April 30 (Reuters) - A utility owned by Warren Buffett's
Berkshire Hathaway ( BRK/A ) faces $30 billion of new claims
blaming it for causing Oregon wildfires in 2020, nearly four
times the maximum loss it had projected.
One thousand victims filed claims against the PacifiCorp ( PPWLM )
utility on Monday in a state court in Portland.
Victims are each seeking up to $5 million for actual losses
such as property damage, and up to $25 million for non-economic
losses such as emotional distress.
The claimants were added to litigation where a jury last
June ordered PacifiCorp ( PPWLM ) to pay $90 million to 17 claimants for
gross negligence over its failure to shut down power lines
during a Labor Day windstorm.
PacifiCorp ( PPWLM ) is appealing. Through late February, the
Portland-based utility had paid $735 million to settle wildfire
claims by several hundred people and 10 timber companies.
In a statement on Tuesday, PacifiCorp ( PPWLM ) said it had settled
more than 1,000 Oregon wildfire claims and it would continue
resolving reasonable claims under that state's law.
It also said excessive claims posed an "ominous risk" to
future investments in states that expose utilities to becoming
"de facto insurers of last resort" as extreme weather becomes
more prevalent.
"The $30 million demand for each plaintiff clearly
demonstrates the need for some manner of reform in the legal
process," PacifiCorp ( PPWLM ) said.
PacifiCorp ( PPWLM ) is a unit of Berkshire Hathaway Energy, which is
92% owned by Buffett's conglomerate.
The claims were filed two months after Buffett warned in his
annual shareholder letter that wildfires could threaten the
survival of utilities in a few states, an outcome he had not
anticipated.
Buffett singled out California's Pacific Gas & Electric
, which filed for bankruptcy in 2019, and Hawaiian
Electric, which faces many lawsuits over last August's
wildfires in Maui.
Berkshire ended 2023 with $2.4 billion of projected wildfire
losses, and has said they could grow to $8 billion.
The federal government is seeking nearly $1 billion from
PacifiCorp ( PPWLM ) to cover costs of multiple wildfires in Oregon and
Northern California, and has threatened a lawsuit.
Berkshire bought PacifiCorp ( PPWLM ) for $5.1 billion in 2006.
The case is Henson et al v PacifiCorp ( PPWLM ) et al, Oregon Circuit
Court, Multnomah County, No. 20CV33885.