The Case Study:

On the morning of 8 November 2018, California saw its deadliest and most destructive wildfire in history consume the entire town of Paradise. Originating from Camp Creek Road, the 'Camp Fire' quickly spread across 153,336 acres over the course of 17 days, destroying more than 19,000 buildings and claiming 85 lives. The incident sparked an investigation by Californian regulators, which revealed that the ignition was caused by electrical transmission lines owned and operated by Pacific Gas and Electricity Company (PG&E). PG&E faced heavy financial penalties and criminal charges of involuntary manslaughter relating to one of the most devastating wildfire incidents in California. Initially, its liability was estimated to exceed US$30 billion, more than three times the company's market value of just over US$9 billion. This led to the resignation of Chief Executive Officer Geisha Williams. Almost three months after the outbreak of Camp Fire, PG&E filed for Chapter 11 with the United States Bankruptcy Court in the Northern District of California. The objective of this case is to facilitate a discussion of issues such as board composition; board responsibilities; corporate culture; remuneration; risk management; and external environmental, social, and governance (ESG) ratings.

The Question:

1.

The following areas of law are relevant to this case study: Corporations Law, Environmental Law, Administrative Law, Criminal Law, Competition and Consumer Law, Property Law, Tort Law, Energy Law, Employment Law, and Contract Law. With reference to the facts in the case study, describe how three (3) of these areas would apply to bring justice to those who have been wronged by the conduct of PG&E?

2.

Should the regulators be held accountable for the wildfire incidents? Discuss the role of regulators in this incident and evaluate whether the actions taken by the California Public Utilities Commission (CPUC) are sufficient in preventing future wildfire incidents