ML022960331
| ML022960331 | |
| Person / Time | |
|---|---|
| Site: | Diablo Canyon  |
| Issue date: | 10/03/2002 |
| From: | Damlos B Howard, Rice, Nemerovski, Canady, Falk & Rabkin, Pacific Gas & Electric Co |
| To: | Office of Nuclear Reactor Regulation, US Federal Judiciary, Bankruptcy Court, Northern District of California |
| References | |
| 01-30923 DM, 94-0742640 | |
| Download: ML022960331 (3) | |
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9 10 11 In re PACIFIC GAS AND ELECTRIC COMPANY, a California corporation, Debtor.
Federal I.D. No. 94-0742640 Case No. 01-30923 DM Chapter 11 Case Date:
Time:
Place:
Judge:
October 29, 2002 1:30 p.m.
235 Pine Street, 22nd Floor San Francisco, California Hon. Dennis Montali DECLARATION OF BARBARA J. DAMLOS IN SUPPORT OF MOTION OF PACIFIC GAS AND ELECTRIC COMPANY FOR ORDER AUTHORIZING ASSUMPTION OF CERTAIN PRE-PETITION SETTLEMENT AGREEMENTS 4,
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~,y 6W DAMLOS DECL. ISO MOT. FOR ORDER AUTHOR. ASSUMPTION OF SETTLEMENT AGREEMENTS A
JAMES L. LOPES (No. 63678)
JANET A. NEXON (No. 104747)
HOWARD, RICE, NEMEROVSKI, CANADY, FALK & RABKIN A Professional Corporation Three Embarcadero Center, 7th Floor San Francisco, California 94111-4065 Telephone:
415/434-1600 Faicsimile:
415/217-5910 Attorneys for Debtor and Debtor in Possession PACIFIC GAS AND ELECTRIC COMPANY UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF CALIFORNIA SAN FRANCISCO DIVISION 12 HOWARD 13 RKE Gmt.N,.D 14 1BUK
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1 1, Barbara J. Damlos, declare as follows:
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I am an attorney licensed to practice law in the State of California and 3
admitted to practice in the United States District Court for the Northern District of 4
California. I am an attorney in the litigation department for Pacific Gas and Electric 5
Company ("PG&E"), a position I have held since May, 1997. I make this Declaration based 6
upon my personal knowledge of PG&E's litigation and claims resolution process and upon 7
my review of PG&E's records concerning the matters stated herein. If called as a witness, I 8
could and would testify competently to the facts stated herein.
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I make this declaration in support of the Motion For Order Authorizing 10 Assumption of Certain Pre-Petition Settlement Agreements filed herein by PG&E (the 11 "Motion").
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The Motion seeks approval of the assumption of nineteen (19) settlement HOVO 13 agreements entered into by PG&E, as defendant in various personal injury actions, as listed NK 14 on Exhibit A to the Motion (the "Settlement Agreements"), a payment of amounts owed
&RAH1N 15 thereunder. Each of the Settlement Agreements resolves a personal injury action against 16 PG&E, and the amounts owed thereunder are payable to individual plaintiffs and their 17 respective counsel.
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The Settlement Agreements were entered into pre-petition, and in each case, 19 there are material unperformed obligations thereunder on the part of both parties. In each 20 case, the plaintiff has the obligation, so far unperformed, to execute a release and/or file a 21 dismissal of the action, while PG&E has the obligation to make a one-time payment. None 22 of the lawsuits have been dismissed as of the date hereof.
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As noted on Exhibit A to the Motion, the amount of the settlement 24 payments to be made by PG&E range from $6,000 to $200,000, with the average payment 25 being approximately $37,000.
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PG&E seeks this relief on the grounds that payment of the amounts owed 27 under the Settlement Agreements represents a minimal cost to the estate, while PG&E's 28 continued failure to make such payments may impose a serious hardship on the individual DAMLOS DECL. ISO MOT. FOR ORDER AUTHOR. ASSUMPTION OF SETTLEMENT AGREEMENTS 1
plaintiffs who are parties to the Settlement Agreements.
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The Settlement Agreements are executory in nature. Pursuant to the 3
Settlement Agreements, the plaintiffs have the obligation to execute releases and to dismiss 4
their actions with prejudice, while PG&E has the obligation to make certain payments to the 5
plaintiffs. The plaintiff's release and dismissal of the action is a necessary component of 6
each Settlement Agreement. If the plaintiff fails to sign the release and to dismiss the action, 7
the cause of action is not extinguished, and the obligation of the Debtor to pay the settlement 8
amount would be excused.
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The amount necessary to cure the amounts owed under the Settlement 10 Agreements is $697,499 in the aggregate. I am informed and believe and thereupon allege 11 that PG&E has substantial cash reserves and ongoing revenues, as demonstrated in 12 numerous filings before this Court, and is capable of curing arrearages and completing its HOWN 13 future performance under the Settlement Agreements.
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The Debtor's continued inability to make payments under the Settlement
&RAN(N 15 Agreements may impose hardships on the plaintiffs party to the Settlement Agreements, who 16 are involuntary creditors of the Debtor. Additionally, the total amount of money the Debtor 17 requests to pay ($697,499) represents a very small percentage of the Debtor's total assets, 18 with the average amount owed to each plaintiff under the Settlement Agreements being 19 approximately $37,000.
20 I declare under penalty of perjury under the laws of the United States of America 21 and the State of California that the foregoing is true and correct. Executed this3 J day of 22 October, 2002 at San Francisco, California.
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24 BARB41A J. DAMLOS 25 26 27 28 WD 100302/1-1419905/120/1026598/vl DAMLOS DECL. ISO MOT. FOR ORDER AUTHOR. ASSUMPTION OF SETrLEMENT AGREEMENTS