Oregon Appeals Court Ruling Could Impact Wildfire Damages Against PacifiCorp
An Oregon appeals court has ruled in favor of PacifiCorp, potentially affecting over $1 billion in damages previously awarded to victims of the 2020 wildfires in the state.
The Oregon Court of Appeals has directed a class-action lawsuit back to a lower court due to concerns regarding jury instructions from a trial in 2023. During that trial, PacifiCorp was found liable for not shutting off power despite warnings from fire officials, resulting in punitive damages being awarded to property owners.
Subsequent jury decisions have led to over $1 billion in damages being levied against PacifiCorp, covering thousands of affected parties.
The appellate panel of three judges found fault with the instructions given to the jury, particularly concerning the application of evidence from four distinct wildfires to all class members. The judges stated, “We conclude that … that instruction was legally erroneous, because certain evidence at trial, particularly related to causation, did not necessarily apply to every class member.” They further noted this was prejudicial to PacifiCorp, leading to the reversal and remand of the case.
The impacted class comprises owners of over 2,000 properties damaged during fires, which were separated by more than 100 miles in some cases. The fires in question included the Santiam Canyon fire, the Echo Mountain Complex fire, and others in southwestern Oregon.
The 2020 Labor Day weekend wildfires, described as one of Oregon’s most severe natural disasters, resulted in 11 fatalities, burned over 1,560 square miles, and destroyed thousands of homes. The next steps in the legal process remain uncertain, with potential appeals to the state supreme court and trials for over 1,000 class members planned for 2026 and 2027.
PacifiCorp responded to the court’s decision, emphasizing it supports the company’s belief that the previous process was unfair. “There are no winners in wildfire; however, the Court’s decision supports PacifiCorp’s longstanding belief that this process was prejudicial and not appropriate for managing wildfire litigation,” the company stated. They added their openness to resolving reasonable claims while defending against unsupported ones.
The plaintiffs’ lead counsel acknowledged the ruling as a “procedural setback,” asserting that the jury’s findings were not questioned on the merits. The counsel indicated the court identified options for moving forward, including correcting the jury instruction and retrying the case.
Separately, PacifiCorp has committed over $2 billion to settle various lawsuits related to the 2020 fires, including a payment of $575 million to the federal government for damages on federal lands in Oregon and California.
In efforts to stabilize its financial situation, PacifiCorp announced in February the sale of its assets in Washington state to Portland General Electric Company for $1.9 billion. This move comes amid the ongoing appeals of wildfire judgments, which have required PacifiCorp to secure bonds, impacting its cash flow.
