Politics

/

ArcaMax

Trump administration supports LA wildfire victims suing State Farm

Laurence Darmiento, Los Angeles Times on

Published in Political News

President Trump recently bashed State Farm on social media, saying the insurer's treatment of residents whose homes burned in the January 2025 wildfires had been "absolutely horrible."

A month later, the Department of Justice has filed a brief supporting 60 fire victims who have sued State Farm and other insurers, claiming the carriers colluded to force them onto California's Fair Plan, the state's insurer of last resort.

The document filed by the Justice Department in the Los Angeles Superior Court case led by plaintiffs Todd and Kimberley Ferrier — whose Pacific Palisades home burned down — buttresses arguments made by the victims' attorneys.

Specifically, the brief seeks to knock down one of the legal theories made by the insurers to have the case thrown out.

The argument claims that the insurer's are shielded from antitrust liability under both California and federal law due to a specific legal doctrine that applies to them involving their status as state-regulated entities.

"The last thing the fire victims need is the improper use of certain legal doctrines to deprive Angelenos of their day in court," said Deputy Assistant Attorney General Charlie Beller of the department's Antitrust Division in press release.

While the legal brief takes no position on the merits of the homeowners' collusion allegations, the division said it routinely files statements of interest "where doing so helps protect competition and consumers, including by encouraging the sound development of the antitrust laws."

Bob Ruyak, an attorney representing the homeowners, said that while the government didn't take a position on the merits of the case, it's brief was welcomed as the judge weighs whether the case will move to trial.

"They didn't really say anything much more than we said, but it was additional support," said Ruyak, who added that the insurers legal theory was "very weak" anyway.

State Farm spokesman Sevag Sarkissian said the department's brief only addressed a legal argument seeking dismissal of the lawsuit.

"It is important to note that the DOJ did not take a position on whether the plaintiffs' factual claims are accurate or supported."

Ruyak, based in Washington D.C., said that the homeowners' legal team had not reached out to the government and was unaware why the department decided to weigh in, though the antitrust division does monitor relevant cases.

 

"But if the President's interested in it, that might spur them a little more than it might otherwise, but we just don't know," he said.

Department of Justice officials did not respond to a message for comment.

Trump's March 31 post on Truth Social followed a visit by administration officials to Pacific Palisades in February.

The post also asked EPA Administrator Lee Zeldin to provide Trump with a "list of the Companies who acted swiftly, courageously, and bravely in order to make their clients happy and, even more importantly, in order to fulfill their Legal obligations. Likewise, I have asked to see those Companies that were particularly bad."

State Farm, the state's largest home insurer, is the lead defendant in the lawsuit, but it also names Farmers, Mercury and other top insurers. It's also one of a pair of lawsuits filed by the attorneys accusing collusion by the carriers.

They allege the companies financially benefited when policyholders were move onto the FAIR Plan, since it is financially backed by the insurers and sells policies that are more expensive but offer less coverage.

The Ferrier lawsuit seeks to compensate homeowners who experienced fire losses exacerbated by the FAIR Plan's limited coverage. The other case is a proposed class action that would compensate policyholders for the higher premiums.

A ruling on the insurer's efforts to have the cases dismissed is expected shortly.

The disclosure Monday that the Justice Department filed the brief came on the same day that California regulators filed an administrative action against State Farm.

It seeks millions of dollars of fines and possible suspension of the carrier's license to sell insurance in California, alleging State Farm mishandled January 2025 wildfire claims.

The company acknowledges some claims were mishandled but rejected claims it engaged in a "general practice of mishandling or intentionally underpaying wildfire claims."


©2026 Los Angeles Times. Visit at latimes.com. Distributed by Tribune Content Agency, LLC.

 

Comments

blog comments powered by Disqus

 

Related Channels

The ACLU

ACLU

By The ACLU
Amy Goodman

Amy Goodman

By Amy Goodman
Armstrong Williams

Armstrong Williams

By Armstrong Williams
Austin Bay

Austin Bay

By Austin Bay
Ben Shapiro

Ben Shapiro

By Ben Shapiro
Betsy McCaughey

Betsy McCaughey

By Betsy McCaughey
Bill Press

Bill Press

By Bill Press
Bonnie Jean Feldkamp

Bonnie Jean Feldkamp

By Bonnie Jean Feldkamp
Cal Thomas

Cal Thomas

By Cal Thomas
Clarence Page

Clarence Page

By Clarence Page
Danny Tyree

Danny Tyree

By Danny Tyree
David Harsanyi

David Harsanyi

By David Harsanyi
Debra Saunders

Debra Saunders

By Debra Saunders
Dennis Prager

Dennis Prager

By Dennis Prager
Dick Polman

Dick Polman

By Dick Polman
Erick Erickson

Erick Erickson

By Erick Erickson
Froma Harrop

Froma Harrop

By Froma Harrop
Jacob Sullum

Jacob Sullum

By Jacob Sullum
Jamie Stiehm

Jamie Stiehm

By Jamie Stiehm
Jeff Robbins

Jeff Robbins

By Jeff Robbins
Jessica Johnson

Jessica Johnson

By Jessica Johnson
Jim Hightower

Jim Hightower

By Jim Hightower
Joe Conason

Joe Conason

By Joe Conason
John Stossel

John Stossel

By John Stossel
Josh Hammer

Josh Hammer

By Josh Hammer
Judge Andrew P. Napolitano

Judge Andrew Napolitano

By Judge Andrew P. Napolitano
Laura Hollis

Laura Hollis

By Laura Hollis
Marc Munroe Dion

Marc Munroe Dion

By Marc Munroe Dion
Michael Barone

Michael Barone

By Michael Barone
Mona Charen

Mona Charen

By Mona Charen
Rachel Marsden

Rachel Marsden

By Rachel Marsden
Rich Lowry

Rich Lowry

By Rich Lowry
Robert B. Reich

Robert B. Reich

By Robert B. Reich
Ruben Navarrett Jr.

Ruben Navarrett Jr

By Ruben Navarrett Jr.
Ruth Marcus

Ruth Marcus

By Ruth Marcus
S.E. Cupp

S.E. Cupp

By S.E. Cupp
Salena Zito

Salena Zito

By Salena Zito
Star Parker

Star Parker

By Star Parker
Stephen Moore

Stephen Moore

By Stephen Moore
Susan Estrich

Susan Estrich

By Susan Estrich
Ted Rall

Ted Rall

By Ted Rall
Terence P. Jeffrey

Terence P. Jeffrey

By Terence P. Jeffrey
Tim Graham

Tim Graham

By Tim Graham
Tom Purcell

Tom Purcell

By Tom Purcell
Veronique de Rugy

Veronique de Rugy

By Veronique de Rugy
Victor Joecks

Victor Joecks

By Victor Joecks
Wayne Allyn Root

Wayne Allyn Root

By Wayne Allyn Root

Comics

Phil Hands A.F. Branco Steve Breen Dave Granlund RJ Matson John Branch