Aug 26 (Reuters) - A federal judge on Tuesday dismissed
a negligence claim in the U.S. government's lawsuit against
Berkshire Hathaway's ( BRK/A ) PacifiCorp utility unit, which
seeks more than $900 million in damages stemming from a 2020
wildfire in Oregon.
U.S. District Judge Karin Immergut in Portland said the
government did not specify how PacifiCorp's alleged lack of care
in maintaining its power lines caused the Archie Creek Fire in
southwestern Oregon, dooming its "negligence per se" claim.
Negligence per se is where a defendant is assumed to breach
a duty of care when violating a law, leaving only the question
of whether the violation caused injury.
Immergut said relevant Oregon laws governing wildfire
prevention didn't define PacifiCorp's duty of care, and it was
"not enough" for the U.S. government to broadly allege that
PacifiCorp's mistakes justified liability.
The government also brought claims of trespass by fire,
common law nuisance and breach of license. Immergut said it can
try to replead the negligence per se claim.
PacifiCorp had no immediate comment. The U.S. Department of
Justice and U.S. Attorney's office in Portland did not
immediately respond to requests for comment.
The Archie Creek Fire broke out on September 8, 2020 and
burned 131,542 acres, including 67,074 acres of federal land,
before being contained eight weeks later.
PacifiCorp also faces many private lawsuits, including
proposed class actions, blaming its equipment for various Oregon
wildfires.
It has lost several "mini-trials" and many more trials are
expected. Through June 30, PacifiCorp recorded $2.75 billion of
expected wildfire losses and said they could grow significantly.
Berkshire, based in Omaha, Nebraska, bought PacifiCorp for
$5.1 billion in 2006.
At Berkshire's May 3 annual meeting, Berkshire Chairman and
Chief Executive Officer Warren Buffett said "we made some
mistakes" in not shielding PacifiCorp better from wildfire
liability.
Vice Chairman and CEO-designate Greg Abel added that
"keeping the lights on" was no longer a priority for
Berkshire-owned utilities when wildfire risks grew too big.
The case is US v PacifiCorp et al, U.S. District Court,
District of Oregon, No. 24-02102.