Jury blames PacifiCorp in Labor Day 2020 wildfires, awards $71M in damages

Wildfires Scott Mills Butte Creek rd 2020
Plaintiffs blamed negligence by PacifiCorp in the Santiam Canyon fire east of Salem, 242 fire in Klamath County, South Obenchain fire in Jackson County and Echo Mountain fire in Lincoln County.
Cathy Cheney|©Portland Business Journal
Pete Danko
By Pete Danko – Staff Reporter, Portland Business Journal
Updated

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PacifiCorp found grossly negligent in four Labor Day 2020 fires, now faces punitive phase and class damage claims.

A Multnomah County Circuit Court jury Monday morning found PacifiCorp grossly negligent in four Labor Day 2020 fires that struck Oregon and awarded damages totaling more than $71 million to 17 named plaintiffs in a class-action lawsuit.

The jury was set to begin hearing evidence later Monday on possible punitive damages that could drive the toll higher for the Berkshire Hathaway-owned company. And since the jury found PacifiCorp liable for losses suffered by the entire class, the utility could face payouts to thousands more people.

The jury awarded economic damages totaling more than $4 million to the 17 named plaintiffs, and non-economic damages totaling $67.5 million to 16 of them. Thirteen of the non-economic damage awards were for $4.5 million, three for $3 million.

"The company plans to pursue appeals, and we are confident we will prevail," PacifiCorp said in a statement released after the verdict was read.

The jury got the case last Thursday after a seven-week trial.

The plaintiffs had blamed negligence by PacifiCorp in causing the Santiam Canyon fire east of Salem, 242 fire in Klamath County, South Obenchain fire in Jackson County and Echo Mountain fire in Lincoln County.

They charged the utility was ill-prepared for fire risk and allowed its equipment to spark fires after failing to preemptively shut off the power despite warnings of epic fire conditions.

The hot and dry winds from the east fanned fires that killed nine people, burned more than 1.2 million acres and damaged more than 5,000 structures.

PacifiCorp tried to convince the jury it was ahead of regulatory requirements and other utilities in preparing for wildfires in Oregon. It conceded its power lines did spark some fires, but denied negligence. The defense tried to puncture the claim that PacifiCorp could be blamed for damages to the entire class in each fire, especially in Santiam Canyon, where it faces the greatest exposure. Its experts suggested embers from the existing Beachie Creek fire could have blown into the canyon.

But on all but one legal question — regarding inverse condemnation — at least nine of 12 jurors found for the plaintiffs. In addition to determining that PacifiCorp was grossly negligent, the jury concluded the utility was reckless and willful in its conduct.

The punitive damages phase gives the jury a chance to send a deeper message to PacifiCorp. But it would have to conclude there was clear and convincing evidence that PacifiCorp has “shown a reckless and outrageous indifference to a highly unreasonable risk of harm and has done an act or omission with a conscious indifference to the health, safety and welfare of others.”

If the jury does, it could award damages up to five times the compensatory damages already given to the named plaintiffs.

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