A California federal bankruptcy judge ruled that California wildfire claims against PG&E must be filed by victims by Oct. 21, 2019.

U.S. Bankruptcy Judge Dennis Montali said, “We can’t hold up the train for the last holdout” because in nearly every case, someone either is unreachable or simply decides not to file.

Attorneys for wildfire victims attempted to prolong the deadline until Jan. 31, 2020, because many victims are still suffering from the trauma of the fires and may still be homeless as a result of the tragedy. Because any mailing addresses on file could be outdated due to the loss of homes, the lawyers said it could take more time to ensure everyone affected is contacted.

Fire victims’ lawyers expressed concern that too many people affected by the fires had not yet reached out to any lawyer for help yet.

Judge Montali said he didn’t think there was any good reason to give wildfire victims any longer than Oct. 21 to file a claim.

According to the San Francisco Chronicle, the claims must originate before Jan. 29, 2019, which is when PG&E filed for Chapter 11 bankruptcy protection. At the time of filing, the company estimated its liabilities due to wildfires was approximately $30 billion.

Planned Outreach to California Wildfire Victims

According to court filings, PG&E says it will run notices in national and local newspaper ads, television commercials, radio announcements, social media, and other internet outlets at an estimated cost of $2.5 million.

PG&E’s electrical equipment was deemed the cause of the Tubbs Fire that resulted in 22 deaths in October 2017. The areas of Sonoma and Napa counties also lost more than 5,600 buildings and 36,000 acres were scorched.

PG&E’s equipment also was determined to be the cause of the Camp Fire, which is now known as California’s most fatal and devastating fire ever. In Butte County, 85 people died and lmost 14,000 homes were lost, according to figures provided by the California Department of Forestry and Fire Protection.

PG&E requested to be allowed to pay $100 million to help with California wildfire victims’ most urgent needs, and Judge Montali granted that request. In addition, a coalition of 14 of the state’s municipal agencies agreed to a $1 billion PG&E settlement regarding expenses that arose from the wildfires.

Attorneys for PG&E said the company is trying to move its bankruptcy proceedings at a faster clip because California Gov. Gavin Newsom said PG&E must be out of bankruptcy by June 30, 2020, if the company wants to participate in California’s new wildfire insurance fund program.

The governor has proposed the fund to protect both ratepayers and fire victims. The fund, which could amount to nearly $21 billion, would be designed to provide stability to PG&E’s investors even if PG&E’s equipment is found responsible for a future wildfire. If found responsible for sparking a future wildfire, PG&E would still be required to pay for the resulting wildfire damages.

In the meantime, PG&E announced it will make use of intentional blackouts starting this summer. According to The Press Democrat, the blackouts could last more than 48 hours and affect 5.4 million customers who receive power from 31,000 miles of power lines.

This article is not legal advice. It is presented
for informational purposes only.