March 4 (Reuters) - An Oregon state jury on Tuesday
ordered Berkshire Hathaway's ( BRK/A ) PacifiCorp ( PPWLM ) to pay at least
$29.2 million to nine homeowners and a summer camp whose
properties were damaged by 2020 wildfires they claim were
sparked when the Oregon utility failed to shut off its power
lines during high winds.
The verdict came in a trial that kicked off on Feb. 27 in
Multnomah County Circuit Court in Portland, where PacifiCorp ( PPWLM ) is
based.
The trial was the second of at least three scheduled this
year to serve as test cases to determine how much PacifiCorp ( PPWLM )
owes Oregon residents and business owners, whose homes and
properties were ravaged by a series of fires that torched parts
of the state over Labor Day weekend in 2020, causing nearly $1.9
billion in property damage and other harms, according to a state
estimate.
The company could face billions of dollars in liability to
compensate homeowners and business owners who claim the fires
damaged approximately 2,400 properties across the state. The
victims claimed in their 2020 class action that PacifiCorp ( PPWLM ) had a
duty to safely operate its electrical equipment, but negligently
failed to shut it off.
The company has said it is appealing previous verdicts
against it. It has also settled separate claims related to the
fires, and has said it will continue to settle other
"reasonable" claims as well.
A separate jury last year already determined PacifiCorp ( PPWLM ) was
liable for the fires, finding the company was grossly negligent
when it failed to shut down power lines that sparked during high
winds and set off fires across the state. That trial involved 17
people whose homes or properties were damaged, but the liability
findings apply to all the plaintiffs in the class action.
The jury also set punitive damages, which are damages
reserved for defendants whose behavior is deemed particularly
egregious, at 25% of compensatory damages. That finding also
applies to all of the plaintiffs, which should boost their
overall recovery.
In January, another jury ordered PacifiCorp ( PPWLM ) to pay at least
$62 million to nine homeowners whose properties were damaged by
the wildfires.
The company has defended its fire-prevention efforts, saying
power shutoffs were not necessary based on what it knew. It has
also said the plaintiffs did not establish that its equipment
was to blame for the wildfires.
Wildfires throughout Oregon in 2020 burned approximately
1,900 square miles (1.22 million acres), destroying an estimated
5,000 or more structures and killing at least nine people.
The U.S. government has also threatened to sue the company
over natural resources damages and fire suppression costs
associated with the 2020 Slater wildfire in southern Oregon and
northern California.