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Lawyer for Texas Panhandle Wildfire Lawsuit Talks Impact

Mikel Watts, an attorney who represents more than 100 families and ranchers significantly affected by the recent wildfires in the Texas Panhandle, spoke about his lawsuit against the utility companies responsible for the Smokehouse Creek fire. The lawsuit names Xcel Energy, its Texas subsidiary Southwestern Public Service Co. (SPS), and Osmose Utilities Services.

Watts has been involved in many high-profile cases throughout his legal career and was part of the litigation that resulted in a $13.5 billion settlement from Pacific Gas & Electric (PG&E) for the 2017 and 2018 California Camp Fires. PG&E was found to have experienced equipment and power line failures that resulted in wildfires that resulted in the loss of over 18,000 structures and 85 deaths. Watts also represents the families of 29 residents who died in the city of Lahaina in a lawsuit against Hawaii Electric over the Maui wildfires that killed over 100 people and destroyed 2,200 structures.

Osmose Utilities Services was hired to inspect poles for SPS, and the lawsuit alleges the contractor “negligently failed to adequately or properly inspect or report on the rotten pole that caused the fire.” “.

One of Watts' clients is Melanie McQuiddy, the first plaintiff to file a lawsuit in Hemphill County and one of the many affected by the Smokehouse Creek Fire, which destroyed over a million acres of land in the Texas Panhandle. The lawsuit alleges that Xcel subsidiary Southwestern Public Service Co.'s utility pole was in poor physical condition before it collapsed and caused the fire, and that the company failed in its obligation to inspect and maintain its equipment.

“The fire started when a rotting utility pole fell in high winds,” Watts said. “The pole had been inspected by Osmose in the weeks before the fire.” They put a red stamp on the pole, which is a signal not to climb that pole, and it is not stable. The replacement was planned, but the company had failed to replace it.

Watts was unsure exactly when the post had been marked, but speculated it must have been in the last seven weeks. He said the exact schedule for the trial would be announced at the investigation stage.

“Several hundred buildings were lost and over a million acres of valuable ranch land were lost,” Watts said. “This was an out-of-control forest fire burning at approximately 3,000 degrees. This type of fire burns and kills the root systems and (the land) will not be usable for livestock grazing for several years. Economically, this will have devastating consequences for local ranchers who have collectively lost tens of thousands of cattle.”

Watts said the economic impact could be felt for generations to come. Watts sees a recurring problem as these utilities not maintaining their infrastructure, leading to multiple fires across Texas.

“This is a recurring problem in the Western United States with an aging utility grid that puts profits before people and equipment is not properly powered and maintained,” Watts added.

Watts says Xcel has admitted responsibility in this fire, but there is dispute about the extent of responsibility and damage.

“I think they know they're responsible for this, but their position seems to be: Oh, it's not that bad, and so we're going to have a debate about the extent of the damage that Xcel has done,” Watts said. “They acknowledge that they must pay for the damages because their equipment started the fire.”

Watts says that in addition to suffering land and livestock damage, ranchers have lost their ability to make a living and the land on which to do so. For these ranchers, many of whom have bred a line of cattle for generations, adding value to their product will require a complete reboot of their herds and bloodlines.

“It is difficult for these farmers and ranchers who have lost the land they value, many of which have been in their families for generations,” Watts said. “They have lost their livelihood and the question is how long this will last. That’s why we have to compensate these people quickly.”

Another issue with the amount of damage these plaintiffs suffered is that insurance is typically not enough to cover the entire loss, according to Watts.

“I think litigation pressure from communities is driving changes in technologies, procedures and collaborative policies to prevent disasters like this from happening again,” he said. “Utilities are government-sponsored monopolies that are allowed to charge regulated prices to ensure a profit. You can't just turn off the power. These companies need to do a better job of maintaining their equipment because people die in wildfires. In this case, a lot of cows died.”

Watts says Xcel's obligation to ensure its equipment doesn't fall apart and start a fire is a non-delegable duty of the state.

“You can't give it to someone else, but these utilities hire other companies, and in this case Xcel hired Osmose to inspect their poles and things like that. Osmosis was clearly out there, the post was obviously rotted and there was clearly a red sign attached to it marking it as unsafe. Only discovery will reveal whether Xcel made the decision not to do it, or whether it just didn't happen, or whatever. But there’s a lot of blame to go around,” he said.

Watts said litigation like this often results in companies being prosecuted for their responsibility for failing to maintain their infrastructure.

Watts said major efforts are still being made to assess the harm suffered by his plaintiffs. “Hopefully it progresses in months and not years,” he said. “We need to move forward on this issue together as a community. A group of ranchers joining forces is an army that utilities need to take note of. So together you are much stronger than if only some people were involved and others weren’t.”

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