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Judge OK’s revisiting Tubbs Fire cause, against PG&E’s wishes

A federal judge is allowing victims to challenge Cal Fire's findings that equipment on private property caused the Tubbs Fire. Winning could mean money for victims.

NAPA COUNTY, Calif. — Victims of the deadly and wildly destructive 2017 Tubbs Fire are getting a chance to revisit its cause in state court, which could mean pay-outs from PG&E.

Back in January, Cal Fire released the findings of its Tubbs Fire investigation that said equipment on a private residence ignited the flames.

Attorneys for the victims disagree with Cal Fire’s findings and believe that PG&E’s equipment is to blame for the Tubbs Fire— and say they have the evidence to prove it.

RELATED: Cal Fire: Deadly Tubbs Fire caused by homeowner equipment, not PG&E

However, when PG&E filed for bankruptcy in January, that placed an automatic freeze on any claims against the utility in state court.

In a court document filed Friday, federal Judge Dennis Montali, who is overseeing PG&E’s bankruptcy, decided that attorneys for Tubbs Fire victims are now able to challenge CAL FIRE’s findings via a jury trial in state court. Eight victims will now be allowed to go forward and try their case against PG&E.

If the eight victims win and PG&E’s equipment is found to have started the Tubbs Fire, that means they and other victims from the same wildfire could get money for their losses from PG&E. The trial could happen in early 2020, in San Francisco Superior Court.

RELATED: Get a deadline notice from PG&E? Here's what it means

Attorney Steve Campora estimates he represents well over 1,000 victims from wildfires spanning 2017 and 2018, including the eight victims who are now able to present their case before a jury.

"There are a lot of things we think are left out of the Cal Fire report, a lot of evidence that we have that wasn’t addressed in the Cal Fire report,” Campora said, “Arcing on lines and blown fuses that were taken away by PG&E employees before Cal Fire got there, PG&E failing to clear a pole that was required to be cleared under the regulations…so we think there’s a lot of evidence that shows that PG&E is responsible and we’ll produce that evidence at the time of trial.”

Those victims have yet to see a dollar paid out to them by PG&E, Campora said.

RELATED: PG&E asks bankruptcy judge for executive bonus plan

Part of resolving PG&E’s bankruptcy case involves figuring out how much the utility owes victims of the 2017 and 2018 wildfires caused by the utility’s equipment.

The Tubbs Fire killed 22 people and destroyed more then 5,600 homes and buildings. It’s known as the largest and most destructive of all those fires. As such, determining via trial whether PG&E’s equipment caused that fire will help determine how much PG&E owes to victims overall.

In fact, Judge Montali wrote in his Friday decision, if PG&E is found responsible for and liable in the Tubbs Fire’s cause, the potential pay-outs to those victims could account for as much as two-thirds of everything PG&E owes to all 2017-18 wildfire victims.

RELATED: Northern California fire victims can file claims with PG&E

“Resolution of the Tubbs fire proceedings is central to this [bankruptcy] case,” Montali wrote, adding that the trial “will definitively bring a resolution as to Debtors’ liability in the Tubbs fire, and provide an important data point that most likely will facilitate resolution of the wildfire tort claims in this case.”

This will move the overall bankruptcy case toward “a just resolution of the claims of victims of the wildfires that have ravaged Northern California in recent years,” Montali wrote. “The pressure to adjudicate these claims in a prompt fashion comes from bankruptcy considerations, moral duties, and even legislative deadlines.”

The ‘Wildfire Fund’ law passed last month [AB 1054] created a $21 billion pool of money that utilities can tap into to help pay the claims of victims of future wildfires caused by their equipment. In order to access the fund, the law says, PG&E must be out of bankruptcy proceedings by June 30, 2020.

PG&E accepted the findings of Cal Fire and has fought the effort to allow revisiting the cause of the Tubbs Fire.

“Regardless of the next legal steps, Cal Fire has already determined that the cause of the 2017 Tubbs Fire was not related to PG&E equipment,” PG&E wrote in response to ABC10’s request for comment on the judge’s decision. “We intend to cooperate with the state court in order to help achieve the June 30, 2020 deadline to participate in the new state Wildfire Fund established by Assembly Bill 1054.”

One entity happy with Judge Montali’s decision is the Ad Hoc Subrogation Group, whose members hold more than $20 billion in unsecured claims against PG&E stemming from insurance claims paid to wildfire victims, which total in the billions.

“We are pleased with the court’s decision and look forward to presenting our case in a state court forum,” the group wrote in response to Montali’s decision. “Establishing PG&E’s liability with respect to the Tubbs Fire is a crucial component to resolving these Chapter 11 cases. We are confident that when all of the facts and evidence are presented, PG&E will be held accountable for the fires they caused. We look forward to a resolution that both meets the June 2020 legislative deadline and treats wildfire victims and all PG&E stakeholders fairly.”

A status conference on the trial is set for Aug. 27.

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