Judge pauses Tubbs fire trial preparation for 15 days in wake of PG&E settlement

SAN FRANCISCO -- The state court judge handling a trial over accusations Pacific Gas & Electric Co. equipment caused a historically destructive 2017 wildfire agreed Tuesday to pause proceedings in the wake of the utility's landmark $13.5 billion settlement with victims.

At the request of both sides, San Francisco Superior Court Judge Andrew Y.S. Cheng continued hearings in the Tubbs fire trial for 15 days as approval of the deal would resolve liability.

Khaldoun A. Baghdadi of Walkup, Melodia, Kelly & Schoenberger, among the lead attorneys representing wildfire victims, argued "special circumstances" have arisen to halt the trial against PG&E by a group of elderly and ill Sonoma County residents.

Gov. Gavin Newsom and U.S. Bankruptcy Judge Dennis Montali can reject the settlement if it doesn't anchor a confirmable plan to get PG&E out of Chapter 11 reorganization or comply with requirements of a state law to participate in a multi-billion-dollar wildfire mitigation fund.

The agreement is terminated if Newsom does not sign off on it by Dec. 13.

Montali will consider approving the deal at a Dec. 17 hearing. In re: PG&E Corp., 19-30088 (N.D. Cal., filed Jan. 31, 2019).

Newsom's office declined to comment.

PG&E and the committee representing wildfire victims tentatively reached the landmark settlement on Dec. 6. It resolves all legal claims, including those over the Tubbs fire, which state investigators said was caused by a private residence's electrical system.

The utility did not admit liability.

If approved, the deal circumvents proceedings in state and federal court.

A trial was scheduled to start in January over the Tubbs fire, which PG&E argued was not its fault. The fire killed 22 people and torched thousands of acres in Sonoma and Napa counties. Jury selection was set for Jan. 7. In re: PG&E Corporation and Pacific Gas and Electric Company, 10-CV05257 (N.D. Cal., filed Aug. 22, 2019).

U.S. District Judge James Donato was also preparing to estimate the amount of the utility's liability for the other wildfires in a process unique to bankruptcy court. PG&E and the group representing victims have similarly asked to pause proceedings until Dec. 16. In re: PG&E Corporation and Pacific Gas and Electric Company, 19-CV05257 (N.D. Cal., filed Aug. 22, 2019).

Both sides in the state court proceedings supported keeping a case management conference scheduled for Dec. 27 on calendar in case the settlement is not approved.