US Judge James Donato will decide challenge to wildfire fund

A U.S. judge appointed to calculate the extent of Pacific Gas & Electric Co.'s wildfire liabilities now has a new assignment: Presiding over a lawsuit questioning the utility's conduct and the state fund that bails utilities out.

The executive committee of the Northern District of California signed off on the judicial reassignment Friday after having determined it would be easier to have Judge James Donato rather than Judge Edward M. Chen hear the case that involves similar facts, and avoid any conflict or duplication of labor.

The switch comes a day after Chen mulled over referring the matter to Donato.

Plaintiffs' counsel Michael J. Aguirre and Maria Severson of Aguirre Severson LLP said they were sad to see Chen go, but noted they look forward to arguing before Donato, who is familiar with the complexities in PG&E's wildfire liabilities litigation and reorganization. In re: PG&E Corp., 3:19-CV-05257 (N.D. Cal., filed Aug. 22, 2019)

All matters presently scheduled for hearing are vacated, and should be re-noticed for hearing before Donato, according to the order signed by Chief Judge Phyllis J. Hamilton for the executive committee. Briefing schedules and other deadlines remain unchanged.

Aguirre in July challenged the validity of Assembly Bill 1054, which was enacted July 12, claiming the wildfire fund it created was a bailout scheme by legislators to make customers pay for liabilities they did not cause. The lawsuit also questions whether the driving force behind AB 1054 was the political contributions made by utilities. Cannara v. California Dept. of Water Resources Director Karla Nemeth, 3:19-CV-04171 (N.D. Cal., filed Jul. 19, 2019)

Aguirre filed a motion in August to have U.S. District Judge William Alsup hear the case. Alsup is overseeing PG&E's criminal probation linked to the 2010 pipeline rupture in San Bruno.

Alsup declined to take the case.

Mike S. Danko, partner at Danko Meredith APC, who is uninvolved in the matter but representing plaintiffs suing PG&E over the Northern California fires, said reassignment made sense, but that Donato was an interesting choice.

After all, the case seems better suited for Alsup, who, "by and large has been focusing on the propriety of PG&E's conduct," said Danko.

"Judge Donato's role on the other hand has been limited to procedural matters to have to be resolved for PG&E to exit bankruptcy," he said.

-- Gina Kim