Preliminary testing of sprouts of redwood trees growing in Big Sur and on the UC Berkeley campus have proven positive for spores of Phytophthora ramorum, the pathogen responsible for sudden oak death. It is still not known whether P. ramorum actually infects and kills the trees or whether redwoods are simply acting as secondary hosts. If verified, this discovery could have negative implications for the timber industry in the form of quarantines and other regulatory restrictions aimed at halting the microbe's spread.
Sudden oak death was first detected in Marin County in 1995, and has since killed tens of thousands of black oak, coast live oak, and tan oak trees from Monterey to southern Oregon.
These articles also state that verification is still required, and that conclusive confirmation of redwood host suitability can only be achieved through laboratory experimentation on seedlings.
For additional information, see http://sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2002/01/08/MN180300.DTL