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Bankrupt Texas Co-Op Brazos Approved to Chill Storm Damage Claims

Submitted by jhartgen@abi.org on

Texans left in the dark during February’s winter storm blackout now risk being frozen out from claiming damages from Brazos Electric Power Cooperative Inc. and Griddy Energy LLC as the bankrupt power companies rush to shield themselves against potential claims for property damage and wrongful death, WSJ Pro Bankruptcy reported. The Houston judge overseeing Brazos’s bankruptcy proceedings said Thursday the cooperative only needs to place notices in newspapers and a magazine to alert Texans about the requirement that they file claims to seek compensation over the deadly February storm. Under the judge’s ruling, those published notices about the Brazos chapter 11 case are enough to alert potential claimants that their rights are at risk and failure to respond by the August deadline would strip them of their chance to collect damages from Brazos. Among the claimants in the Brazos bankruptcy is Larry Ford, son of Elzie D. Ford, a 68-year-old man who was found frostbitten and unresponsive in his home five days after losing power and heat in below-freezing temperatures, according to court papers filed by the younger Mr. Ford. He died in a Waco, Texas, hospital on Feb. 20. Mr. Ford filed a claim against Brazos and sued others including HILCO Electric Cooperative Inc., one of the member cooperatives that collectively own Brazos, alleging negligence when the power was cut to his father’s house. The Texas Department of State Health Services is still tallying the fatalities but has identified 151 deaths related to Winter Storm Uri as of Wednesday. Some Texans are continuing to repair homes damaged by burst pipes. “They shouldn’t wake up and find out” their legal rights against Brazos were washed away just months into its bankruptcy, said Thomas Mayer, lead lawyer for the unsecured creditors committee, during a hearing on Thursday in the U.S. Bankruptcy Court in Houston. The committee wanted a broader noticing program to reach out to potential claimants, saying that Brazos could easily alert its 1.5 million customers directly by text messages, emails and direct mailing of the deadline to file claims. Brazos said the customer lists belong to its member cooperatives, which have refused to hand over the information. Mr. Mayer said customers who try to sue member cooperatives for personal injury or property damage will be met with the argument that any negligence was Brazos’s fault. By that time, the deadline to file claims against Brazos may have passed.