Allegations of Collusion in PacifiCorp Wildfire Settlements, Buffett’s Utility Under Scrutiny

According to Reuters, the allegations came to light when PacifiCorp and the three law firms dismissed claims of collusion as “false, preposterous and desperate” on Friday. This dispute is likely to complicate the utility’s ongoing efforts to settle claims related to wildfires that scorched several hundred thousand acres across Oregon and northern California.

Victims of the fires have accused the Portland-based utility of negligence, alleging that PacifiCorp failed to shut off power lines during a windstorm, exacerbating the fires’ destruction. This claim has become a central point of contention in the litigation efforts.

The controversy intensified with a court filing on Thursday from Edelson PC, Keller Rohrbach, and Stoll Berne. These firms stated they were caught off guard by PacifiCorp’s announcement of a $178 million settlement with 403 victims of the Beachie Creek and Echo Mountain Complex fires on June 3. They argue that this settlement is significantly lower than a prior $299 million agreement secured by different firms for victims of the Archie Creek fire, particularly in terms of compensation for pain and mental suffering.

Adding to the complexity, the class-action firms pointed out that the June 3 settlement was announced just a week after mediation efforts had collapsed. They accused the three law firms of engaging in aggressive tactics, such as cold-calling and sending out mass mailings, to persuade fire victims to agree to the settlement. The class-action firms argued that these actions suggest a coordinated effort to benefit PacifiCorp by settling claims at an unfairly low rate.

In response, PacifiCorp suggested that the class-action firms are attempting to convince their clients to hold out for higher settlements, potentially inflating legal fees in the process.

Source: Reuters