Daily Dicta: Uh-Oh. Why Is Makan Delrahim's Name on This Lawsuit?
The head of the Justice Department's Antitrust Division is on the opposite side of the "v" from Gibson, Dunn & Crutcher in a new lawsuit against SoCal Edison and Boeing.
January 23, 2020 at 12:47 AM
3 minute read
Here's a plaintiff that might give any Big Law litigator pause: Makan Delrahim.
The head of the Justice Department's Antitrust Division is on the opposite side of the "v" from Gibson, Dunn & Crutcher in a new lawsuit against SoCal Edison and Boeing stemming from the 2018 Woolsey Fire, which burned 97,000 acres near Los Angeles and killed three people.
Gibson Dunn represents Boeing. On Tuesday, firm lawyers including Theodore Boutrous Jr. removed the suit from Los Angeles County Superior Court to U.S. District Court for the Central District of California.
According to online property records, Delrahim owns a house in Malibu. In his financial disclosure statements, he values it between $1 million and $5 million—so your basic Malibu crash pad. (The median sale price in Malibu for the first half of 2019 was $3.6 million.)
His house suffered unspecified damage in the fire, and his insurer paid him $83,371. Now, underwriter Lloyds of London is going after SoCal Edison and Boeing as Delrahim's subrogee, seeking reimbursement for the payout.
Represented by Higgs Fletcher & Mack and Skierski Jain, Lloyds faults SoCal Edison equipment for starting the fire when its power lines came into contact with bone-dry vegetation.
As for Boeing, it owns the Santa Susana Field Laboratory in Ventura County, where the fire originated.
Lloyds says the aerospace giant shares the blame for failing to "take reasonable measures to prevent wildfires from starting due to equipment it allowed on its premises," as well as failing to "reasonably manage vegetation on its premises." They also fault Boeing because it allegedly didn't "reasonably train, equip, and deploy its own fire suppression unit to combat wildfire that started on its premises" or allow "outside fire suppression efforts" sufficient access to the site.
Lawyers from Higgs Fletcher and Gibson Dunn did not respond to requests for comment.
Although Delrahim does not appear to have any active role in the litigation, the mere presence of his name on the complaint—he is after all the nation's top antitrust cop—gives this passage some extra oomph.
SoCal Edison "enjoys a monopoly which is allowed by law to provide power to consumer and commercial users within Los Angeles and Ventura Counties," the Lloyds lawyers wrote.
"In exchange for their monopoly status and guaranteed rate of return, SCE has to do only two things in connection with the delivery of their product: (1) maintain their equipment in safe operating condition; and (2) ensure that their lines do not come into contact with each other, other parts of their infrastructure, and/or trees and vegetation. The fire started because SCE failed to do either."
Gee, if only some high-level antitrust authorities knew about this sorry state of affairs…
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllLitigators of the Week: A $604.9M Trade Secrets Verdict With a Big Assist From a Juror Question
Litigators of the Week: A Reset in the Fight Over Nearly $2B in Bonds Issued by Venezuela's National Oil Company
How Kirkland & Ellis Litigators Became a National Brand in Oil and Gas
Dorsey & Whitney Hits Back Against Complaint Claiming Firm Dragged Its Feet on Malpractice Suit Against Fellow Big Firm
Trending Stories
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250