Wildfires can cause terrible damage. Fires burn homes, destroy neighborhoods, and force entire communities to rebuild. Sometimes, a big corporation’s electrical equipment can spark these fires. When that happens, people who lose property or suffer harm can get money from certain funds set up by the courts or law. One special Fund is the Wildfire Victim Trust Fund in California.
Why Was the Wildfire Victim Trust Fund Created?
Wildfires in California can be huge. Sometimes, an electrical corporation’s equipment starts or spreads the flames. When large groups of people suffer because of these fires, there must be a way to pay for the damages.
Around 2019 and 2020, a major California utility company, Pacific Gas and Electric (PG&E), went through bankruptcy court proceedings because of claims from wildfires like the Butte Fire, the North Bay Fires, and the Camp Fire. These disasters caused massive destruction and led to many lawsuits.
The court established a special trust as part of the bankruptcy case (case number 19-30088 in the U.S. Bankruptcy Court for the Northern District of California). The Trust provides settlements or payments to people who suffered losses in these wildfires. That special account is known as the Wildfire Victim Trust Fund.
Which Wildfires Does the Trust Cover?
The Wildfire Victim Trust Fund covers certain major fires tied to PG&E’s equipment. These include:
- Butte Fire
- North Bay Fires
- Camp Fire
If you suffered losses in one of these fires and meet the eligibility requirements, you may qualify for a payment from the Trust. This Fund does not cover every wildfire in California. It is limited to these specific events that were part of the bankruptcy deal.
Who Can Get Money From the Wildfire Victim Trust Fund?
People who owned or lived on property in the counties affected by these major fires might qualify if they had real damages. For example, you might file a claim if your house burned down in the Camp Fire and you believe PG&E’s equipment started that fire.
The official terms may say “qualified taxpayers” or “qualified claimants.” But, in plain language, it means anyone who:
- I was in the area of one of these specific fires
- Had loss or damage linked to the fire
- Meets the legal conditions laid out by the Trust
Some claimants might have lost a home, suffered injuries, or seen their business burn. The Trust’s job is to review each claim and determine how much the person deserves based on the damages and the Trust's rules.
How Is the Wildfire Victim Trust Fund Different From the Wildfire Fund Under Public Utilities Code § 3284?
California also has another pot of money, sometimes called the “Wildfire Fund,” set up under Public Utilities Code § 3284. That Fund helps electrical corporations handle certain wildfire claims going forward. It is managed separately, with rules about when and how it pays.
Avoid confusing the “Wildfire Victim Trust Fund” from the PG&E bankruptcy with the “Wildfire Fund” created under California law. Although they share a similar name, they are not the same. The Wildfire Victim Trust Fund focuses on past fires (Butte, North Bay, Camp) linked to PG&E, while the general Wildfire Fund can help with future or different claims involving participating utilities.
How Was the Wildfire Victim Trust Fund Approved?
The bankruptcy court officially approved the Fund as part of a plan to resolve the PG&E bankruptcy. The court’s order came on June 20, 2020. By creating this Trust, PG&E set aside billions of dollars (in cash and company shares) to pay valid claims from victims of these big fires.
Because this was part of a federal bankruptcy proceeding, it has legal backing from the court. That means the Trust follows the rules outlined in the bankruptcy filings and related agreements.
What Kinds of Losses Can the Trust Help With?
The Trust might pay for several types of losses, such as:
- Property Damage: If flames damage your home, other buildings, or land.
- Personal Property: Items like furniture, cars, or other belongings lost in the fire.
- Emotional Distress or Wrongful Death: If you or a loved one faced serious harm or loss of life due to the fire, the Trust can consider these claims.
- Business Losses: If the fire damaged your store or business, or if it interrupted your income.
- Other Losses: Each case can differ, so the Trust reviews claims individually.
Is the Trust the Same as an Insurance Company?
No. The Wildfire Victim Trust Fund is not an insurance company. It is a separate entity that receives money from PG&E’s bankruptcy plan. An insurance policy is a contract you have with a private insurer, and that insurer may pay you if your policy covers wildfire damage.
But if you have a claim under this Trust, you believe PG&E’s actions (or failures) contributed to the fire that harmed you. That is different from making a claim on your homeowner's insurance for fire damage.
You may file insurance and trust claims, but each follows its process.
What Are Settlement Amounts Received From the Fire Victims Trust?
When you get paid from the Trust, the payment is sometimes called a “settlement amount.” It is a settlement because it resolves your claim that the utility company was at fault.
California’s tax code sections § 24309.3 and § 17138.5 (now repealed as of January 1, 2028, but important for historical reference) discuss these settlement amounts. They outline how the payments may count for tax purposes. You might have to pay taxes when you get money from a legal settlement. These special sections guided how the Fire Victims Trust should manage some settlement amounts.
Tax issues can be complicated, so consult a tax professional or lawyer if you have questions about how the payment affects your taxes.
Why Are Some Payments Made in PG&E Stock?
Part of PG&E’s plan involved giving a chunk of the company’s stock to the Trust instead of all cash. This means the Trust can sell those shares to raise money for claims. Theoretically, if PG&E’s stock price increases, the Trust might have more funds to pay victims.
However, the total value might also drop if the stock price decreases. This can affect how quickly and fully the Trust can pay out claims. The fund managers try to balance this risk by selling stock at certain times and distributing cash to claimants.
Is There a Deadline to File a Claim?
Yes. Usually, the main deadlines to submit claims to the Wildfire Victim Trust have passed. As part of the bankruptcy process, the court set “bar dates”—final deadlines by which victims needed to file. But if you never filed, you might want to check with a California wildfire litigation lawyer to see if any exceptions are left.
If you filed by the court’s deadline, your next step might be to work with the Trust’s administrators to prove your losses. They might request documents showing your property value, photos of the damage, or proof that you lived in the affected area.
How Does the Claims Process Work?
The Trust has a process for reviewing each claim. It might look like this:
- Submission of Claim Forms: Claimants fill out detailed paperwork explaining their losses.
- Review by Trust Administrators: The Trust staff reviews the evidence. If something is missing, they might ask you to provide more data.
- Preliminary Offer: The Trust might give you a proposed payment amount.
- Acceptance or Appeal: If you think their offer is too low, you can accept it or ask for reconsideration.
- Final Payment: Once both parties agree, the Trust pays you some or all of your settlement.
They may do this in waves, so do not worry if you see others getting paid before you do. There are a lot of people who filed claims, and the Trust can only handle so many at a time.
What Happens if You Disagree With the Amount?
If the Trust offers less than you believe you deserve, you can often appeal within the system. That means you explain why you think you should get more. You might need to submit extra proof—like receipts, appraisals, or professional reports.
The Trust might then consider your new information, raise your payout, or stick to their earlier amount. If you still do not agree, you can pursue further appeals or dispute resolutions within the Trust’s procedures.
This can be complicated, so many people work with lawyers who understand how to present claims effectively.
Can You Still Sue the Utility Company Directly?
In many cases, no. The bankruptcy plan set up the Trust so that wildfire victims will no longer take their claims to court directly against PG&E for these specific past fires. Instead, they must go through the Trust if they filed on time.
If you try to sue PG&E for these same fires, bankruptcy court orders will likely stop you. The Trust serves as the path to compensation.
How Long Will It Take to Get Paid?
It can take a while. When many people file claims, the process can become lengthy. The Trust has to review all claims, confirm the losses, and figure out how much money to distribute.
The manager of the Trust issues partial payments (sometimes called pro rata payments) as funds become available. That means you might get a certain percentage of your final award now and the rest later, depending on how much stock or cash the Trust has at a given time.
How Does a California Wildfire Litigation Lawyer Help?
Applying to the Trust can be tricky. You might need to prove:
- You lived in or owned property in the fire zone.
- Your property truly burned because of the wildfire.
- The cost to repair or replace your property.
- Other damages, like emotional distress.
A California wildfire litigation lawyer can help gather evidence, fill out forms, and negotiate with the Trust administrators. They can also advise on any appeals if you get a low offer.
If you have never filed a claim or are unsure if you can, a lawyer can explain your options. They stay current on deadlines, paperwork, and changes in how the Trust pays claims.
What If There Are Disputes Over the Cause of the Fire?
The Trust generally assumes PG&E’s role in these fires as part of the bankruptcy settlement. For these specific fires, the issue isn't whether PG&E caused them—it's about determining the compensation each victim should receive.
However, if you have a different wildfire the Trust does not cover; you must prove which party caused it. That might mean a separate lawsuit or a different claim. But that is not what the Wildfire Victim Trust Fund is for. It only applies to the Butte, North Bay, and Camp Fires.
Can There Be More Fires Covered in the Future?
This specific Trust only covers the fires named in the bankruptcy settlement. If another major wildfire occurs later and a utility is responsible, it can lead to a separate settlement or a different trust. However, it will not affect the existing Wildfire Victim Trust for PG&E’s earlier fires.
California law also creates a separate "Wildfire Fund," which may cover future fires if certain conditions apply. But that program differs from the one we are discussing here.
Do You Need Proof of Your Losses?
Yes. The Trust needs to see that you truly suffered damage from the wildfire. This might include:
- Photos or videos of your home before and after the fire
- Insurance statements (if you had coverage)
- Bills or receipts for repairs
- Deeds or rental agreements showing you owned or rented the property
- Documents showing your personal belongings, like an inventory list
The more proof you can show, the easier it may be for the Trust administrators to evaluate your claim. Sometimes, you can provide sworn statements or other evidence if you are missing documents.
How Can a California Wildlife Litigation Lawyer Help With Paperwork and Deadlines?
A California wildfire litigation lawyer can:
- Make sure you meet or meet any relevant claim deadlines.
- Gather detailed evidence of your losses.
- Fill out claim forms correctly.
- Handle any appeals within the Trust’s system.
- Explain tax or legal issues tied to settlement money.
Lawyers are used to dealing with complicated processes, so they can save you time and reduce stress.
A California Wildlife Litigation Lawyer Can Guide You
The Wildfire Victim Trust Fund in California is a special account created after PG&E’s bankruptcy to compensate people harmed by three major wildfires: the Butte Fire, the North Bay Fires, and the Camp Fire. It differs from the state’s separate Wildfire Fund and is not the same as filing an insurance claim.
If you filed a timely claim, this Trust might relieve your losses. However, the process can be slow and involves paperwork, evidence, and sometimes negotiations over how much you will get. The Trust holds cash and PG&E stock, creating extra challenges when the stock price shifts.
A California wildfire litigation lawyer can guide you if you have questions about the Trust, need help with an appeal, or want to explore other legal options. If you believe you qualify for this Trust and have not taken any action yet, or if you are confused about the next steps, talk to a lawyer who understands wildfire claims.
Are you ready to learn more about your rights and options? Call 1-800-WILDFIRE and contact a California wildfire litigation lawyer today. They can guide you through the Wildfire Victim Trust Fund process, advocate for your interests, and work to secure the compensation you deserve. You do not have to face this alone—skilled legal help is just a call away.