UPDATED: PG&E Takes Heat for Admitting Liability in San Bruno Fire

PG&E’s admission that the company is doesn't go far enough and won't speed up legal proceedings, attorneys said Wednesday.

“By admitting liability what they are really trying to do is avoid liability,” said Mike Danko, who represents more than 50 plaintiffs in a consolidated lawsuit against the utility company. “They don’t want to talk about what they did wrong. They just want to compensate them for their injuries.”

Fifteen months after the Sept. 9, 2010 fire that killed eight people, PG&E announced on Tuesday that it is taking financial responsibility to compensate all of the victims for the injuries they suffered as a result of the accident.

The statement came days before a case management conference on Friday. San Mateo County Superior Judge Steven Dylina had requested the company’s position on liability.

Damages could top $1 billion

More than 250 lawsuits have been filed against PG&E in relation to the devastating accident, said Danko, who estimated that damages could top $1 billion. 

PG&E spokeswoman Brittany Chord said the company has accepted liability for physical and emotional injuries and property damages but not punitive damages, which are the most expensive.

Chord said PG&E has been active in rebuilding and purchasing homes in the neighborhood, which lost 38 homes in the blaze.

"We have been there and will continue to be there to help and support the residents as they continue to rebuild," she said.

PG&E President Chris Johns said in Tuesday’s statement that the company hopes admitting liability would speed up compensating victims and avoid drawn out legal proceedings. 

Chord said she couldn't specify how soon victims would be compensated. "It's important for us that victims have fair, prompt results," she said.

“PG&E never goes to trial, always admits fault to speed up settlements,” said Patch commenter . “This is to settle for the cheapest dollar amounts, and avoid punitive damage claims.”

Danko said PG&E’s position shouldn’t bring a faster resolution to the case, for the company’s wrongful conduct needs to be exposed to a jury. “We are not going to be safe until that information comes out,” he said.

Neighborhood still recovering

Just before sunset Wednesday, Christmas bulbs and rosaries lined a temporary fence on Claremont Drive honoring the fire victims. The engine of a sewer service truck roared.

While walking his dog, Crestmoor resident Steve Morales said it seems like PG&E is trying to avoid a hefty payout by just claiming liability. "From their standpoint I can see it's going to save PG&E money," Morales said.

Morales said he is suing the utility because his asthma has been aggravated from all of the construction dust. "I'd like to see all the homes up," he said. "Maybe that'll help my asthma."

Less than a third of the destroyed homes are under construction, according to the city.

Before the tragedy struck, Morales said he and his wife would take evening walks and sit on a Glenview Park bench, but the night of the fire he walked his dog early to catch the Green Bay Packers game. This twist of fate saved their lives, he said.

Several other residents declined to be interviewed, citing legal or emotional reasons.

Legal case proceeds

Don Dowling, a San Bruno attorney who represents 20 plaintiffs, said PG&E’s admission of liability changes nothing since a jury will still have to weigh whether PG&E showed conscious disregard for the safety of the community and consider awarding punitive damages.

“Our discovery directed to PG&E will continue to go forward because we need to be able to prove that not only was PG&E negligible, but they were über negligible,” Dowling said.

To illustrate the difference between negligence, which is what PG&E has admitted, and conscious disregard for life, Dowling said it’s like a driver running a red light and causing an accident vs. a drunk driver causing a collision.

“The issue will become: was this financially motivated? Was it cheaper for PG&E to let this pipeline persist in this damaged condition?” Dowling said.

Chord said PG&E has been conducting rigorous testing of its gas transmission lines, including the infamous Line 132, to ensure they are safe.

Of 150 miles of pipelines tested, the company discovered three weaknesses in Woodside, Palo Alto and Bakersfield, she said.

"We took immediate action to repair and replace those segments so that we could retest those segments and ensure that the system is operating safely," Chord said.

At Friday's hearing, attorneys will be discussing case strategy. The jury trial is scheduled for July.