PacifiCorp to Pay $299 Million in Settlement for Oregon Wildfires
PacifiCorp Settles Lawsuit for Oregon Wildfires
Electricity utility PacifiCorp will pay $299 million to settle a lawsuit brought by 463 individual plaintiffs who were harmed by devastating wildfires in southern Oregon in 2020. The settlement comes after the utility lost a similar lawsuit in June for wildfires in other parts of the state. PacifiCorp has faced several lawsuits from property owners and residents who claim the utility negligently failed to shut off power during a windstorm despite warnings, resulting in multiple blazes.
The Severity of the Wildfires
The wildfires in southern Oregon in 2020 were among the worst natural disasters in the state’s history. They caused the loss of nine lives, burned over 1,875 square miles, and destroyed more than 5,000 homes and structures.
The Settlement
The settlement ends three years of legal disputes concerning the Archie Creek fire, which devastated communities along the North Umpqua River. The settlement amount of $299 million is smaller compared to the damages awarded in June to a different group of homeowners affected by four other fires in the state. The verdict in the June case ordered PacifiCorp to pay over $70 million to 17 homeowners, with additional damages yet to be determined for a broader group of victims.
Avoiding Further Damages and Trials
The announced settlement minimizes the utility’s risk of facing trial and being ordered to pay additional damages, including emotional distress. PacifiCorp plans to appeal the June verdict, and more trials are scheduled for next year to determine damages for additional plaintiffs. The settlement amounts align with the estimates made by PacifiCorp and accounting reserves for the wildfires.
Plaintiffs’ Reaction
The plaintiffs’ lawyers did not provide specific comments on the settlement but commended PacifiCorp for choosing to settle. They congratulated the company’s new CEO and General Counsel for doing the right thing for the ratepayers who lost their homes during the Labor Day 2020 fires. The lawyers credited the settlement to good lawyers and good corporate leadership.
Potential Future Lawsuits
More lawsuits could be on the horizon, as some government entities have indicated considering legal action against PacifiCorp. The damages sought in the current lawsuits total approximately $8 billion, excluding punitive damages. PacifiCorp has requested state regulators to limit its liabilities to actual damages, and a decision is yet to be made.
