Report blaming PG&E for fire won’t help civil suit

Plaintiffs' attorneys hope a new report fingering the Pacific Gas & Electric Co. for the deadliest and most destructive wildfire in California history will expedite a plan in bankruptcy court to compensate victims.

But the report by California Department of Forestry and Protection is unlikely to persuade a U.S. district judge to lift a stay on civil proceedings against the utility, attorneys said Thursday.

"News of the Cal Fire report should generate an unprecedented sense of urgency that's been lacking thus far in the bankruptcy proceedings," said plaintiffs' attorney Frank Pitre of Cotchett Pitre & McCarthy LLP in Burlingame.

"Unfortunately, to my great frustration, the news of the Cal Fire report will not assist our ability to lift the stay," Pitre said.

The Butte County district attorney's office is reviewing the full report, which has not been publicly disseminated. Prosecutors have not said whether they plan to file charges.

The Cal Fire report issued Wednesday found last year's Camp Fire in Butte County was caused by electrical transmission lines owned and operated by PG&E. The Nov. 8 blaze killed 85 people and scorched 153,336 acres.

The Cal Fire finding wasn't a surprise. PG&E said in its bankruptcy filing it expected to be found responsible for the fire. PG&E, which already faced in excess of $30 billion in liability from other fires, filed for bankruptcy in January. In Re: PG&E Corporation, 19-30088 (N.D. CAL., Bankruptcy Ct., filed Jan. 29, 2019).

The bankruptcy filing brought to a halt civil proceedings filed in San Francisco County Superior Court by fire victims.

Attorneys representing PG&E did not respond to requests for comment. The utility released a statement stating it remains focused on supporting victims through the recovery process and acknowledged Cal Fire's announcement was consistent with PG&E's previous statements.

"We have not been able to form a conclusion as to whether a second fire ignited as a result of vegetation contact with PG&E electrical distribution lines as Cal Fire also determined," the statement read. "We remain committed to working together with state agencies and local communities to make our customers and California safer."

PG&E proposed in May a $105 million fund for housing-related assistance for wildfire victims with "urgent needs," according to the filing in bankruptcy court.

The Cal Fire report is inadmissible in court proceedings and is considered hearsay as first responders and investigators would have to be deposed, according to fire victim plaintiffs' attorney Amanda Riddle, partner at Corey, Luzaich, de Ghetaldi & Riddle LLP Law in Millbrae.

"The report doesn't change anything but will give victims more support knowing what the cause was," said Riddle. "PG&E never truly denied they caused the fire. They put aside millions [of dollars] for victims, which speaks volumes."

Most utilities file for Chapter 11 protection when liabilities exceed assets and say it's the most expeditious way to resolve claims, which isn't the case for PG&E, according to fire victim plaintiffs' attorney Mike Danko of Danko Meredith law firm.

"Cal Fire's report doesn't help lifting the stay in the civil case but might help in a small way opposing motion to extend the exclusivity period," he noted.

Michael J. Aguirre of Aguirre & Severson LLP, a former San Diego city attorney who has sued investor-owned utilities linked to wildfires and battled San Diego Gas & Electricity Co. over the 2007 wildfires, noted that trying to lift the stay in the Camp Fire civil case should be the primary goal.

At the end of the day, there's no real enforcement for fire safety rules and the bigger picture should be to push for decentralizing the generation, transportation and distribution of electricity to reduce fire risk, said Aguirre, who is not involved in the Camp Fire case.

"The report may be a basis to say they have strong evidence that PG&E is responsible for these fires, which they can prove, then get money owed to them," Aguirre said. "Unfortunately plaintiffs can't do anything right now. PG&E is going to just tread water for now."