PacifiCorp reaches settlement with 1,434 plaintiffs related to the 2020 Labor Day Fires
PORTLAND, Ore. — PacifiCorp has reached a $150 million settlement with 1,434 plaintiffs associated with Labor Day 2020 fires. Since 2020, the company has settled nearly 4,200 wildfire claims for $1.6 billion, which represents approximately 70 percent of individual claims in California and Oregon. The vast majority of the remaining claims are a part of the James class action litigation.
“We are doing the responsible thing and we are gratified to resolve these claims to provide plaintiffs with some closure to move on,” said Ryan Flynn, Pacific Power president. “The process that led to this settlement represents the fairest and most efficient way to resolve wildfire litigation. Class action litigation is costly, complex, takes several years to run its course and is a barrier to reasonable outcomes.”
PacifiCorp remains willing to settle all outstanding reasonable claims related to the Echo Mountain, 242 and South Obenchain fires. Nearly 20 percent of plaintiffs in the James class action have now settled with PacifiCorp.
Due to the compelling findings in the Oregon Department of Forestry report that concluded PacifiCorp’s assets did not initiate or contribute to the Beachie Creek/Santiam Canyon fire, the company will continue to actively defend against those claims.
Plaintiffs in the settlement are represented by the Warren Allen, Swigart Law Group and Spreter | Petiprin law firms.
“We are glad to have reached reasonable settlements with PacifiCorp for our current clients,” said George McCoy, an attorney at Warren Allen. “Those outcomes reflect a shared commitment with PacifiCorp to resolving disputes through a principled approach that serves affected Oregon communities. This matter will not be resolved through targeted or punitive legislation. It will not be resolved through a drawn-out trial process. Rather, it will be resolved by continuing the collaborative problem-solving approach used to reach this agreement that benefits Oregonians. We will continue our efforts to help rebuild Oregon communities recovering from the 2020 Labor Day wildfires.”
The settlement not only provides relief for those impacted by the Labor Day 2020 fires, but is also a critical step in stabilizing the financial health of the company and ensuring the delivery of safe and reliable power to over 2 million customers across six-states, including 630,000 customers in Oregon.
“This settlement between plaintiffs’ counsel and PacifiCorp demonstrates that the parties can come to the table and work out agreements to compensate Oregonians impacted by wildfire,” said Oregon Representative Pam Marsh, D-Ashland. “We need our utilities to keep the lights on and to make continued investments building out the electrical grid to support growth throughout our state. To do that, they must be in a place where the market and investors see them as stable.”
The parties engaged Judge Peter Lichtman (Ret.) of Signature Resolution to preside over the negotiations that resulted in this settlement.
"For the last five-plus years, I have served as Special Master and Mediator in Wildfire matters that have unfortunately affected the Southwestern Region of the United States, inclusive of Oregon,” said Judge Lichtman. “In mediating this and other Labor Day 2020 fire cases, I found PacifiCorp to be professional, engaged, and genuinely committed to resolving valid claims that were presented to it. PacifiCorp has consistently carried out its settlement negotiations in good faith, making sure that the outcomes are fair and reasonable to the affected families.”
Today’s settlement follows other recent settlements between PacifiCorp and more than 90 Oregon wineries and timber companies, reached over the past month with the assistance of Judge Karsten H. Rasmussen (Ret.) a retired Lane County Circuit Court Judge who served 19 years on the bench, including six as Presiding Judge. Judge Rasmussen also previously served as a Democratic state senator representing rural Lane and Douglas counties.
“I have mediated hundreds of cases stemming from the Labor Day 2020 fires,” said Judge Rasmussen. “I can confidently say that in every case involving PacifiCorp, PacifiCorp has taken a respectful and collaborative approach to working with plaintiff’s counsel to resolve claims for negatively impacted individuals. This has resulted in efficient resolution that provides impacted individuals with reasonable and timely settlements and afforded these folks the opportunity to move on with their lives.”
For more than a century, PacifiCorp has provided safe, affordable and reliable power and has served as a key driver of economic growth throughout Oregon. The company has an industry-leading wildfire mitigation program built upon significant investments in system strengthening, situational awareness informed by advanced risk forecasting and modeling, and protective operational practices.
The growing threat of wildfires affects everyone and is larger than any single company, industry or government. It is critical that wildfire-related issues be solved holistically, with businesses, governments and key stakeholders working together to design and implement constructive, enduring solutions.