Compensation for Pacific Gas and Electric Fires May Take a Decade

After a series of California fires was linked to Pacific Gas and Electric Co., the company filed for bankruptcy and set aside money to compensate victims of the fire.

However, the U.S. bankruptcy judge overseeing the company’s Chapter 11 reorganization plan recently said that the company’s deal might take a decade or even longer to properly compensate victims of Pacific Gas and Electric fires.

U.S. Bankruptcy Judge Dennis Montali expressed concern that the utility company’s proposed $11 billion deal made with insurers might take far too long to compensate victims of the Pacific Gas and Electric fires in Northern California. Judge Montali told attorneys that the proposed deal “sounds like a bad option.”

“I have to decide whether this is a good deal,” Judge Montali said at a recent hearing in San Francisco. The deal might take between 10 and 12 years for wildfire victims to receive payouts. For victims whose homes have been burned down, or who have had their property damaged, the payouts may come far too late to prevent serious financial damage.

Agreeing to the proposed deal would require victims of the fires to sign a release saying that the deal sufficiently makes them whole—meaning that they agree to say they have been sufficiently compensated for their loss, even though that compensation may take a decade to arrive.

Another concern here is that some victims may spend years litigating their claims—and, by the time a decision is reached, the funds set aside in PG&E’s dedicated trust may have been long dried up.

PG&E’s proposed plan specifies that the $11 billion settlement with insurance companies won’t prevent policyholders from filing their own litigation against insurers.

An attorney for tort claimants said that victims desperate for compensation may feel they have no choice but to agree to PG&E’s plan, even if they will not receive all the compensation their owed for years.

Judge Montali noted in response that “hard decisions are still decision.”

PG&E and California Wildfires

PG&E filed for Chapter 11 bankruptcy in January 2019, after being hit with billions of dollars in potential liabilities due to its alleged involvement in causing several major California wildfires in 2017 and 2018. The wildfires killed 130 people in total, as well as destroyed billions of dollars’ worth of property.

PG&E recently attempted to change California’s law requiring utility companies to pay for wildfire damage caused by their equipment. The California Public Utility Commission released a report in early December finding that PG&E failed to adequately inspect and monitor its equipment, leading to 2018’s deadly Camp Fire. On top of the fatalities, the fire also destroyed the town of Paradise, according to The New York Times.

PG&E’s attorney said that the company believes it is a “very, very, very reasonable deal.”

If you were affected by one of the recent Pacific Gas and Electric fires in California, the deadline for making PG&E fire claims has passed, but you may be able to receive further compensation. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation. Even if you have already received compensation, you may not have received all the compensation you’re due.

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