As the court-appointed Trustee of the Fire Victim Trust (FVT), I write to provide factual information concerning recent statements regarding the Fire Victim Trust processes and payments to claimants and attorneys.
The Trust was established in 2020 pursuant to the confirmed plan of reorganization in PG&E's bankruptcy case and was charged with evaluating, administering, and resolving claims arising from certain Northern California wildfires. As Trustee, I oversaw the administration and distribution of $14.28 billion in Trust assets to over 70,000 claimants with over 250,000 distinct claims. Because the Trust's operations and distributions are matters of public record, I believe it is important that discussions concerning the compensation of wildfire survivors and their attorneys be grounded in accurate information.
First, Trust distributions were made to claimants pursuant to established Trust procedures and court-approved processes. The Trust did not make separate distributions to attorneys independent of their clients, nor were attorneys compensated before their clients received payment on their claims.
Second, the Fire Victim Trust was not a class action settlement. No money was paid to class members, or class action attorneys. The Trust evaluated and resolved individual claims and determined award amounts based on the evidence submitted by claimants, the Trust Distribution Procedures, and applicable California law. Following adjudication of those claims, the Trust distributed funds over the course of five years on a pro rata basis in accordance with applicable bankruptcy law as funds became available. Attorney compensation was based on fee agreements between individual claimants and their counsel. Many law firms utilized independent escrow agents to administer distributions and provide claimants with detailed accounting statements reflecting the allocation of funds.
Third, the Fire Victim Trust conducted its work pursuant to the confirmed bankruptcy plan, applicable court orders, and publicly available Trust procedures. Documentation regarding the Trust, its claims administration process and distributions, remain available through court filings and Trust reports.
