(Bloomberg) — Berkshire Hathaway Inc.’s PacifiCorp is asking an appeals court docket to throw out a 2023 jury verdict in a wildfire class-action case that has uncovered the corporate to billions of {dollars} in losses.
PacifiCorp, which calls itself the most important grid operator within the western US, has been underneath mounting strain after being blamed for igniting a collection of wildfires that devastated Oregon in September 2020. Within the first main wildfire case in opposition to a utility to go to a trial, the corporate was discovered grossly negligent for failing to close off electrical energy in its service areas forward of dangerously dry and windy climate.
Awards of $645 million for 119 victims — and the prospect that damages might in the end exceed 10 occasions that quantity — have rattled PacifiCorp bondholders, upended the corporate’s credit standing and prompted a warning from the utility final yr that it could must shut operations in Oregon.
PacifiCorp’s attorneys are scheduled to current arguments Wednesday to the Oregon Court docket of Appeals. They’re asking a three-judge panel to rule that the case by no means ought to have proceeded as a category motion on behalf of 1000’s of particular person hearth victims. The utility argued in court docket filings that the category improperly grouped collectively property house owners affected by completely different wildfires throughout distant areas.
Legal professionals for the victims have countered that the trial choose appropriately decided that PacifiCorp’s legal responsibility might be resolved utilizing frequent proof regardless of variations amongst particular person victims’ property losses.
PacifiCorp additionally contends that an Oregon statute bars plaintiffs from recovering non-economic damages for wildfire-related property losses. However plaintiffs’ attorneys have defended the jury awards of $4 million per sufferer for emotional misery, on common, as legally permitted.
The corporate faces an accelerated schedule for claims by about 1,400 remaining hearth victims within the class motion to be resolved this yr and subsequent. A ruling from the appeals court docket is anticipated in six months to a yr.
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