The Los Angeles Department of Water and Power and the City of Los Angeles have agreed to enter settlement talks with victims of the Palisades Fire, attorneys for the plaintiffs announced Tuesday, Aug. 25.

The mediation marks the first formal move toward a potential settlement in the mass tort case brought by fire victims against the city and its utility. The Palisades Fire, which started Jan. 7, 2025, killed 12 people, burned 23,448 acres and destroyed more than 6,800 structures across Pacific Palisades and Malibu. No one has been held liable.

Alexander "Trey" Robertson, one of the lead plaintiffs' attorneys, confirmed the agreement in an interview with Bloomberg Law on Wednesday, Aug. 26.

"Anytime a defendant agrees to talk potential settlement, it's a positive sign," Robertson said. "We don't know if the case is going to settle or not, or if the city is going to be able to raise enough money …"

Robertson said the first mediation session is set for early October. Circling the News, the Pacific Palisades outlet where reporter Sue Pascoe broke the story Tuesday, reported the session would likely occur in September. The discrepancy was not explained.

Plaintiffs' lawyers said other defendants may join the mediation process, though no additional parties have been confirmed.

The city hired Munger Tolles & Olson LLP to defend LADWP in the fire lawsuits. Alexander R. Wheeler, a Parris Law Firm attorney who lost his own home in the fire and represents other victims, called Munger Tolles "one of the best money could buy," according to PJ Media.

Spencer Pratt, a Pacific Palisades resident and plaintiff in the lawsuit, welcomed the news on X on Tuesday, calling it "an overdue and positive development."

@spencerpratt: "BREAKING: LADWP and the City of LA are finally coming to the table to discuss mediation in the lawsuit with the Palisades Fire victims. This is an overdue and positive development."

Neither LADWP nor the City of Los Angeles has publicly commented on the mediation agreement. The next scheduled session is set for early October, and plaintiffs' attorneys have said additional defendants could still join the talks.