Nearly 4,000 people have signed settlement agreements with Xcel Energy over its alleged role in sparking the 2021 Marshall Fire, attorneys said during a hearing in Boulder district court on Tuesday.
That represents nearly all of the individuals who sued the state’s largest utility over claims that its equipment sparked Colorado’s costliest wildfire.
It’s unclear how much money people have received as part of the settlement agreements. Those amounts remain confidential, and individuals were required to sign a confidentiality clause to accept the payments.
For years, lawyers sought to prove that Xcel, as well as two telecom companies, should be liable for sparking the fire, and pay hefty damages to victims as a result. Many insurance companies, as well as Boulder County and other municipalities, also sued the company to recoup their losses.
In late September, after years of legal wrangling and on the eve of a jury trial, Xcel and the companies agreed to pay around $640 million to settle those claims. As part of its settlement agreements, Xcel admitted to no wrongdoing and maintains that its equipment did not spark the fire.
It’s unclear how much money will go directly to towns or insurers. Law firms representing plaintiffs also negotiated directly with Xcel’s lawyers, meaning different firms received different payouts for their clients.
Since September, attorneys have been working to finalize agreements with individuals, insurers and towns. During Tuesday’s hearing, they said that the process is nearly complete.
Every insurance company who sued Xcel to recover money and agreed to settle their claims has since been paid out, said Kevin J. Orsini, an attorney representing the utility.
“Those claims are completely resolved,” Orsini said. “They've been signed, sealed, delivered, payment made,” and are now waiting on the court to formally dismiss their claims.
Municipalities are also nearly finished accepting their settlement offers. The Boulder County Board of Health, for instance, voted to accept its settlement offer during its December meeting.
Orsini said final payments to municipalities are likely to be made within the next two months.
While the vast majority of claims by individual victims are finalized, a small handful of plaintiffs who originally joined the lawsuit cannot be contacted or have since died.
There are also just four people who still have open claims or have not signed their settlement offers, Orsini said.
Those remaining plaintiffs are either working through a mediator or negotiating directly with Xcel’s lawyers to find an agreement. Orsini said he was “optimistic” that the remaining claims could be resolved, but if not, trials may be coming.
“ But I remain optimistic that we don’t need to get there” he said.
Some law firms are also working through an internal appeals process if victims want a higher settlement offer than was originally offered, according to Eve-Lynn Rapp, whose firm represents victims.
But there are some issues that could continue to drag out payments.
During a November hearing, attorneys said around 600 children and teenagers are listed as plaintiffs, which means their settlements may need special approvals before they are finalized.
Another judge has been appointed to handle those issues. Rapp said her firm, and others representing victims, are hoping to expedite and streamline that process if possible.
Another hearing about the status of settlements and potential trial issues is slated for February 26.
