A Multnomah County Circuit Court jury in Oregon found electricity provider PacifiCorp liable for causing four wildfires on Labor Day 2020 that consumed about 5,000 structures in western and southern Oregon.
Jurors found the Berkshire-Hathaway owned company liable for more than $73 million in total to the 17 plaintiffs in the case for losses related to the Santiam Canyon fires east of Salem, the Echo Mountain Complex near Lincoln City, the South Obenchain fire near Eagle Point and the Two Four Two fire near the southwest Oregon town of Chiloquin.
According to the Associated Press, most of the 17 plaintiffs who sued PacifiCorp will receive $4.5 million and others $3 million for emotional distress, and the jury will begin testimony on punitive damages. The jury also brought liability finding to a broader class of property owners of 2,500 properties against PacifiCorp, potentially bringing an award of upwards of $1 billion.
The wildfires, known as the 2020 Labor Day Wildfires, occurred due to drought conditions and winds at sustained speeds of 20-30 miles mph, with gusts up to 50-60 mph on Sept. 7 and 8. The fires quickly grew to five megafires, burning over 100,000 acres, and 12 other fires burning over 1.2 million acres.
Arguments
According to Oregon Public Broadcasting (OPB), attorneys for the plaintiffs showed to the jury PacifiCorp’s internal documents where company officials were concerned about the weather and that their transmission lines were near the start of the fires.
Lawyers for the plaintiffs also used 911 calls and eyewitness testimony that high winds knocked down trees and branches, sparking lines and starting other fires.
PacifiCorp argued the branches couldn’t have sparked the lines and used testimony from experts and company employees that the company is a leader in wildfire mitigation.
After touring the Beachie Creek and Santiam burn areas, Sens. Ron Wyden (D-OR) and Jeff Merkley (D-OR) sent a letter to U.S. Forest Service Chief Vicki Christiansen and Oregon Department of Forestry State Forester Peter Daugherty looking into the role of power lines in the cause of the fire. They also acknowledged the possible role of lightning in the Beachie Creek Fire.
OPB stated lawyers and defense experts pointed to the lightning-caused Beachie Creek Fire as the culprit. The fire started weeks before Labor Day and burned through Santiam Canyon. The majority of claims against PacifiCorp came from residents in Santiam Canyon, where defense lawyers argued the company does not have equipment where they are accused of causing damage.
In a statement after the verdict, PacifiCorp said they were the first utility to develop a wildfire mitigation plan and it continues to evolve and grow.
“We continue to lead in wildfire mitigation, and our plan continues to grow and evolve—which includes in-house emergency management, meteorology and data science teams and features the installation of over 300 weather stations, grid hardening, fire-risk modeling software and an enhanced vegetation management program,” the statement said.
The utility company kept power lines live, arguing that keeping electricity flowing enabled first responders and evacuees to have the tools to stay safe, and the Oregon Public Utility Commission (PUC) advises shutting off the lines as a last resort.
Lawyers for PacifiCorp also argued climate change and the weather events were to blame for the fires.
“Wildfire remains a complex issue and the threat of wildfire continues to grow dramatically in Oregon and the West,” PacifiCorp said in the statement. “Escalating climate change, challenging state and federal forest management, and population growth in the wildland-urban interface are substantial factors contributing to growing wildfire risk. These systemic issues affect all Oregonians and are larger than any single utility.”
Next step
Shortly after the verdict, the jury heard arguments in the punitive damages phase.
OPB stated the court proceeding would also head into a second phase, allowing thousands of other property owners to get financial relief.
A website was established showing maps of the burn areas in the four fires and property owners within the burn areas should have received a notice of the class action in the mail.
PacifiCorp said they will appeal the verdict, “and we are confident we will prevail.”
PacifiCorp settled a lawsuit brought by two homeowners in the Archie Creek Wildfire in November 2022 before it went to trial.
OPB cautioned that PacifiCorp could request a rate hike from the PUC to recover costs from “unexpected, extraordinary events.”
“We have no information about whether or when PacifiCorp may decide to file with the PUC to recover any costs associated with this litigation through customer rates,” agency spokesperson Kandi Young said in an email to OPB. “The PUC would scrutinize any such request in an open public process.”
The PUC approved a 14.8% rate increase for all customers beginning Jan. 1 “for power costs, which are markedly higher due to market volatility, and a general rate case filing for non-energy related costs, including costs to mitigate wildfire risk.” — Charles Wallace, WLJ editor
