**Berkshire Hathaway’s PacifiCorp Faces Legal Challenges from 2020 Wildfires**
PacifiCorp, a subsidiary of Berkshire Hathaway Inc., is grappling with ongoing litigation stemming from the devastating wildfires of 2020, which have exposed the company to potential damages in the billions. The company has warned that these legal challenges are threatening its ability to supply electricity to hundreds of thousands of customers in Oregon.
In an emergency court filing submitted on Friday, PacifiCorp highlighted that a judge in Portland has established an “impossible schedule” for 160 jury trials to take place “week after week” over the next two and a half years. These trials involve small groups of homeowners seeking millions in damages for properties and businesses lost in the wildfires four years ago. The relentless pace of these proceedings, according to the filing, jeopardizes the operations of a critical public utility relied upon by millions and could impose a significant financial strain on the largest electric grid operator in the western United States.
The company has already faced nearly $500 million in damages awarded to around 90 plaintiffs after a jury found in 2023 that PacifiCorp was negligent for not shutting off power lines prior to a major windstorm. Additionally, over 1,900 fire victims in western Oregon have yet to present their damage claims, making this case one of the largest in the state’s history.
While wildfires have become a common occurrence in the American West, PacifiCorp’s decision to take its case to trial in 2023 marked a significant moment, as it was the first instance where a lawsuit regarding extensive damage attributed to utility equipment proceeded to trial. The company remains optimistic about overturning the landmark verdict on appeal. However, it is now requesting a state appeals court to pause further damage trials until the appeal process is completed, which could take several years.
In a regulatory filing last month, PacifiCorp did not express its financial risks from the 2020 fires as severely as in the court documents. The company reported having paid over $1 billion in settlements and estimated probable losses from the fires to be around $2.7 billion as of the end of June. Attorneys representing fire victims have refrained from commenting on the recent filing but argued last week that delaying the trials would be unjust, as the fires left many Oregonians homeless and struggling.
In his annual letter to investors in 2024, Berkshire Chairman Warren Buffett cautioned that wildfires have transformed utilities across the western United States into high-risk investments. Utilities in states such as California, Colorado, Hawaii, and Texas have also encountered substantial fire-related liabilities. In response, PacifiCorp has been exploring options with Oregon regulators and lawmakers to mitigate its wildfire exposure, including the possibility of recovering litigation losses from customers and capping damages for non-economic claims.
**FAQ**
**What is the current legal situation for PacifiCorp regarding the 2020 wildfires?**
PacifiCorp is facing extensive litigation related to the 2020 wildfires, with numerous jury trials scheduled over the next two and a half years. The company has already incurred significant damages and is seeking to pause further trials while appealing a previous verdict.
