Updates on the McKinney Fire Lawsuit

Reg Reinoso

Author

July 2024 McKinney Fire Settlement Update

Attorney Mikal Watts, alongside Watts Law Firm LLP partner Guy Watts and co-counsel Darrin W. Mercier, are pleased to represent clients in the settlement proceedings following the McKinney Fire. With the Confidential Settlement Agreement and Release now signed and submitted to PacifiCorp, also known as Pacific Power, several critical steps are underway as we await the funding of the settlement.

Settlement Administration and Funding Process

To efficiently manage and distribute the settlement funds, our firm has successfully petitioned to open a Qualified Settlement Fund (QSF). The court has appointed Milestone, a nationally recognized QSF Administrator, to oversee the collection and distribution of the settlement proceeds. This strategic move is designed to facilitate the prompt and accurate delivery of funds to our clients.

Once PacifiCorp wires the settlement funds into the QSF, Milestone will administer the distribution directly to our McKinney Fire clients. We are coordinating closely with Milestone to tailor the distribution process to meet the varied needs and preferences of our clients, including the possibility of direct electronic transfers into individual bank accounts.

Legal Compliance and Client Disbursements

Before distributing the funds, Milestone will conduct necessary due diligence such as bankruptcy searches and checks for outstanding child or spousal support liens, as required by California state law. This ensures that all legal obligations are met before any disbursements.

Each client will receive a Closing Statement from Milestone, detailing the Gross Settlement Amount, attorneys’ fees, shared litigation expenses, and any case-specific costs, such as arborist reports. This statement will confirm your Net Settlement Amount, which was estimated during our initial discussions about the settlement offer. You will have the opportunity to review and approve this statement before receiving your settlement via your chosen method.

Additionally, as part of the settlement process for claims that include personal injury and emotional distress, it is necessary to comply with federal law by investigating any potential medical liens from Medicare, Medicaid, or MediCal. To facilitate this, we engaged Massive, a national lien resolution firm, to identify and resolve any such liens. We have already collected Medical Authorizations from all involved parties, allowing Massive to access only those medical records related to injuries sustained from the McKinney Fire.

To manage the distribution within households represented by more than one person, we required a signed Family Settlement Agreement from each household member, which has been completed. This information will help Milestone in creating accurate and individualized Closing Statements for each household member.

PacifiCorp is expected to fund the settlement into the Qualified Settlement Fund within 30 days of receiving the signed settlement agreements, which were finalized and sent on June 21, 2024. We anticipate being ready to generate and distribute Closing Statements shortly after the funds are transferred.

We sincerely appreciate your cooperation and patience throughout this settlement process. Our team is committed to ensuring that the distribution of your settlement proceeds is handled as swiftly and efficiently as possible. We look forward to assisting you over the coming weeks and ensuring you receive your settlement promptly.

This update is for informational purposes only and is not a substitute for legal advice.