Corporation Can Be Liable for Cost of Fighting California Fires

Corporations can be held liable for the expenses incurred when one of their employees negligently starts a wildfire in California, the state’s top court said Monday.

The California Department of Forestry and Fire Protection, known as CalFire, determined that the 2016 Sherpa Fire, which burned nearly 7,500 acres in Santa Barbara County, started on the property of Presbyterian Camp and Conference Centers Inc., when a Presbyterian employee removed a smoldering log from a malfunctioning fireplace in one of Presbyterian’s cabins.

CalFire sought to recover more than $12 million in firefighting, investigation, and administrative expenses under the California Health and Safety ...