Subrogation Practice Areas

Successfully Pursue Subrogation Recovery for Utilities & Fire Damage

Whether installed overhead, underground, or a combination of both, electric utility distribution systems all work as a part of a massive infrastructure transporting energy from power generators to end users. Of the nearly 400,000 house fires that occur annually in the US, the second and third-largest causes are heating and electrical/utility dysfunction. Electrical failures alone cause 30,000 house fires each year. 

Due to their prevalence and potential for danger, utility infrastructure could cause legal disputes as much as they provide energy. There may be faulty installation, poor maintenance, or a host of other issues that could contribute to a loss incident. Other common utilities, such as water, sewer, and gas, are just as pervasive in our infrastructure and are also often implicated in property damage and injury claims.

Subrogation claims involving utilities are complicated by unique standards of care, issues of liability, and statutory and regulatory frameworks specific to the industry. Rathbone Group (RG)’s understanding of these claims at the federal, state, and local levels throughout the country maximizes our clients’ chances of recovering loss where utilities are to blame. Our subrogation attorneys, specialists and adjusters work with clients across the country to successfully resolve subrogated claims for utility and fire damage.

Managing Subrogation Claims for Underground Utility Damage

Utility companies and cooperatives can be held liable as a result of tortious actions or lack of action, meaning negligence. For instance, older water, gas, and buried electric infrastructure can cause catastrophic property damage simply by being ignored. In these cases, the utility company that was responsible for keeping that infrastructure in safe working order can be held liable for a subrogated property loss resulting from negligent maintenance.

Irresponsible actions regarding underground utilities can be just as devastating. The national hotline for underground utilities infrastructure is 811: Call Before You Dig. This service provides property owners with a civil survey of the relevant area that determines if and where underground lines or other hazards exist. Simply failing to confirm whether or not digging at a certain site is safe can be considered tortious negligence when subrogating a property matter against a utility provider.

Rathbone Group’s property subrogation department maintains a thorough knowledge of utility laws and regulations, including utility location laws in all 50 states. If damage is caused by digging, boring, excavation or other activity of a negligent third party, Rathbone Group is available to pursue all potential tort subrogation claims involving property damage.

Multiple avenues to subrogation recovery are available to RG’s clients, including pre-suit negotiations, mediation, and subrogation arbitration, which allows us to pursue each claim with the client’s specific resources and goals in mind. Often, costly litigation can be avoided with thorough subrogation investigations and aggressive pursuit of all negligent parties.

Effectively Subrogating Overhead Utility Damage Claims

In certain cases, overhead utility lines are downed by vehicles or heavy equipment, causing damage to property and even personal injuries. In these circumstances, fault can be difficult to determine and may ultimately depend on factors such as:

• whether the utility’s line was the correct height
• whether the utility company had prior notice of a problem in the line 
•  negligence of a driver or equipment operator  

Rathbone Group is adept in investigating and pursuing recovery in subrogation claims cases involving overhead utility lines, especially the nuances of applicable laws in a given jurisdiction. These statutes vary and can present complications in pursuing subrogation recovery because of the public nature of utility companies. While effective recovery of subrogated utility claims is possible, it takes the right knowledge and strategy by subrogation lawyers experienced in this sector.

Circumventing Obstacles to Hold Utility Companies Liable in Subrogation

In cases of insurance disputes, utility companies are given extra protections by law because of the infrastructural importance of their services. We have to consider the massive scale of 24/7/365 service a utility company has to manage, maintain, and repair when damaged. While some jursidictions do not apply the same expectations to a utility company as to a private citizen when considering negligence in a subrogation case, this does not mean that they can never be held responsible for negligent or tortious actions. 

Several regulatory agencies can apply to a utility subrogation claim, including:

• Public Utilities Commission
• Public Service Commission
• Corporation Commission
• Regulatory Commission
• Federal Energy Regulatory Commission (power)

These entities work with state legislators to create a statutory framework for utility companies and creating compliance standards that protect public safety and quality of service to recover claims. For instance, an attorney subrogating against a utilities company in Ohio has to properly navigate whether PUCO’s jurisdiction applies in a given subrogation matter involving a power supplier.

In this case, an Ohio subrogation attorney will have the specific knowledge and experience you need to navigate these issues. Rathbone Group’s team of subrogation lawyers are licensed in dozens of states and federal jurisdictions and partner with a national network of highly-vetted subrogation attorneys to provide clients nationwide the ability to pursue subrogation recovery against utility companies.

Navigating Fire Damage Claims Against Utilities Companies

Rathbone Group is also experienced in handling claims in which property has been damaged by smoke or fire emanating from an electrical utility pole, line, or transformer. While electrical utility companies are not expected to maintain constant surveillance over each pole and line, they still must exercise reasonable care and maintenance over their facilities in order to avoid causing damage. 

Tortious negligence to maintain equipment is a public safety risk. In subrogation matters involving fire damage from malfunctioning infrastructure, determining the utility company’s knowledge prior to the incident is a key factor in analyzing the likelihood of receiving recovery compensation from the company. After the incident, a prompt and thorough subrogation investigation can collect delicate information from the scene of a fire that may support a claim against the utility company, such as point of origin, cause, progression, and prior notice.

Effective Subrogation Services for Utility Claims: The Rathbone Group Advantage

Rathbone Group offers unmatched subrogation services for these complicated cases to streamline your recovery pursuit, with proficiency in:

• Identifying the standards for utility location and maintenance.
• Performing swift and thorough investigations, including skilled analysis of police reports and eyewitnesses.
• Navigating local laws and regulations governing the subrogation process and utility company liability.
• Pre-suit subrogation claims resolution for utilities and fire damage via mediation or arbitration.
• Litigating subrogated utility matters in a variety of states.
• Efficient, effective navigation of the utility subrogation process while minimizing costs for our clients.

RG’s attorneys work through the subrogation investigation and claims process with adept knowledge of federal and state regulations, the utility company’s potential liability, and how to properly subrogate utility claims. In subrogation and insurance law, legislation varies, sometimes dramatically, depending on in which state the matter is brought. Utility and fire cases are perhaps one of the most complex types of subrogation matters. Let our dedicated staff of subrogation attorneys, specialists, and claims adjusters help you achieve maximum recovery on utility or fire claims while minimizing cost.

Contact Rathbone Group