A successful appeal by PacifiCorp in an Oregon wildfire lawsuit could save parent company Berkshire Hathaway over $1 billion in potential damages from the 2020 Labor Day fires.
“There are no winners in wildfire; however, the Court’s decision supports PacifiCorp’s longstanding belief that this process was prejudicial and not appropriate for managing wildfire litigation,” the company said in a statement.
The Oregon Court of Appeals ruling centers on a procedural flaw in a 2023 class-action trial. A three-judge panel found that the trial court erred by instructing the jury it could assume evidence presented for four different wildfires applied to all class members, which included owners of over 2,000 properties across more than 100 miles.
The decision sends the case back to a lower court and could jeopardize over $1 billion in damages already awarded to victims in a series of trials. The ruling may also pause more than 160 damages trials scheduled through 2027. Attorneys for the plaintiffs called the decision a "procedural setback," noting the court did not challenge the original jury's finding that PacifiCorp was negligent.
The 2020 wildfires were among the worst in Oregon's history, killing 11 people and destroying thousands of homes. The initial lawsuit found PacifiCorp, which owns Oregon's second-largest utility Pacific Power, liable for negligently failing to de-energize its power lines despite forecasts of high winds.
The path forward is uncertain. The case could be retried in the lower court with new jury instructions, or it could be appealed to the Oregon Supreme Court.
This ruling significantly reduces a major financial liability for Berkshire Hathaway, potentially boosting investor confidence. Investors will now watch for the plaintiffs' decision to appeal or the commencement of new proceedings in the lower court to determine the final financial impact.
This article is for informational purposes only and does not constitute investment advice.