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PG&E Urges Bankruptcy Court To Change Inverse Condemnation Rule

California utility giant PG&E Corp. asked the bankruptcy court to declare invalid the state’s legal doctrine that holds it responsible for fires caused by its equipment regardless of negligence.

The Oct. 25 request, which was joined by its creditors and shareholders’ groups, said applying the doctrine, known as “inverse condemnation,” to utilities is unconstitutional because it amounts to “an unlawful taking without just compensation.”


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