An Oregon state jury has ruled against PacifiCorp, an electric utility owned by Warren Buffett’s Berkshire Hathaway, ordering the company to pay a minimum of $62 million to nine homeowners whose properties suffered damages in the devastating wildfires that struck the state in 2020.
Verdict Details
Based in Portland, where PacifiCorp is headquartered, the jury granted the homeowners nearly $6.3 million to cover property damage and other economic losses. Additionally, a substantial $56 million was awarded for emotional distress, pain, and suffering. The trial, which commenced on January 9 in Multnomah County Circuit Court, is the first of at least two scheduled this year to establish a precedent for determining the compensation owed by PacifiCorp to Oregon residents affected by the 2020 wildfires.
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Scope of Liability
The fires during Labor Day weekend in 2020 caused an estimated $1.9 billion in property damage and other losses, affecting around 2,400 properties, according to state estimates. With approximately 5,000 homeowners and business owners filing a class action against PacifiCorp in 2020, the company faces potential liabilities running into billions of dollars.
Company Response and Appeal
Despite the jury’s decision, PacifiCorp remains steadfast in its position, intending to appeal the verdict. The company’s spokesperson mentioned ongoing settlements for separate claims related to the fires and expressed a commitment to resolving other “reasonable” claims.
Legal Precedent
This ruling follows a previous jury decision in June, which found PacifiCorp liable for the fires, determining gross negligence in the failure to shut down power lines during high winds that ignited the wildfires. Punitive damages, set at 25% of compensatory damages, were established in the earlier trial and applied to all plaintiffs, potentially boosting overall recovery for victims.
Company’s Defense
PacifiCorp maintains its defense against allegations, asserting that power shutoffs were unnecessary based on the information available to them. The company also contends that plaintiffs failed to establish its equipment as the cause of the wildfires.
Victim Testimonies
During the trial, victims shared harrowing experiences of escaping the flames. In his late 60s, one victim recounted jumping from a 30-foot cliff into a river with his wife and cat to evade the Santiam Canyon fire. Other victims described walls of flames from fires like the Echo Mountain fire in Lincoln County and the South Obenchain fire in Jackson County.
Compensation Requests
Plaintiffs’ attorneys sought at least $5 million in damages for pain and suffering and other non-economic harms for each plaintiff, in addition to property damage costs. PacifiCorp’s defense proposed that awards of $2 million or less per plaintiff would be sufficient compensation for non-economic harms.
Devastation in 2020
The wildfires in Oregon during 2020 scorched approximately 1,900 square miles (1.22 million acres), destroying over 5,000 structures and resulting in at least nine casualties.
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