State Farm Targets NV Energy Over Caughlin Fire

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RENO, Nev. (AP) - State Farm Insurance plans to seek action against NV Energy for claims stemming from a November 2011 wildfire in Reno sparked by arcing power lines.

The wind-driven fire destroyed 26 homes and damaged 17.

The Reno Gazette-Journal reports State Farm has sent letters to customers notifying them that the company will file action against NV Energy through a long-standing industry practice known as subrogation.

It's a legal action that can be taken by insurance companies against a third party they believe to be responsible for damage sustained by customers.

State Farm declined to comment about specifics because it has yet to be filed.

A NV Energy spokesman says the company doesn't comment on pending lawsuits.