuit
In June, Los Angeles County Superior Court Judge Stuart Rice ruled that the California FAIR Plan Association's smoke-damage policy violates state law because it provides less coverage than required by California's Standard Form Fire Insurance Policy, which covers all “loss by fire” damages without distinguishing between different types of fire damage.
Cited as a potential “game-changer” for wildfire lawsuits, the ruling may impact claims for those who suffered losses in the LA fires.
The decision may potentially:
- Force the FAIR Plan to change its smoke-damage policy in California.
- Apply to thousands of claims since 2017, including those from the January 2025 fires.
- Allow reopening of previously closed fire claims.
- Require the plan to pay for laboratory testing and professional cleaning services rather than asking homeowners to clean up themselves.
Tenant Rights and Habitability Enforcement
Renters have also faced unique challenges in addressing toxic contamination, leading to lawsuits against local government entities. The Altadena Tenants Union, Pasadena Tenants Union, and individual renters have filed lawsuits against Los Angeles County and the city of Pasadena for failing to enforce habitability standards and conduct proper inspections of contaminated rental properties.
These lawsuits cite violations of Health & Safety Code Section 17970.5, which requires government entities to inspect buildings when complaints of substandard housing conditions are filed. Public health experts have confirmed the presence of dangerous levels of lead and other heavy metals in areas affected by the fire, yet lawsuits allege local governments have failed to carry out the inspections that would be the first step toward ensuring appropriate remediation.
According to the complaints, tenants have been forced to pay out of pocket for testing to prove contamination levels, while those unable to afford testing or remediation have lost their rent-controlled units or been forced to live in potentially unsafe conditions.
Utility Liability Under Inverse Condemnation
California's unique inverse condemnation law creates strict liability for utility companies whose equipment causes wildfires, regardless of negligence. This legal doctrine, rooted in the Takings Clause of the California Constitution, holds utilities accountable for property damage when their infrastructure sparks fires.
SCE faces mounting legal exposure as multiple lawsuits allege that their equipment sparked the Eaton Fire. Los Angeles County filed suit against SCE in March 2025, seeking to recover costs and damages. Edison has acknowledged that equipment failure is a “leading theory” for the fire's cause, with video evidence showing sparks from SCE transmission towers igniting vegetation in Eaton Canyon during extreme wind conditions.
Under inverse condemnation, fire victims can recover compensation for all economic losses arising from any damage the fire caused. This doctrine ensures that victims can seek full compensation for their property losses even when insurance coverage falls short.
Legal Remedies and Rights Available
Insurance Claim Strategies
Fire victims dealing with toxic contamination have specific rights under California law that extend beyond standard property damage claims. California Department of Insurance guidance allows policyholders who suffered total losses to collect advance funds for personal property amounting to “no less than 30 percent” of Coverage A limits, and insurers must begin claims investigation within 15 days of filing.
For contamination claims specifically, victims should document all contamination with professional testing rather than relying solely on visual evidence. Industrial hygienist inspections provide comprehensive contamination assessments that can support claims for necessary remediation. Bad faith claims may be available if insurers unreasonably delay, deny, or undervalue legitimate contamination claims.
Environmental Contamination Claims
The toxic debris cleanup process has created additional legal complexities around responsibility and safety standards. Property owners face difficult decisions regarding participation in government-sponsored debris removal programs versus private cleanup options.
The Los Angeles County Health Officer has issued orders prohibiting cleanup and removal of fire debris until hazardous materials inspections are completed. This creates both protection for property owners and potential complications in the claims process, as documentation requirements must be balanced with ensuring safe cleanup.
Tenant Protection and Housing Rights
Renters facing contaminated living conditions have legal recourse through multiple avenues beyond the ongoing lawsuits against government entities. Habitability enforcement actions can be pursued against landlords who fail to address toxic contamination, and rent withholding may be appropriate for uninhabitable conditions.
The legal landscape has been further complicated by illegal rent increases following the fires. Lawsuits have been filed against multiple landlords and property management companies alleging rent increases of 25% to 50% in direct violation of California Penal Code § 396, which limits increases to 10% following declared emergencies.
The Critical Role of Professional Legal Representation
The complex intersection of insurance law, environmental contamination, utility liability, and tenant rights requires experienced legal advocacy. Fire victims attempting to navigate these challenges alone face insurance companies with teams of adjusters and attorneys working to minimize payouts, utility companies with extensive resources to contest liability claims, and government entities that may prioritize cost containment over victim protection.
Experienced wildfire attorneys can coordinate professional contamination testing and expert witness testimony, navigate complex insurance policy language and bad faith claims, pursue maximum compensation through utility liability lawsuits, and ensure compliance with all documentation and deadline requirements.
Protecting Your Legal Rights
The legal implications of toxic contamination from the LA fires continue to evolve as new cases emerge and courts interpret existing laws in this unprecedented context. Fire victims should take immediate action to protect their legal rights by documenting everything, preserving evidence, understanding their coverage, and seeking professional guidance.
Essential steps include maintaining comprehensive records of contamination, health impacts, and financial losses; avoiding disturbing contaminated areas until proper testing and documentation is complete; reviewing insurance policies with qualified professionals who understand contamination claims; and consulting with attorneys experienced in wildfire litigation and toxic contamination cases.
Helping Eaton Fire Victims Can Recover
Toxic contamination and smoke damage stemming from the LA fires present complex legal challenges for victims to face. We want people to understand that they have rights, and they are not alone.
California law provides robust protections for fire victims, including strict liability for utility companies, strong insurance consumer protections, and clear habitability standards for rental properties. The key to successful recovery lies in understanding these rights and working with experienced legal counsel to effectively advocate for maximum compensation and accountability.
For families dealing with the overwhelming challenges of toxic contamination, professional legal representation isn't just helpful—it's essential for ensuring that any and all responsible parties are held accountable, and that victims receive the compensation they need to rebuild their lives safely and completely.
If you have been affected by toxic contamination from the LA fires, you don't face these legal challenges alone. The experienced wildfire attorneys at Wisner Baum understand the legal landscape surrounding both wildfires and toxic torts. Across all areas of practice, we have earned over $4 billion for clients.
Contact us today by filling out our claims evaluation form or call (855) 948-5098 for a free consultation to discuss your legal options.
