GATES, Oregon — PacifiCorp, a unit of Warren Buffett’s Berkshire Hathaway, has been ordered by an Oregon jury to pay over $42 million to 10 victims of the devastating wildfires that occurred on Labor Day 2020. This verdict is the latest development in a series of litigations that are expected to result in the electric utility being held accountable for billions of dollars in damages.
The jury’s decision last June found PacifiCorp liable for negligence in failing to cut power to its 600,000 customers despite warnings from top fire officials. The jury concluded that the company acted negligently and willfully and should be liable for punitive and other damages. This ruling applied to a class of up to 2,500 property owners.
Tuesday’s decision marked the third verdict applying last year’s ruling to a specific group of plaintiffs. In a separate case, a jury awarded $85 million to nine plaintiffs, and the initial jury that found PacifiCorp liable granted approximately $90 million to 17 homeowners named as plaintiffs.
Although thousands of other class members are still waiting for their trials, it is expected that both sides will engage in mediation in an attempt to reach a settlement. PacifiCorp has stated that it is appealing the decision and has already settled hundreds of claims related to the fires. The company claims its commitment to settling all reasonable claims for actual damages under Oregon law.
The fires that occurred on Labor Day 2020 were among the most destructive natural disasters in Oregon’s history. The fires took the lives of nine individuals, burned over 1,875 square miles, and destroyed more than 5,000 homes and structures.
One of the recipients of Tuesday’s award is the Upward Bound Camp for Persons with Special Needs in Gates, Oregon. The camp’s executive director testified that a fire started on its property after a power line fell, resulting in the destruction of the camp’s only indoor spaces able to accommodate campers. As a result, the nonprofit organization is unable to hold camps during the majority of the year.
In addition to the legal action taken by the victims, the U.S. government is considering suing PacifiCorp to recover nearly $1 billion in costs associated with the 2020 wildfires in southern Oregon and northern California. However, both parties are attempting to negotiate a settlement.
Berkshire Hathaway, based in Omaha, Nebraska, estimates that its utilities face at least $8 billion in claims due to all the wildfire lawsuits filed in Oregon and California. It is important to note that the damages in some cases could be doubled or even tripled, and some lawsuits do not specify a particular dollar amount.