Insurance companies file lawsuit against Xcel Energy for Marshall Fire losses

The Marshall Fire in December 2021 caused billions of dollars in damage. Now insurance companies are trying to recover the money they paid out to their customers.

Craig Simon, an attorney representing numerous insurance companies, told CBS News Colorado in January 2023, "Remember 'our system is built on the responsible party ultimately paying for their conduct.'"

A lawsuit has been filed in Boulder County by more than 150 insurance companies. It follows previous lawsuits by home and business owners, in each case, the only defendant is Xcel Energy.

Eve-Lynn Rapp, a plaintiff's attorney, referred to the official investigation saying, "They found that they (Xcel) were the probable cause of at least one of the fires. I don't think anyone has taken anything off of the table yet."

The Boulder County Sheriff's Office found the massive blaze had two ignition points. One from a damaged Xcel powerline and the other from a previous trash fire on a religious group's property that was believed to be completely extinguished.

Rapp did not rule out adding a defendant,  "Right now from the report they were found not to be negligent but it's possible, they could be added to the case."

Attorneys suing Xcel on behalf of clients are trying to keep the case from being moved out of Boulder County.

Gregory Waters, a plaintiff's attorney, put it this way, "In no way are we going to agree to change the venue the fire started in Boulder County. The people affected are in Boulder County."

A hearing was held Tuesday in which consolidation of the many lawsuits before one judge was discussed.

Xcel has claimed the hurricane-force winds the day of the fire were an act of God, and the investigation conclusions were flawed stating:

"Our thoughts are with the families and communities impacted by the devastating wildfire in Boulder County. We agree with the Boulder County Sheriff's Office report that the Marshall Fire started as a result of an ignition on a property (5325 Eldorado Springs Drive) previously reported to be affiliated with an entity called the Twelve Tribes, and that this ignition had nothing to do with Xcel Energy's powerlines. The Sheriff's report cites multiple potential causes for a second ignition near the Marshall Mesa Trailhead that started roughly an hour after the first fire. We believe the second fire burned into an area already burned by the fire from the first ignition, and did not cause damage to any homes or businesses. We strongly disagree with any suggestion that Xcel Energy's powerlines caused the second ignition, which according to the report started 80 to 110 feet away from Xcel Energy's powerlines in an area with underground coal fire activity. Xcel Energy did not have the opportunity to review and comment on the analyses relied on by the Sheriff's Office and believes those analyses are flawed and their conclusions are incorrect.  We have reviewed our maintenance records and believe the system was properly maintained. We operate and maintain our electric system consistent with leading energy service practices and we're proud of our employees and the work they do to deliver safe, reliable and clean energy to our communities. As members of the Boulder community, we will continue to support our neighbors in this recovery.