PG&E asks court to enjoin 22 lawsuits against non-debtor defendants

By Caroline Salls

Pittsburgh, Feb. 19 – PG&E Corp. filed a complaint on Friday with the U.S. Bankruptcy Court for the Northern District of California that seeks an injunction against the filing of 22 actions against non-debtors.

“The debtors are currently engaged in a complex reorganization that has only just begun and requires their full attention in order to preserve assets of the estates and work toward a successful emergence from Chapter 11,” the complaint said.

Although the lawsuits in question are stayed in connection with the PG&E Chapter 11 debtors, the company said they would “irreparably harm the debtors if allowed to proceed against the non-debtor co-defendants.”

PG&E said the actions it is asking the court to enjoin include a securities class action against the debtors and their current and former officers for alleged misstatements related to the debtors’ anti-wildfire practices and procedures.

The second category of lawsuits included 19 separate actions, with one alleging complex commercial claims, 12 alleging torts related to motor vehicle accidents, four alleging employment law violations and two alleging breaches of contract.

The company said the third category encompasses a single negligence action against the debtors and their contractors for damages related to the 2018 Northern California wildfires, and the fourth category encompasses a single negligence against the debtors and a third party for alleged damages related to the conditions on a utility worksite.

“The debtors are the real parties in interest, and any finding against the non-debtor defendants would, in essence, constitute a finding against the debtors without affording them an opportunity to mount their own defense,” the complaint said.

The electric and natural gas utility is based in San Francisco. The company filed bankruptcy on Jan. 29 under Chapter 11 case number 19-30088.

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