Watch the full interview: Altadena Fire Victims: Why Your Settlement Could Be Delayed (YouTube)
Earlier update with Chris: Eaton Fire Update — Legal Settlement & Market Analysis for Altadena (YouTube)
Quick Answer
If you lost your home in the Eaton Fire, listing your burned lot for sale before your claim resolves can count against you. Fire litigation attorney Chris Hendricks of Fox Law explains that owners with a “genuine intent to restore” can seek the full cost to rebuild, while owners without that intent are generally limited to the drop in property value — usually a much smaller number. Talk to your attorney before you list.
Where does the Eaton Fire litigation stand?
Chris, whose firm has worked on about 26 wildfires over the past decade, described the Eaton Fire as roughly 9,000 to 10,000 structures destroyed, nearly 20 deaths, and tens of billions of dollars in damage. Fox Law’s main liability theories against Southern California Edison, as he described them:
- Failure to maintain equipment — idle or “zombie” power lines taken out of service around 1971 that still held a charge the night of the fire.
- Failure to de-energize lines during a severe wind event, after the Palisades Fire had already started.
At the time of the interview, bellwether pools had been set, with about 50 cases to be selected and the first trials set for January 25, 2027. Chris expected serious settlement efforts in the middle to latter part of 2026 as that date approached. (Check with your attorney for the latest status — litigation timelines change.)
What is a bellwether case?
Bellwether cases are representative cases worked up and set for trial first. Their outcomes — or the settlements that happen to avoid trial — help set a benchmark for what similar cases are worth.
Is this a class action?
No. Chris explained it’s a mass tort. In a class action, everyone’s damages are basically the same (he used the old iPhone-battery cases as an example). In wildfire cases, California law treats every property as unique, so each client’s case is worked up individually based on what it would take to rebuild their specific home.
How does selling your lot affect your Eaton Fire settlement?
This is the most important point for owners deciding what to do next. Chris described two ways damages are measured:
| Diminution in value | Cost to restore | |
|---|---|---|
| Applies when | No genuine intent to rebuild | Genuine intent to restore the property |
| How it’s figured | Value the day before the fire minus value the day after | What it costs today to rebuild what you lost |
| Example | $1M home → $500K lot = about $500K | Today’s construction cost for a comparable home |
| Typical result | Lower | Almost always significantly higher |
How do you show genuine intent? Building permits and starting construction are strong evidence, but Chris noted many owners can’t start without insurance or settlement money — so a lot depends on what you say your intentions are. And listing your lot for sale can count against you.
Should I sell my lot or rebuild?
There’s no one right answer. On camera I shared two real situations from my own clients:
- A couple in their 80s decided they didn’t want to spend years rebuilding. They sold the lot, accepted that value, and moved on with their lives.
- A client who lost three properties is rebuilding all three. The first — the one they’ll live in — had framing and foundation done, inspections passed, and was moving into plumbing, electrical, and windows.
Before deciding, weigh your age and energy, your insurance and settlement picture, how long you can carry costs, and how much the community means to you — and get legal advice on how a sale could affect your claim.
How long will rebuilding Altadena take?
Chris pointed to the Woolsey Fire: roughly five years later, about 50% had rebuilt. He estimated a typical rebuild takes at least two years, and many owners can’t start until settlement or insurance funds arrive. As of his last check before our interview, about 1,500 building permits had been issued — a good start against 9,000–10,000 lost structures.
He also said Altadena’s commitment to rebuilding is stronger than almost anywhere his firm has worked: “We’re not leaving. This is our area.”
What should investors and developers know?
My view, shared in the interview: after settlements are paid, some owners who planned to rebuild will change their minds and sell, which could add supply and create opportunities for builders buying several lots at once. But I’d urge caution for anyone building on speculation:
- Being the first finished house on a block of empty lots can make resale hard — buyers will see years of construction around them.
- You’ll be competing with owners who have a deep emotional connection to their land and neighbors.
- Run your numbers carefully, especially on lots that aren’t unique or high-value.
What about permits for a bigger home?
In the interview I noted that rebuilding on roughly the same footprint (I mentioned the “plus 200 square feet or 10%, whichever is greater” allowance) has a more streamlined approval path. Turning a 1,200-square-foot house into a 3,000-square-foot one means more plans, engineering, and review time. Chris confirmed some owners are getting larger homes approved — it’s just less of a rubber stamp. Confirm current rules with LA County before you design.
Frequently Asked Questions
What caused the Eaton Fire, according to the plaintiffs?
Fox Law’s theory, as Chris described it, is that decommissioned “zombie” Edison power lines from around 1971 still held a charge and arced, and that lines weren’t de-energized during high winds.
When is the first Eaton Fire trial?
At the time of the interview, the first bellwether trials were set for January 25, 2027. Check with your attorney for the current schedule.
Will the Eaton Fire cases settle before trial?
Chris expected serious settlement efforts in the middle to latter half of 2026 as the trial date approached, but no outcome is guaranteed.
Is the Eaton Fire lawsuit a class action?
No. It’s a mass tort, so each property and family’s damages are evaluated individually.
Can selling my burned lot reduce my settlement?
It can. Listing your lot may undercut a claim that you intended to rebuild, which can limit you to the lower diminution-in-value measure. Talk to your attorney first.
What does “genuine intent to restore” mean?
That you intend to rebuild the property. Permits and construction help prove it, but your stated intentions also matter when you can’t afford to start yet.
How long does it take to rebuild after a wildfire?
Chris estimated at least two years for a typical rebuild, and noted the Woolsey Fire area was only about 50% rebuilt after five years.
Can I rebuild a bigger house in Altadena?
Some owners are getting approval for larger homes, but expect more plans, engineering, and review time than a like-for-like rebuild.
Can renters or families of victims file claims?
Chris said Fox Law also represents renters and families of people who died in the fire — not only homeowners.
Who can help me decide whether to sell or rebuild?
Start with your fire attorney on the legal impact. For a current value of your lot and the local market, call me at 310-920-1108.
Guest
Chris Hendricks, Fox Law APC — wildfire litigation. Email: chendricks@foxlawapc.com
Disclaimer: This article summarizes an interview for general educational purposes. Will Flannigan is a licensed California real estate agent, not a tax advisor, financial planner, or practicing attorney, and nothing here is legal, tax, or financial advice. Figures are examples and opinions shared by the guest and may not apply to your situation or reflect current law. Consult a qualified attorney, CPA, or financial professional before acting.
About Will Flannigan
Will Flannigan is a Certified Trust & Probate Specialist (CTPS) with The Nell Team at Equity Union Real Estate, representing buyers and sellers across Burbank, Glendale, Pasadena, and greater Los Angeles since 2014. A former attorney who later led a nine-agent sales team as Sales Manager at Keller Williams Burbank, Will specializes in trust and probate sales, equestrian properties in the Burbank Rancho, and helping homeowners downsize — and serves Mandarin-speaking clients in fluent Mandarin. He hosts “The Fine Print,” an interview series connecting homeowners with attorneys and financial professionals.
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Will Flannigan · DRE #01951292 · The Nell Team at Equity Union Real Estate