Mill City, Oregon – PacifiCorp, a subsidiary of Berkshire Hathaway, has been ordered by an Oregon jury to pay over $42 million to 10 victims of devastating wildfires that took place on Labor Day in 2020. This ruling is part of ongoing litigation in which the electric utility could potentially be liable for billions of dollars in damages. Last year, a jury found PacifiCorp negligent for failing to cut power to its 600,000 customers despite warnings from fire officials, making it liable for punitive and other damages. The recent decision marks the third verdict to apply this 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 negligent granted approximately $90 million to 17 homeowners. While thousands of other class members are still waiting for their trials, there is also an expectation for mediation to occur, potentially leading to a settlement. PacifiCorp is currently appealing these verdicts. However, the utility claims to have settled numerous claims related to the fires and expresses its commitment to resolving all valid claims under Oregon law.
The wildfires in Oregon in 2020 were among the state’s most destructive natural disasters, resulting in nine fatalities, burning over 1,875 square miles, and destroying more than 5,000 homes and structures. Among those included in the recent award are the Upward Bound Camp for Persons with Special Needs in Gates, Oregon. The camp’s executive director testified that a fire started on the campgrounds after a power line fell. The damages to the camp’s facilities have severely impacted their ability to hold camps throughout the year.
Furthermore, the U.S. government is considering suing PacifiCorp to recover nearly $1 billion in costs related to the 2020 wildfires in Oregon and California. The utility is currently engaged in negotiations to reach a settlement in this matter. Berkshire Hathaway, based in Omaha, Nebraska, estimates that their utilities face at least $8 billion in claims across all the wildfire lawsuits filed in Oregon and California. It is important to note that the damages in some of these cases could potentially be doubled or even tripled, and some lawsuits do not specify a dollar amount.
PacifiCorp’s legal battles and the significant financial liabilities it may face highlight the concerning risk for utilities operating in regions prone to extreme weather conditions. These utilities could potentially become de facto insurers of last resort in an environment of increasingly frequent extreme weather events. The ongoing legal proceedings and potential settlements will likely have broader implications for the industry and could influence investment decisions in regions prone to wildfires and other natural disasters.
As the legal battles continue, the victims of the devastating wildfires in Oregon are seeking justice and fair compensation for the losses they have endured. The rulings against PacifiCorp and the potential liabilities it faces serve as a reminder of the importance of ensuring the safety and reliability of electric utilities, particularly in areas at high risk for wildfires and other catastrophic events.