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Aug. 27, 2026

Gut-and-Amend: California's Wildfire Liability Bailout? | Kabateck & Karnikian: Off the Record, Ep. 14

Brian Kabateck and Shant Karnikian unpack a last-minute California wildfire liability overhaul--and why they say its protections for utilities could ultimately leave insurance policyholders and taxpayers footing the bill.



In the final weeks of California's legislative session, utility companies are pushing a wildfire liability overhaul negotiated behind closed doors in Sacramento. Brian Kabateck and Shant Karnikian break down the "gut and amend" process that could fast-track the bill with little public scrutiny, and the specific asks on the table: weakening the state's strict liability and inverse condemnation standard, limiting insurers' right to subrogate against utilities, capping damages for things like emotional distress, and capping attorney fees, plus a proposed taxpayer-funded backstop for utility liability. They explain why each change shifts costs onto insurance policyholders and taxpayers rather than lowering rates, and why they expect the bill to be jammed through at the last minute.



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Kabateck & Karnikian: Off the Record is opinion content independent of the Daily Journal newsroom. Opinions expressed are those of the hosts and do not represent the Daily Journal Network or the Daily Journal. Not legal advice.

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