Wildfire victims may lose twice
California wildfire victims have already lost most everything they owned. Now — just three weeks before a critical filing deadline — tens of thousands of them may lose their chance at compensation. The deadline for wildfire victims to file claims against PG&E is Oct. 21. The deadline is part of PG&E’s bankruptcy case — the terms of which are still being contested by both victims and PG&E bondholders.
The two groups have asked Dennis Montali, the presiding judge in the bankruptcy case, to break PG&E’s control over the proceedings and allow them to advance their own proposal that would include a $14.5 billion trust for victims. PG&E wants to resolve the case with $8.4 billion for victim claims instead.
Asked for comment, PG&E said, in a statement: “PG&E believes the Chapter 11 process will support the orderly, fair and expeditious resolution of claims, including wildfire claims. Our goal is to ensure that all parties — including wildfire victims — receive proper notice of the bar date (the last day to file proof of claims) and the requirements for filing a proof of claim.”
It’s certainly in PG&E’s best interest to have a rigid and fastapproaching restriction on claim filing. The fewer victims who file claims, the less the company has to pay out.
That’s why it’s alarming that only about 30,000 victims have filed claims so far, with the help of lawyers, while an additional 1,500 have filed on their own. That leaves an estimated 70,000 people who are eligible for compensation yet may not file before the deadline.
In any natural disaster, there are many reasons why it can take victims a significant amount of time to file for compensation.
The most obvious reason is that many victims are displaced and did not receive notice from the company.
PG&E says it mailed 6.2 million claim forms to possible victims of about two dozen fires, and that its claims notification process went “above and beyond what is typical in a Chapter 11 process” and included outreach via email, social media and other forms of advertising.
Still, none of that may be of much use to the significant number of victims who are still homeless, living with a series of different friends or family members, or who have moved out of the area since losing their properties.
Furthermore, navigating any claims process is neither simple nor straightforward. It’s telling that so many of the wildfire victims who have filed claims have done so with the help of lawyers. Add in the uncertainty of PG&E’s bankruptcy, and the hesitancy of so many victims is not surprising.
PG&E says that any decision about extending the claim filing will be made by the bankruptcy court. Montali must extend the deadline.
In a small way, Bay Area residents may have a deeper understanding of how wildfire victims may be confused about the claims process given this week’s power shutoffs.
On Tuesday afternoon, PG&E confirmed that it would shut off power to nearly 800,000 customers in 34 California counties just after midnight. The affected areas include nearly every Bay Area county except San Francisco.
Since the shutoffs may last for several days, the announcement set off panicked runs on local groceries and pushed both harried parents and school district officials to prepare for canceled classes.
The Bay Area is vulnerable to many kinds of disasters, and we urge all residents to be prepared for sudden emergencies. But the level of confusion and disruption that’s ensued from the shutoff announcement should be yet another signal to Montali that victims’ voices deserve the most weight.