July 19 (Reuters) - The law firms leading class-action
litigation against PacifiCorp ( PPWLM ) over the 2020 Labor Day weekend
wildfires in Oregon want to examine whether the utility owned by
Warren Buffett's Berkshire Hathaway ( BRK/A ) is colluding with
other law firms to reach lowball settlements with fire victims.
In a court filing, Edelson PC, Keller Rohrbach and Stoll
Berne said they were blindsided when PacifiCorp ( PPWLM ) and three law
firms not involved in the class action jointly announced a
$178-million settlement on June 3 with 403 victims of the
Beachie Creek and Echo Mountain Complex fires.
The class-action firms said payouts per victim were barely
two-thirds of the payouts in an earlier $299-million settlement
obtained by other law firms for victims of the Archie Creek
fire, and included almost nothing for pain and mental suffering.
They said the June 3 settlement came just one week after
mediation to resolve the class action broke down, as the three
other law firms began cold-calling and mailbox-stuffing to
encourage fire victims to hire them and settle.
"(The three firms) appear to be working hand-in-hand with
PacifiCorp ( PPWLM ) to enrich themselves, benefit PacifiCorp ( PPWLM ), and harm
fire survivors" by settling claims at a "PacifiCorp ( PPWLM )-approved,
bargain-basement price point," the class-action firms said.
PacifiCorp ( PPWLM ) had no immediate comment on Friday. The three
firms, Warren Allen, Spreter Petiprin and the Swigart Law Group,
did not immediately respond to requests for comment.
The dispute threatens to complicate Portland-based
PacifiCorp's ( PPWLM ) efforts to settle Oregon and northern California
wildfire claims, after being blamed for failing to shut off
power lines during a windstorm.
PacifiCorp ( PPWLM ) has paid more than $1 billion to settle over
1,600 claims, but faces billions of dollars of additional
claims, including a $30-billion lawsuit.
Last month, the three firms in the $178-million settlement
asked the Portland-based judge overseeing the class action to
clarify when they can solicit fire victims.
The class-action firms now want the judge's permission to
review communications between the three firms, PacifiCorp ( PPWLM ) and
class members for possible collusion, and let victims who
settled with PacifiCorp ( PPWLM ) back out if collusion is found.
PacifiCorp ( PPWLM ) is a unit of Berkshire Hathaway Energy, which is
92% owned by Berkshire Hathaway ( BRK/A ), the conglomerate that Buffett
has run since 1965.
Greg Abel, Buffett's expected successor as chief executive,
said at Berkshire's annual meeting on May 4 that PacifiCorp ( PPWLM ) will
continue challenging "unfounded" wildfire litigation.
The case is James et al v. PacifiCorp ( PPWLM ) et al, Oregon Circuit
Court, Multnomah County, No. 20CV33885.