New Lawsuit Alleges That the California FAIR Plan Association Failed to Properly Investigate the Claim, Assess the Claimant's Losses, and Issue the Payment Owed Following the Devastating Palisades Fire.
LOS ANGELES, Calif. – A lawsuit has been filed against the California FAIR Plan Association (CFPA) and its hired claims adjusters for failing to provide claimant Horacio Weschler Ferrari the coverage he was entitled to receive after his property was severely damaged from the Palisades Fire. The lawsuit, brought by Singleton Schreiber LLP on behalf of the plaintiff, claims that the California FAIR Plan Association and other parties failed to conduct an adequate investigation, evaluate Weschler Ferrari's claim, and issue the payment he is entitled to under the policy.
After the ignition of the Palisades Fire, the flames rapidly advanced towards and damaged Weschler Ferrari’s property. While the structural integrity of his residence was preserved, the Los Angeles Department of Building and Safety determined the residence was not livable for multiple reasons, including a toxic interior caused by the fire. As a result, Weschler Ferrari would require the removal, destruction, and or decontamination of all soft-surface materials, including drywall, plaster, wall and ceiling insulation, and personal property such as books, clothes, artwork, and furniture.
After sending a claims adjuster to inspect his residence, CFPA told Weschler Ferrari that his estimated fire-related damages did not exceed $3,000 and that they were “unable to issue payment as the total cost of repairs does not exceed your $15,000 deductible.”
Soon after Weschler Ferrari sought estimates from independent sources, who determined that the cost of repairs of his home exceeded $1 million, as well as the presence of elevated levels of lead ash in his home and the market value of the property depleting by approximately $1.4 million.
The California FAIR Plan is funded through premiums collected from policyholders and reinsurance agreements, serving as the state’s insurer of last resort for homeowners unable to secure coverage in the private market. As traditional insurers pull out of California due to rising wildfire risks, the FAIR Plan’s enrollment has surged, but it has struggled to meet Californian homeowners’ needs.
This lawsuit is yet another example of the FAIR Plan’s unlawful conduct—recently a Los Angeles judge ruled that the FAIR Plan’s handling of smoke damage claims violates California law, declaring its coverage language illegal and less protective than what state insurance codes require. This follows a slew of rising lawsuits and widespread criticism of the FAIR Plan, as the plan has provided homeowners inadequate coverage, particularly smoke damage, often providing low payouts and delaying essential services like professional cleaning.
"The California FAIR Plan is meant to be a final solution for many Californians, but even an organization intended to provide peace of mind with insurance coverage has failed to live up to that responsibility," said Michelle Meyers, attorney at Singleton Schreiber LLP. "The California FAIR Plan is anything but 'fair,' and it owes its claimants the coverage they were promised."
The lawsuit seeks recovery of general damages and other monetary damages, including foreseeable, consequential, and incidental damages for diminution in value, loss of use, and out-of-pocket expenses, including interest, in an amount to be determined at trial. Additionally, the plaintiff seeks punitive and exemplary damages, costs of suit, and reasonable attorney’s fees incurred in this action.
Singleton Schreiber is a client-centered law firm, specializing in mass torts/multi-district litigation, fire litigation, personal injury/wrongful death, civil rights, environmental law, insurance bad faith, and sex abuse/trafficking. Over the last decade, the firm has recovered more than $3 billion for clients who have been harmed and sought justice. The firm also has the largest fire litigation practice in the country, having represented over 30,000 victims of wildfire, most notably serving plaintiffs in litigation related to the 2025 Rowena Fire, the 2025 Eaton and Hurst Fires, 2025 Moss Landing Battery Plant Fire, 2023 Maui wildfires, the Colorado Marshall wildfire, the Washington Gray wildfire, several California wildfires, and others.
