PG & E sued for camp fire while insurance claims reach billions


Three major insurance companies sue PG & E for billions of dollars in claims they expect to receive the campfire.

The lawsuit brought by Allstate Insurance Co., State Farm and USAA represents yet another potential blow for PG & E, which has already acknowledged that problems have arisen high voltage transmission tower On November 8, numerous lawsuits have already been initiated by victims of the camp fire. Cal Fire, the Public Utilities Commission and federal prosecutors are watching her closely.

Cal Fire is investigating and has not attributed any cause to the campfire. However, the insurance companies blame Pacific Gas and Electric Co. outright, saying the company has not properly maintained its power lines, towers and other equipment.

"The plaintiffs suffered damage caused by an act or omission of the accused," Allstate said in his trial, filed on December 21 before the Superior Court of Sacramento.

State Farm's prosecution accused PG & E of "failing to keep power lines, cables and all associated equipment in a safe state at all times to prevent fires".

Forest fires in the past two years are putting the property and casualty insurers under severe strain. Merced Property & Casualty, a small insurer in the San Joaquin Valley, has been declared insolvent early December because of camp fire claims. An industry-funded guarantee association will pay Merced Property customers for their losses, but by law it can only pay USD 500,000 per claim.

The camp fire killed 86 people, making it the deadliest fire in California's history and is expected to generate Billions of dollars in damages. About 90% of the housing stock in Paradise was destroyed, forcing the city's evacuation of 27,000.

Insurers' lawsuits, filed December 21 were first reported by the Sacramento Business Journal.

In addition to civil actions, PG & E could also face criminal penalties following the camp fire and the deadly flames that hit Santa Rosa and the wine region in October 2017. Federal prosecutors who have obtained convictions for crime against PG & E after the deadly explosion of the pipeline of San Bruno in 2010 said that fires the usefulness of utility received in the San Bruno case. PG & E has also recognized this possibility. The consequences of a probation flight are unclear.

According to California Attorney General Xavier Becerra, this utility could be sued for murder in the case of the campfire.

PG & E, when asked about the insurers' lawsuits, said in an email: "We continue to evaluate our infrastructure to enhance security, restore electricity and gas service where possible, and help customers find their way around. restore and rebuild. In our service area, we are committed to doing everything in our power to further reduce the risk of forest fire. "