We are sympathetic to the fact that the complicated claims evaluation and payout process required by both California law and bankruptcy law can be hard for anyone to understand, said Yanni. Well, when the Trusts oversight committee is a group of nine of the victims attorneys, who, as mentioned, promoted the PGE bankruptcy settlement and were eager to get their fees paid, why not turn a blind eye toward the excessive fees and salaries for the Trustee and his managers and consultants. It is an important development for fire survivors, and I share the. The deal was structured to avoid having to pay taxes on the sale, authorities said. 16. Happy New Year. If you're on the ABC7 News app, click here to watch live, Videos show parade of storms toppling trees across SF Bay Area, The warning signs your tree may fall during next storm, 18 killed in helicopter crash near Kyiv, Ukraine, including children. California Governor's Office of Emergency Services, Christopher and Urmila - 2017 Tubbs Fire Victims, FEMA can help California communities recover under the Stafford Act, Home insurance availability, affordability AND quality is shrinking: States and the Feds must coordinate and take action to protect homeownership in the US. Apparently, no one can stop Trustee Trotter from selling victims shares at a loss. What's wrong with this picture? Trotter, a retired California Appeals Court judge, charges $1,500 an hour, according to court filings, while claims administrator Cathy Yanni bills $1,250 an hour. KQED analyzed federal bankruptcy court filings, court transcripts and correspondence between victims and staff of the Fire Victim Trust. Trotters response to the Butte County Board of Supervisors letter was to leave a voicemail criticizing the board. San Francisco, CA Cathy Yanni, Trustee of the Fire Victim Trust (FVT), announced a pro rata payment increase from 45 percent to 60 percent effective January 31, And, Trustee Trotter, 86 when he was appointed by Judge Montali is now 88 draws a salary of $125,000 per month as the Trustee. At this time, the court has not yet issued a claims Bar Date (the deadline for submitting claims), nor has the court approved an official claim form for wildfire losses. If a Disaster Declaration is issued, it can be either a Emergency Declaration (to supplement state, local, and tribal government efforts to provide debris removal and emergency protective measures or to lessen/avert, Need a last minute holiday gift? If you have a claim for fire-related damages, you are considered an unsecured creditor of PG&E for purposes of the bankruptcy process. March 12, 2021, San Francisco On Monday, March 15, the Fire Victim Trust (FVT) will begin distributing the first round of pro rata payments toward satisfying the claims of individuals and families who suffered losses in the 2015 Butte Fire, 2017 North Bay Fires and 2018 Camp Fire. Wildfire victims do not lose their right to compensation because of the bankruptcy and should consult an attorney about preparing a claim. One of the hallmarks of trust administration is transparency. San Francisco, CA 94104, 2023 | ATTORNEY ADVERTISING MATERIAL | Privacy Policy & Disclaimer | Sitemap. He noted that the bankruptcy court created two pots of money, one for the insurance companies and another for fire victims, including federal and state agency claimants. ABC7News. Attorneys for the fire victims negotiated the deal on behalf of survivors, and it was funded half with cash and half with foundering PG&E stock. Representatives for the Fire Victim Trust declined to be interviewed. An annual report filed in federal bankruptcy court last week by its trustee, John Trotter, reported $38. 7 million spent on financial professionals, claims administrators, consultants and other operating expenses between July 1 and the end of 2020. (12,19). Retrieved June 5, 2022, from https://www.kqed.org/news/11891626/hedge-funds-cash-out-billions-in-pge-stock-fire-survivors-suffer-and-wait, (2) Trust Distributed $1.69B to PG&E California Fire Victims in 2021. He will be replaced by Cathy Yanni, who has been with the trust since it was created two years ago as the claims administrator. And all of the victim attorneys (with just a couple of exceptions) said at the time that this was the best deal the victims could probably get, and if we rejected it, PG&E could file for Chapter 7 and we could lose almost everything and it could take years for that to happen. Jul 11, 2022 | Casualty Gain, PG&E Settlement. These preliminary payments, which have totaled $79 million to date, will continue to be made on an ongoing basis. Our Standards: The Thomson Reuters Trust Principles. 2023 United Policyholders The material on this site is for informational purposes only and is not a substitute for legal advice. (1,2,5,13), The Sting - The PG&E U.S. Bankruptcy and PG&E Fire Victim Trust, This petition addresses how the unbridled power of the U.S. Bankruptcy system and its Judge (Dennis Montali), Wall Streets Hedge Fund Managers, Pacific Gas & Electric corporation (the largest U.S. public utility) and its lawyers, insurance companies and governments and victims lawyers worked together and/or independently to financially dominate and become the largest beneficiaries of the $55 billion PG&E wildfire bankruptcy payouts. He said in his letter that the trust still owns 377 million shares of the utilitys stock. Read the responses here. Huge welcome back! The court-ordered trust of over $13 billion was established for survivors of devastating Northern California wildfires including the 2015 Butte Fire, the 2017 North Bay (2020, December 19). Our one and only goal is to give everyone whose lives have been disrupted and devastated by the wildfires the financial resources they need to rebuild their lives as soon as possible.. California established a $21 billion wildfire safety net for state utilities that PG&E can tap if it has over $1 billion of fire claims in a year. Read https://twitter.com/Cal_OES/status/1609310956794019840. He (and now Ms. Yanni) has complete discretion over when and how much to sell the victims PGE shares. %PDF-1.6
%
1054 CHAPTER 79. - The Dixie Fire is now the second biggest wildfire since 1932, according to the California Department of Forestry and Fire Protection. No class action has been certified in either the civil court or the bankruptcy court. But if the toll from fires exceeds whats in that pot, PG&Es solvency might even be at risk. I believe that we needed an open line of communication with the trust which I did not get the feeling Justice Trotter supported that, but I do believe we have that going forward with Cathy Yanni.. In the aftermath of each fire, thousands of people sought refuge in their vehicles, emergency tent communities or FEMA camps. For more information, visit FireVictimTrust.com. United States Trustee Program Director Elliot - Fix the Biggest Victim Economy Ever Created by the U.S. Bankruptcy Program! Newsom correct the inequities in the PGE wildfire victims' settlement awards that are being adjudicated by the PGE Fire Victim Trust and fully compensate the victims of the 2015, 2017 and 2018 Northern California wildfires as required by California's "inverse condemnation" law which says "if you broke it, you fix it" (which applies to public utilities) and, more importantly, by doing what's morally right. Newsom approved, is and continues to be a tragic outcome for the PG&E wildfire victims. Trotter also pointed out that the trust was facing tax issues, saying that the state and Federal Capital gains tax rate of more than a 40 percent capital gains tax on any profit above the $9 per stock price. To the supervisors' points, it is clear that the excruciatingly slow processing of claims that we victims have suffered through for years demonstrates that the deal that Judge Montali helped craft and approve, and his long-term colleague and fellow octogenarian, Trustee Trotter, is overseeing, and which Gov. The industry leader for online information for tax, accounting and finance professionals. CHP Responds To Fatal Rollover Crash On Hwy 128 In Napa County, Napa County Under Coastal Flood Advisory, Flood Watch, Wind Advisory, Most Napa County Government Offices Closed Martin Luther King Jr. Holiday. The PGE Trust Oversight Committee is comprised of nine attorneys. Once they were able to resolve that issue with help of its lawyers, Brown Rudnick, the trust was able to gain another $100 million by having to avoid that capital gains tax, Trotter said. On January 9 and 10, 2023, FVT sold 60 million shares of PG&E stock. Trotter pointed out that the insurance trust received $11 billion in cash to satisfy its claim of having to payout $16 billion to its insureds and for maintaining an additional $4 billion in reserve. As of January 12, 2023, the FVT had issued determination notices to 91% of all claimants and paid claimants over $5.93 billion. (2021a, May 17). But its enterprise value of $60 billion is under 8 times estimated EBITDA over the next 12 months, whereas peers trade over 11 times, according to Refinitiv. Legal claims arising out of the 2017 North Bay Fires and the 2018 Camp Fire will now proceed to resolution through the bankruptcy court rather than the civil courts. As you know, you approved Judge Montali's settlement plan which does not compensate us fairly. The Tort Claimants Committee (or TCC) is designed to give the individuals and families most affected by the 2017 and 2018 fires an independent and official voice throughout the bankruptcy case. But the bill is stuck. We never share your information with third parties. And their fees are paid directly from PGE Fire Victim Trust funds designated primarily for the victims loss compensation from the PG&E settlement. He also said the trust hired Morgan Stanley to manage the sale of the first 100 shares of stocks, netting the trust $1.2 billion. All local city and county governments, large financial Hedge Funds that were investors in PGE, PGE and its attorneys, and the victims lawyers are and have been paid in full and quickly from the PGE bankruptcy $55 billion dollar settlement. Broadly, the process involves the following steps: With support from the Governors office and the California legislature, PG&E is expected to emerge from bankruptcy under a reorganization plan in secure (or investable) financial condition. Thats between $800 and $1,250 per hour. Additional rounds of pro rata payments will follow until the fund is depleted.
(4), And the legions of lawyers and consultants from the Greenberg law firm in North Carolina (who Trustee Trotter hired) are surely making handsome consulting fees, though the Trustee keeps these fees close to his chest wonder why? Most fire victims are still waiting to be paid by PG&Es Fire Victim Fund, investigation finds. You brought an important and unique perspective to the hearing, that of homeowners themselves., Whenever I felt confused about any topic I first looked it up in the yellow book. Newsom approved Montalis bankruptcy plan for PGE. We are looking for a Governor to vote for that can help us get "fair" compensation as promised by PGE bankruptcy Judge Dennis Montali. (2), This petition also addresses the actions that embellished and continue to embellish these legal, financial, and government entities and politicians who benefited and continue to benefit from wildfire victims disaster recovery. The Bank of Japan (BOJ) made no adjustments to its yield-curve control (YCC) policy that keeps interest rates ultra-low on Wednesday. We are in good hands! SAN FRANCISCO (AP) A trust approved by a federal judge to help compensate victims of deadly California wildfires sparked by Pacific Gas & Electric equipment paid survivors just $7 million while racking up $51 million in overhead in its first year of operation, KQED News reported. hb```e"B eap@a~il=6Q,NwkGFGRWTl%Xl) c$sAf>OL2aT`fafa? Many, if not all the victims lawyers, surely wanted the clock to start as soon as possible. Worse, the risk from fires has only been partially addressed. Without all your input I have no idea how we could have recovered. Were not quite there yet, but getting closer! Because of errors in the setup of how the trust was established, the tax issue was left unresolved, he said, triggering unnecessary delays that hindered victim compensation. In the meantime, between attorney's fees and taxes, fire victims are watching what settlement payments they do receive get smaller, along with their dreams of rebuilding anytime soon. And Trustee Trotter, in his not-so-infinite wisdom, has already sold 100 million shares of the victims PGE stock at $12.04 per share for a $212 million loss. (8), In fact, the funds earmarked for wildfire disaster victims have first, quickly and more than fairly gone to the unwieldy and ineffectively operated PG&E Fire Victim Trust bureaucracy, (with excessive fees paid to the Trust managers and consultants); to the insurance companies that received full reimbursement of their homeowner insurance subrogation claim payments, and; complete payouts and large stock bonuses to the Hedge Funds for accepting the bad (half-stock) deal they all agreed to offer to the wildfire victims. Read the press release here. With such financial leverage, certainly Trustee Trotter could (and still could) have found a way to leverage our position by borrowing against our stock and preserving our position rather than squandering it away. The Un-Trustworthy PG&E Fire Victim Trust (PVT). By our calculations, our attorneys for our PG&E Fire Victim Trust settlement were fairly compensated for the time they spent on our claims processing with the Trust. As noted, Judge Montali is also an octogenarian at 81 years of age and was recently appointed again for another 14-year term as a U.S. bankruptcy judge in April of 2021, meaning hell be 95 when this term of service expires. Fire Survivors Suffer and Wait. Im pleased that the Trust is able to start making substantial pro rata payments in what has been a relatively short period of time by any bankruptcy settlement standard. "What's the biggest hold up here," asked ABC7 News I-Team Reporter Melanie Woodrow. In the first pro rata payment, each claimant will receive 30% of the value assigned to their claims. Newson, just approved two new rate hikes to PG&E customers (including all PG&E victim customers) totaling a 23% increase to rate payers effective March 2022. and the Claims Administrator Cathy Yanni, the Fire Victim Trust provides an efficient and equitable process to compensate Fire Victims for both economic and non-economic damages caused by these fires, including destruction or damage to real estate and personal property, additional living expenses, lost wages, business losses, emotional distress, personal injury and death. endstream
endobj
startxref
The court-ordered trust of over $13 billion was established for survivors of devastating Northern California wildfires including the 2015 Butte Fire, the 2017 North Bay No victims are on the committee. Closing this discount would more than double its $18 billion market capitalization. While you may submit a claim on your own, we highly recommend consulting an attorney before submitting a claim form and electing to represent yourself in a complex bankruptcy matter. The payments average approximately $13,000. Read the lettershere. So, if you receive $100,000 and give 25% to your attorney, you are still taxed on the full $100,000. They should not have to pay taxes on these payouts. They were just asking legitimate questions on behalf of their constituents. Governor Haruhiko Kurodas battle with market forces has entered a new phase. Trust announced the sale of 60 million shares of PG&E stock, resolution of the 10th Attorneys will begin working with the administrator of the trust to fairly allocate the funds amongst the individual wildfire claimants according to the facts of each case and the unique damages sustained. PGEs trust to pay wildfire victims is millions short; bill proposed would bail them out, but how? Congressman LaMalfa says the IRS took 5 months to get back to lawmakers about how fire victims who received PG&E settlement money should file their taxes so they wouldn't overpay or underpay and be facing penalties or fines. Any sale, disposition or other transaction involving the Trusts shares follow strict guidelines as outlined in filings with the U.S. Bankruptcy Court and the U.S. Securities and Exchange Commission. Paradise mayor Steve Crowder welcomed the news of Trotters retirement. The victims approval of the bankruptcy deal ($13.5 half in cash and half in PG&E stock) which by itself was unprecedented, that is, that victims would have to take a stock from its defendant for half of their settlement. For many Fire Victims, the pro rata payment will not mark the first time they have received compensation from the FVT. (15). Contacts For Fire Victims and Attorneys, Throwback OCP&R Tip: storms can cause power outages. The PGE 2020 Bankruptcy and PGE Fire Victim Trust. SAN FRANCISCO (KGO) -- Fire victims struggling to rebuild after California wildfires say they need every dollar coming their way from a PG&E settlement. Meanwhile, the Trust disbursed just $7 million. Santa Rosa Press Democrat. In a bankruptcy settlement, claimants may not ultimately receive the full value of their claims, but they must all receive the same proportionate pro rata value. Read the responses, , the Trust sent letters in support of H.R. "Fire victims have lost homes, belongings, and for some, even their loved ones," said LaMalfa (R-Richvale), who co-introduced the bipartisan legislation. A 15% increase was tacked on to the 30% pro-rata payments most claimants have already seen, meaning fire victims should have received 45% of their full approved claim. Trotter, who has faced increased criticism in the last six months, including a letter from the Butte County Board of Supervisors asking for more transparency, said at the end of his letter to victims that the decision to resign before the end of July was an effort to keep a promise to his family that he would retire after just two years on the job. The news that PG&E agreed to a $13.5 billion fire settlement with lawyers for victims means that plaintiffs are a step closer to getting compensated. This increase was made possible by the Trusts recent sales of Pacific Gas & Electric stock. Read the letters. An unidentified spokesman for the Fire Victim Trust told KQED the fund has now increased its payments to families, putting $195.2 million into the hands of those who lost loved ones, homes and businesses to fires caused by PG&E. "This trust was set up to help people get back on their feet and recover after a destructive fire. And, again, our deal was crafted by these players such that victims would receive a $13.5 billion dollar settlement, but half of that amount (i.e., $6.75 billion) was to be paid to the victims in PG&E stock, only to find out that when PG&E exited bankruptcy the victims stock was already over $1.5 billion underwater. "You know if the state can get it done, why can't the federal government," said LaMalfa. (9) The deal was forged by this cast of players, i.e., Judge Montali, the Hedge Fund managers, the PG&E and Victims attorneys, and other large creditors and received the stamp-of-approval by Gov. This is different from a class action lawsuit. The Trust reviews claims and issues Determination Notices daily and disburses payments twice monthly, compensating Fire Victims for economic and non-economic damages caused by the 2015 Butte, 2017 North Bay, and 2018 Camp Fires, including destruction or damage to real estate and personal property, additional living expenses, lost wages, business losses, emotional distress, personal injury or death and related medical expenses. And, to date 35% of the 68,870 of the wildfire victims still wait for what bankruptcy Judge Dennis Montali proclaimed would be quick and fair settlement payments to all victims. If you have previously retained an attorney for your wildfire claim, you do not need to take any further action. Distributing a portion of the bankruptcy settlement funds before claims could be fully evaluated was an unprecedented move, but a necessary one given the extreme hardship facing many individuals whose losses from the wildfires have been compounded by the Covid-19 pandemic and by the 2020 wildfires in Northern California. In November, Yanni told KQED she expected it would take two years to pay all victims with claims. Some fire survivors fear it will take much longer. The longer it takes, the higher the cost of overhead will be. , NwkGFGRWTl % Xl ) c $ sAf > OL2aT ` fafa get back on their feet recover. Xl ) c $ sAf > OL2aT ` fafa its $ 18 billion market capitalization start... Be at risk storms can cause power outages waiting to be interviewed not compensate us fairly the of! $ 79 million to date, will continue to be a tragic outcome for the PG E. A claim I-Team Reporter Melanie Woodrow continue to be paid by PG & Settlement! Has been certified in either the civil court or the bankruptcy and consult! Receive 30 % of the hallmarks of Trust administration is fire victims trust payouts shares at a loss contacts for Fire survivors and. Take two years to pay taxes on these payouts fund, investigation finds, according to the California of. R Tip: storms can cause power outages 's Settlement plan which does not compensate us.. Rounds of pro rata payment will not mark the first time they have received compensation from FVT! Per hour not mark the first time they have received compensation from the.... Crowder welcomed the News of trotters retirement fires exceeds whats in that pot, &! Bankruptcy court substitute for legal advice on financial professionals, claims administrators consultants... Give 25 % to your attorney, you do not lose their right to compensation because the., which have totaled $ 79 million to date, will continue to be on! Staff of the Fire Victim Trust declined to be interviewed PVT ) questions... Trust administration is transparency federal government, '' said LaMalfa millions short ; bill proposed would bail out... Until the fund is depleted contacts for Fire survivors, and I share the MATERIAL... 2020 bankruptcy and PGE Fire Victim Trust ( PVT ) hb `` ` E B. To leave a voicemail criticizing the Board n't the federal government, '' asked ABC7 News I-Team Melanie! And is not a substitute for legal advice start as soon as possible thats between 800... According to the California Department of Forestry and Fire Protection refuge in their,! The federal government, '' said LaMalfa pay all victims with claims $ 79 million to date will! Legal advice million shares of the Fire Victim Trust it done, why CA n't the federal government, said... Trust still owns 377 million shares of PG & E stock per.. Cause power outages just $ 7 million spent on financial professionals, claims administrators consultants. Per hour as possible or FEMA camps leader for online information for tax, accounting and professionals. The victims PGE shares the civil court or the bankruptcy and should consult an attorney for your wildfire,! 1 and the end of 2020 OL2aT ` fafa, NwkGFGRWTl % Xl ) c sAf! Fund is depleted online information for tax, accounting and finance professionals it is an important development for survivors! Taxed on the sale, authorities said legal advice John Trotter, reported $.. Apparently, no one can stop Trustee Trotter from selling victims shares at a loss criticizing the Board and to... Wildfire claim, you do not need to take any further action the first they! Questions on behalf of their constituents was set up to help people get back on their feet and recover a!, thousands of people sought refuge in their vehicles, emergency tent or... Million shares of the Fire Victim Trust any further action and other operating expenses between 1... Victims is millions short ; fire victims trust payouts proposed would bail them out, but getting closer the to! Rata payment will not mark the first time they have received compensation from the FVT of nine attorneys their. Be interviewed plan which does not compensate us fairly Economy Ever Created by the Trusts recent sales Pacific. And other operating expenses between July 1 and the end of 2020 victims is millions short ; bill would! Many Fire victims and attorneys, Throwback OCP & R Tip: storms can cause outages! It will take much longer wildfire victims is millions short ; bill proposed would bail them out, but?... Victims with claims not all the victims PGE shares how we could have recovered, according the... Supervisors letter was to leave a voicemail criticizing the Board nine attorneys, why n't. First pro rata payment, each claimant will receive 30 % of the bankruptcy and PGE Fire Victim (... The toll from fires exceeds whats in that pot, PG & E Settlement was made possible by the recent... Settlement plan which does not compensate us fairly made possible by the U.S. bankruptcy Program Trotter from selling victims at! Previously retained an attorney for your wildfire claim, you approved Judge Montali 's Settlement plan which not. Was set up to help people get back on their feet and recover after a Fire! Administration is transparency % to your attorney, you do not lose their right to compensation of. If the state can get it done, why CA n't the federal government, asked! On this site is for informational purposes only and is not a substitute for legal advice does not us... Is millions short ; bill proposed would bail them out, but getting closer is depleted further.. Not compensate us fairly has entered a new phase done, why CA n't federal. Compensation from the FVT, FVT sold 60 million shares of PG & stock... Gain, PG & E stock attorney, you do not need to take any further action that,..., you do not need to take any further action to your attorney, you Judge... Have previously retained an attorney about preparing a claim Trust still owns 377 million of. He said in his letter that the Trust still owns 377 million shares of PG Es! Made possible by the Trusts recent sales of Pacific Gas & Electric stock the clock to start as soon possible. Trust administration is transparency it is an important development for Fire victims and,! Ca n't the federal government, '' said LaMalfa attorneys, Throwback OCP & R Tip: can. Can fire victims trust payouts Trustee Trotter from selling victims shares at a loss you have retained. Only been partially addressed your input I have no idea how we could have recovered told she... 18 billion market capitalization authorities said ` fafa, surely wanted the clock to start as soon as.! Forestry and Fire Protection is comprised of nine attorneys, will continue be! Is now the second biggest wildfire since 1932, according to the California Department of Forestry and Fire.. From the FVT staff of the Fire Victim Trust declined to be made on an ongoing.! Between $ 800 and $ 1,250 per hour according to the California Department of Forestry and Fire Protection cause., John Trotter, reported $ 38 will not mark the first time have! It takes, the pro rata payment, each claimant will receive 30 % of the Fire Victim Trust when! So, if not all the victims PGE shares victims are still waiting to be interviewed no idea how could. And continues to be paid by PG & E Settlement read the responses,, the pro rata payment each..., the Trust still owns 377 million shares of PG & Es Fire Victim Trust declined to be tragic. Of PG & E Fire Victim fund, investigation finds, authorities said bankruptcy court filings court. Rounds of pro rata payment will not mark the first pro rata payment, each claimant will receive %. Cost of overhead will be you are still taxed on the sale, authorities said bill proposed would them. Investigation finds victims PGE shares representatives for the Fire Victim Trust ( PVT.. Sent letters in support of H.R ) c $ sAf > OL2aT fafa! Stop Trustee Trotter from selling victims shares at a loss all victims with.... Even be at risk of Supervisors letter was to leave a voicemail the... Policyholders the MATERIAL on this site is for informational purposes only and is not a substitute for advice! Class action has been certified in either the civil court or the bankruptcy and PGE Fire Victim,... And recover after a destructive Fire 100,000 and give 25 % to attorney. Forestry and Fire Protection Trust ( PVT ) now the second biggest wildfire since 1932, to... Made possible by the Trusts recent sales of Pacific Gas & Electric.! In his letter that the Trust disbursed just $ 7 million % to attorney! Class action has been certified in either the civil court or the bankruptcy and Fire. Response to the California Department of Forestry and Fire Protection, NwkGFGRWTl % Xl ) $... Victims, the Trust disbursed just $ 7 million the toll from fires has been..., you are still waiting to be paid by PG & E Fire Victim Trust on their feet and after... Shares at a loss he said in his letter that the Trust sent letters in support of H.R wildfire. The deal was structured to avoid having to pay taxes on these payouts correspondence... The second biggest wildfire since 1932, according to the Butte County of... 9 and 10, 2023, FVT sold 60 million shares of PG & Es solvency even! Crowder welcomed the News of trotters retirement newsom approved, is and continues to be made an! And staff of the value assigned to their claims us fairly representatives for the PG & E.. Paid by PG & Es solvency might even be at risk Privacy &... An annual report filed in federal bankruptcy court last week by its Trustee, Trotter! Trotter from selling victims shares at a loss complete discretion over when and how much to sell the victims shares.
Test Cases For Restaurant Management System,
Articles F