District judge appointed to help determine PG&E wildfire liability

A federal judge in San Francisco will assist in determining the extent of the Pacific Gas & Electric Corp.'s wildfire liability, according to court filings.

The Northern District Executive Committee appointed U.S. District Judge James Donato, who will be assisted by U.S. Magistrate Judge Sallie Kim.

U.S. Bankruptcy Judge Dennis Montali, who is overseeing PG&E's Chapter 11 reorganization, recommended a district judge participate to streamline the process and rule on questions he is not authorized to answer.

Montali cited the June 30, 2020 deadline imposed by AB 1054 for PG&E to qualify for a multi-billion-dollar wildfire fund as imposing "very difficult time limits on all parties" in his recommendation issued Thursday.

PG&E will file a reorganization proposal by Sept. 9. In re: PG&E Corp.

Montali posed logistical questions to Donato -- including what aspects of the estimation process should come first and the schedule and method for approaching the proceedings.

Donato will also determine whether personal injury and wrongful death claims should include damages due to emotional distress -- an inquiry only a district judge is authorized to answer. The question is potentially worth billions of dollars.

Concerned about the time line imposed by the state legislation, Montali proposed at an August hearing an unprecedented procedure to handle the entirety of the estimation process.

Montali said he would agree to try all aspects of the estimation trial to decide whether PG&E negligently caused the fires and if so, how much it would owe to plaintiffs.

But the committee representing wildfire victims argued Montali should instead allow the Tubbs fire trial in San Francisco County Superior Court to proceed. Plaintiffs' attorneys predicted that state court trial, over the fire that killed 22 people, will wrap up by the end of January or early February.

-- Winston Cho