PORTLAND, Ore. — A Multnomah County jury ruled that Pacific Power was negligent in the devastating 2020 Labor Day wildfires.
The jury returned its decision Monday, saying the utility was negligent, reckless and willful, and should be held financially liable for homes destroyed in the fires.
The jury awarded more than $70 million, collectively, to 17 homeowners who sued PacifiCorp a month after the fires.
The near-unanimous verdict covered the plaintiffs' property damage and emotional distress.
The jury also applied its liability finding to a larger class including the owners of nearly 2,500 properties damaged in the fires, which could push the price tag for damages higher.
Additionally, jury members now move to the second phase of the trial — punitive damages.
"The damages you have allowed in the first phase are significant, they’re life-changing, but not to a company like PacifiCorp — not to a company that makes nearly a billion dollars a year and that’s why we have punitive damages," said Nicholas Rosinia, an attorney representing the 17 plaintiffs.
Doug Dixon, a defense attorney representing Pacific Power, told jury members that their compensatory damages verdict created accountability.
"Your verdict this morning in phase one of the trial has sent a very clear message that Pacific Power is responsible for starting fires that destroyed plaintiffs’ homes and disrupted their lives on Labor Day 2020," Dixon said, while setting up his argument as to why jury members should not pursue punitive damages.
Dixon added that the legal standard for punitive damages is purposefully higher, saying Pacific Power doesn't need to pay up to be accountable.
“Is imposing punitive damages necessary to deter such conduct in the future when Pacific Power continues to make good on a host of improvements, many of which were planned long before Labor Day 2020," Dixon said, referring to the company's wildfire mitigation plans.
There has been no official cause determined for the 2020 Labor Day fires that killed nine people, burned more than 1,875 square miles in Oregon and destroyed upward of 5,000 homes and structures. The blazes together were one of the worst natural disasters in Oregon history.
The trial lasted for seven weeks and was packed with witness testimony. Plaintiff's attorneys argued that Pacific Power started these wildfires and then the company destroyed the evidence. The defense argued that Pacific Power shouldn't be held liable for climate change, that other wildfires were to blame, and that preventative power shutoffs were rare at the time.
The case centered around four wildfires: the Echo Mountain Complex fire, the South Obenchain fire, the 242 fire, and fires in the Santiam Canyon.
Pacific Power released a statement that said it plans to appeal the verdict. The Portland utility said in part:
"As a result of the historic and tragic wind event of Labor Day 2020, many of our fellow Oregonians suffered losses to their homes, businesses and communities. Regardless of the outcome, a trial will never fully restore what was lost. We are proud to have told the story of our incredible employees, who meet the call to service every day in support of our communities and customers and did so in the face of the preexisting, lightning caused Beachie Creek fire that roared into the Santiam Canyon causing widespread damage that weekend.
The company plans to pursue appeals, and we are confident we will prevail."
PacifiCorp, one of several utilities owned by billionaire Warren Buffett’s Omaha, Nebraska-based investment conglomerate Berkshire Hathaway, didn’t shut off power to its 600,000 customers during the windstorm over Labor Day weekend in 2020 despite warnings from then-Gov. Kate Brown’s chief-of-staff and top fire officials, plaintiffs alleged. Its lines have been implicated in multiple blazes, one of which started in its California service territory and burned into Oregon.
The jury returned 'yes' verdicts on most charges related to four wildfires in this case: the Santiam Canyon fire, the South Obenchain Fire, the Echo Mountain fire, and the 242 fire.
Pacific Power was frequently found liable by an 11-1 or 10-2 vote, according to documents read by a judge in court Monday morning.
This case could set precedent for power companies in the future, and their liability for wildfires when given notice of dangerous wind storms.