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Insurance companies sue Avista over payments made in Babb Road Fire

More than a dozen insurers have sued Avista alleging negligence and seeking repayment of payouts made related to the Babb Road Fire.

SPOKANE COUNTY, Wash. — More than a dozen insurance companies have filed a lawsuit against Avista Utilities as they seek to recover insurance payouts related to the 2020 Babb Road Fire. The fire destroyed more than 80% of the buildings in the towns of Malden and Pine City.

The lawsuit follows a similar suit filed by residents of the towns who lost their homes in the devasting wildfire on Sept. 7, 2020.

In both cases, the insurers and residents accuse Avista of negligence based on a report from the Washington State Department of Natural Resources (DNR).

DNR determined the Babb Road Fire was caused by contact between a Ponderosa pine tree and one or more Avista power lines after a 'defective tree' broke and came in contact with Avista power lines.

DNR investigators determined the tree had significant growth defects and also carried disease leaving it more susceptible to failure.

Documents say the DNR also found that the defective tree had already failed and broken once a few years before the fire, and the tree should have been removed or trimmed by Avista.

“Avista breached its duty and was negligent when it failed to de-energize its power lines during a Red Flag Warning and also when it failed to implement an effective vegetation management program that allowed a tree to contact its energized power lines and cause a fire, “ the lawsuit said.

The insurance companies want Avista to reimburse the costs of payouts made as a result of the fire. The lawsuit said the amount will be determined at trial but estimates it will be more than $8 million.

KREM 2 News reached out to Avista for comment but had not heard back at the time this article was published.

WATCH MORE: Malden residents who lost their homes in Babb Road Fire filed lawsuit against Avista for 'negligence

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