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No.: 19-3008 (DM – 1 – US_ACTIVE-169234472.2-RCARDOZO 10/3/22 3:03 PM

RESPONSE OF FORMER TRUSTEE TO MOTION OF ABRAMS 

REED SMITH LLP 

A limited liability partnership formed in the State of Delaware 

Raymond A. Cardozo (SBN 173263) 

rcardozo@reedsmith.com 

Christopher O. Rivas (SBN 238765) 

crivas@reedsmith.com 

REED SMITH LLP 

101 Second Street, Suite 1800 

San Francisco, CA 94105-3659 

Telephone: 415 543 8700 

Facsimile: 415 391 8269 

Specially Appearing Attorneys for Honorable 

John K. Trotter (Ret.) 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

SAN FRANCISCO DIVISION 

In re 

PG&E CORPORATION, 

 And 

PACIFIC GAS AND ELECTRIC COMPANY, 

Debtors, ⃞ Affects PG&E Corporation ⃞ Affects Pacific Gas & Electric Company ⃞ Affects bothDebtors 

*All papers shall be filed in the lead case, 

 No. 219-3008 (DM)

 Bankr. Case No. 19-3008 (DM) 

Chapter 11 

(Lead Case) 

(Jointly Administrated) 

RESPONSE OF FORMER TRUSTEE JOHN 

K. TROTTER TO MOTION OF WILLIAM 

B. ABRAMS PURSUANT TO FEDERAL 

RULE OF BANKRUPTCY PROCEDURE 

2004 FOR ENTRY OF AN ORDER 

AUTHORIZING DISCOVERY AND 

HEARINGS REGARDING THE ACTS AND 

CONDUCTS OF JAMS NEUTRALS GIVEN 

NEW EVIDENCE 

[RELATES TO DOCKET NO. 12766] 

HEARING TO BE DETERMINED BY COURT 

 Pursuant to the Court’s invitation at the September 13, 2022 hearing, non-party John K. 

Trotter, the retired former Trustee of the Fire Victims Trust (“Justice Trotter”), submits this response 

to the Motion of William B. Abrams Pursuant to Federal Rule of Bankruptcy Procedure 2004 for 

Entry of an Order Authorizing Discovery and Hearings Regarding the Acts and Conduct of JAMS 

Neutrals Given New Evidence [Docket No. 12766] (“Abrams Motion II”). 

Case: 19-30088 Doc# 13039 Filed: 10/03/22 Entered: 10/03/22 16:23:39 Page 1

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No.: 19-3008 DM 

 RESPONSE OF FORMER TRUSTEE TO MOTION OF ABRAMS – 2 – 

REED SMITH LLP 

A limited liability partnership formed in the State of Delaware 

I. INTRODUCTION 

This Court’s Order on Motion of William B. Abrams (Dkt. 12682, “Discovery Order”) 

granted the motion in part, denied it in part and provided for focused and relevant discovery. 

Nevertheless, based on purported “new evidence provided through LA Times reporting,” Mr. 

Abrams has now moved for, in his own words, “an order authorizing broad discovery and associated 

hearings.” The Abrams Motion II supposedly provides “sufficient ‘good cause’ for broad discovery 

to understand the degree to which the Fire Victim’s settlement and associated Fire Victim Trust 

Agreement” “were unduly influenced and potentially undermined by the role of JAMS in 

coordination with core parties within this case.” According to Mr. Abrams, his purported “new 

evidence” justifies expanding discovery far beyond what the Court ordered in its Discovery Order. 

At the September 13, 2022 hearing, this Court accurately described the so-called “new 

evidence” as a “newspaper report with no foundation.” (9/13/2022 Hg Tr. 34) Such inadmissible 

hearsay involving matters unrelated to this proceeding has zero relevance and sheds no light on 

whether the role of JAMS unduly influenced or potentially undermined the Fire Victim’s settlement 

and associated Trust. The LA Times reporting thus provides no cause at all, much less good cause, to 

permit the massive expansion of discovery that Mr. Abrams seeks. 

Because Mr. Abrams’ baseless innuendo is not just irresponsible, but harmful to the interests 

of justice, Justice Trotter submits this response to set the record straight on assertions that Mr. 

Abrams has made relating to Justice Trotter and his relationship with JAMS. Justice Trotter leaves 

the balance of the response to the Trust and current Trustee. 

II. ABRAMS’ “MOTION” VIOLATES RULE 11 AND SHOULD BE DENIED 

The Court correctly recognized that the malfeasance of attorney Thomas Girardi that was 

described in the LA Times articles is irrelevant here.1

 Although it may be unnecessary to respond to 

 

1 “Secondly, you paint with a very broad brush, and I am not prepared on your say-so to paint or taint 

-- paint or taint, pick your word, JAMS or anyone else with the sins of Mr. Girardi and what has 

come out in that case. Simply not -- we're not going there, and that is -- I agree with you if somehow 

this Fire Victim Trust, or through any of its representatives, has been tainted by misconduct, then 

there are consequences, perhaps. I agree with you. But I'm not about to say, Mr. Girardi and all of 

his failures, his personal, disastrous occasion for so many people, is not going to be imported and 

infused into this case because somehow Justice Trotter, who was selected in this case was also 

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No.: 19-3008 DM 

 RESPONSE OF FORMER TRUSTEE TO MOTION OF ABRAMS – 3 – 

REED SMITH LLP 

A limited liability partnership formed in the State of Delaware 

the inaccuracies in those articles as they relate to Justice Trotter, Justice Trotter elects to clarify 

certain facts, given the irresponsible fashion in which Mr. Abrams has not only further publicized 

inaccurate reporting, but also misstated even the inaccurate articles themselves.2 Attached as Exhibit 

1 is the statement that Justice Trotter published in response to the LA Times reporting. While Mr. 

Abrams included the unfounded assertions in the LA Times articles, and misstated even those, he did 

not include any part of Justice Trotter’s response. As that response makes clear, there are four key 

points that LA Times failed to accurately report: 

 All of Thomas Girardi’s misconduct involved his mismanagement of funds in 

his own clients’ trust accounts. Justice Trotter had no oversight or 

involvement in a private attorney’s management of his clients’ trust accounts. 

 Justice Trotter’s role in the matters reported in the LA Times article was the 

standard special master role of overseeing the process of reviewing claimants’ 

documentation of injury and making an “allocation”—a determination of the 

value of the claim. After the Special Master makes such allocations, the 

amount allocated is deposited into the trust account of the plaintiff’s attorney, 

and that attorney is then supposed to deduct her/his fees, case specific costs or 

other obligations, and then distribute the net payment to the plaintiff. Those 

attorneys had fiduciary obligations to their own clients to perform those 

deductions and distributions properly, and Justice Trotter had no oversight 

role in the attorneys’ performance of their fiduciary duties to their clients. 

 With regard to the Rezulin settlement, Justice Trotter was appointed with 

oversight of all aspects of the settlement process and review of the allocation 

process. The judge that approved the settlement also appointed a bank vice 

president “to implement the distribution of the settlement funds as directed by 

the Special Master.” Thus, Justice Trotter resolved the claims, and the bank 

paid them. Justice Trotter had no oversight of any disbursement activity. The 

LA Times failed to report this important fact or mention the appointment of a 

bank official to oversee disbursement. 

 It appears Girardi may have misused the reputation of the jurists involved in 

his cases to mislead his clients about what those jurists had ruled. Justice 

Trotter was not privy to any such misrepresentations. This is a problem that a 

malevolent attorney can cause with either a public or private judge. If such an 

attorney falsely tells his client “the judge approved this,” the judge is not privy 

to that attorney’s conversation with his client and has no ability to correct it. 

 

involved in some matter that involved Mr. Girardi, that the LA Times wants to make -- draw 

inferences about. I am not drawing inferences about it.” (9/13/2022 Hrg Tr. at 49.) 2 Mr. Molton provided a good example at the September 13, 2022 hearing: Whereas the LA Times

article stated that California’s Chief Justice had lamented the multifaceted victimization of injured 

people in the Girardi case, Mr. Abrams misstated the Chief Justice as having lamented the “influence 

of JAMS” in that victimization. (9/13/2022 Hrg. Tr. at 52.)

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No.: 19-3008 DM 

 RESPONSE OF FORMER TRUSTEE TO MOTION OF ABRAMS – 4 – 

REED SMITH LLP 

A limited liability partnership formed in the State of Delaware 

Mr. Abrams also makes inaccurate statements about Justice Trotter’s relationship with 

JAMS, so Justice Trotter provides the correct facts. Justice Trotter retired from JAMS in 2016, i.e. 

he stopped taking new cases at that time. He continued to work on cases he had undertaken before 

he announced his retirement, to finish those cases. Justice Trotter elected to come out of retirement 

to accept the position of Trustee of the Fire Victim’s Trust, but promised his family he would serve 

as Trustee for two years. See Dkt 12528, p. 7. In April 2020, Justice Trotter resigned from JAMS 

Panel participation and from JAMS ownership. He was appointed as Trustee of the Fire Victim’s 

Trust. On March 29, 2022, consistent with his earlier promise to his family, Justice Trotter gave 90 

days notice to the Trust Oversight Committee of his intent to retire as Trustee. See Exhibit 2. 

As a former owner of JAMS, Justice Trotter participated, until his April 2020 resignation, in 

a profit-sharing agreement among JAMS owners under which he received net deferred income for 

the period that he was a member of JAMS. These payouts were on a delayed basis that distributed 

earnings four years after the year in which the income was generated. Thus, Justice Trotter received 

net deferred income, in 2022, but it was based on income JAMS earned in 2018. 

Because none of what Abrams states in his motion is admissible in a court of law, and most 

of it is false and unsupported by any evidence, his motion violates Rule 11 of the Federal Rules of 

Civil Procedure. That is reason alone to deny his motion in its entirety. 

III. ABRAMS’ SMEAR CAMPAIGN HARMS THE INTERESTS OF JUSTICE 

The settlement and Fire Victims’ Trust are the product of tireless work from countless 

persons and entities. The settlement has provided and will continue to provide a massive amount of 

compensation to the injured, along with peace, finality and repose. The latter non-monetary benefits 

enable the injured to move on from traumatic experiences. “[T]here is an overriding public interest 

in settling and quieting litigation." United States v. McInnes, 556 F.2d 436, 441 (9th Cir. 1977). “It 

is well recognized that settlement agreements are judicially favored as a matter of sound public 

policy.” Speed Shore Corp. v. Denda, 605 F.2d 469, 473 (9th Cir.1979). 

Mr. Abrams has been critical of compensation going to professionals involved in this 

litigation, complaining that such compensation should go to the victims. But the reality of our legal 

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No.: 19-3008 DM 

 RESPONSE OF FORMER TRUSTEE TO MOTION OF ABRAMS – 5 – 

REED SMITH LLP 

A limited liability partnership formed in the State of Delaware 

system is that compensation of professionals is an inherent part of the resolution of tort claims. 

Private judicial services help the process by enabling courts with congested dockets to avail 

themselves of experienced former jurists and by giving parties access to highly skilled former jurists 

to facilitate resolution of complex matters that otherwise could be tied up in litigation for decades. 

By contrast, Mr. Abrams’ unfounded smear campaign is harmful and contrary to public 

policy. His evidence-free spree, of course, inflicts reputational harm on the persons who Mr. 

Abrams unfairly has smeared, like Justice Trotter. Our law recognizes that a false smear campaign 

is both wrongful and causes irreparable reputational harm. See Hustler Magazine, Inc. v. Falwell, 

485 U.S. 46, 52 (1988) (“False statements of fact are particularly valueless; they interfere with the 

truth-seeking function of the marketplace of ideas, and they cause damage to an individual’s 

reputation that cannot easily be repaired by counterspeech, however persuasive or effective.”). 

Mr. Abrams’ baseless claims also harm the parties and public by undermining confidence in 

the administration of justice. He falsely suggests, without evidence, that there are grounds to 

question the propriety and fairness of the settlement and its administration. Such evidence-free 

assertions improperly unsettle the beliefs of settling parties and the public and thereby threaten the 

salutary benefits of settlement and finality. (Cf. Sherman v. United States, 356 U.S. 369, 380 (1958) 

(Frankfurter, J., concurring) (“Public confidence in the fair and honorable administration of justice, 

upon which ultimately depends the rule of law, is the transcending value at stake.”); United States v. 

Salas, 602 F.2d 215, 217 (9th Cir. 1979) (“Every inroad on the concept of finality undermines 

confidence in the integrity of our procedures; and, by increasing the volume of judicial work, 

inevitably delays and impairs the orderly administration of justice.”); United States v. Montecalvo, 

533 F.2d 1110, 1112 (9th Cir. 1976) (“The appearance of fairness is as important as fairness-in-fact 

in maintaining confidence in the administration of justice in the minds of the public.”). 

Justice Trotter’s distinguished career as a lawyer and appellate justice then alternative dispute 

resolution provider stands out for his vast contributions in allowing countless injured persons to 

receive compensation, litigation peace and repose. This has enabled the injured to move on to 

healing and to enjoying the fruits of their recovery, has enabled the defendants to obtain repose and 

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No.: 19-3008 DM 

 RESPONSE OF FORMER TRUSTEE TO MOTION OF ABRAMS – 6 – 

REED SMITH LLP 

A limited liability partnership formed in the State of Delaware 

move on to other productive activities, and has enabled the courts to move on to address the myriad 

other disputes in which they also have a duty to dispense justice. As Justice Trotter looks back 

during his retirement on his remarkable career in the law, he, of course, is not happy to have Mr. 

Abrams’ smear campaign tarnish his reputation and legacy. But more than his interest in his own 

reputation and legacy, Justice Trotter is concerned that Mr. Abrams’ campaign may be upsetting to 

injured persons who already have endured the traumatic experience of catastrophic fire loss, and 

may deprive them of the peace, repose and healing that a settlement can help deliver. Justice Trotter 

is further concerned that Mr. Abrams’ campaign may tarnish the excellent work of so many people 

that have contributed to the settlement and its administration in this case, and in other cases. 

IV. CONCLUSION 

This Court ruled in its Discovery Order on the appropriate scope of discovery. Mr. Abrams 

then followed with another “motion” that was no more than a Rule 11 deficient smear campaign. 

This Court correctly recognized at the September 13, 2022 hearing that Mr. Abrams’ “motion” is not 

based on any evidence and has nothing to do with the issues relevant to this proceeding. The Court 

should deny Mr. Abrams’ latest “motion” in its entirety. 

DATED: October 3, 2022 

REED SMITH LLP

By: 

 Raymond A. Cardozo 

By: /s/ Christopher O. Rivas 

 Christopher O. Rivas 

Specially Appearing Attorneys for 

Honorable John K. Trotter (Ret.) 

Case: 19-30088 Doc# 13039 Filed: 10/03/22 Entered: 10/03/22 16:23:39 Page 6

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EXHIBIT 1 

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.lu,;1ic..~ ,John R. Trott:er•~ .Rcspon~\' 10 Rece1u L oil Angele~ Time. Artie.le~ 

Recenl tu:ti~le, in lhi! T.os Atl!l.:lCs limes L"TTlidit.cd we role of l'rivoto: Ju<lging (Specltil Mu!itcrs, 

Aibitrrttm;; and Medililurs) und ~uggcstcd It w11s ,.mnebow rclaEcd 10 disgraced lawyer To111 

Cltnmfi m1soppmprlation orfunck I wnli one 1;1l"thi! .lUUl;(!:-> refercncel:i in th~ nrtide lilld \\hilt: I 

canan1 !-J'l!J1k l'lll bdmlf ur ulheri;, I would like lo Jm>vidc im1)11rt(illt fuc.~ 011 the cases 1n "d1lch I 

was mvolvcd 1n orde1 lo sel lhe record ~mlighl urul clcru:I) explnln the rnle of n Special M:-c<ter. 

• hi 200S I •,vu~ uppoinl<!<l Spcdi.J Mitsre-r on o case involving th.; drug- l{ezulin ••with 

t:1vei:sip.h1 of all ~-peel~ oft he sotlkrnait prc111e!<.~ :md ri:vJew Of Lht: ii 1Joealim1 proce~~." A1 

thi: !;,um: tlme 11ntl in lhc same ;;irdei- lln: Jrwgi:' nlso appointed a Vlcc l're.sJJenl ,if the 

Uank ·'w rmplemcnt die discrfbuho11 uJ :tbc -serrJemen1 fonds us directed hy 11\c Spedal 

Master,'' n1e clear putposc of the twn ttJ)pninmtcats ''-'Ill> that I rc~'°lll'e the dmm, un<l the 

l•ank pay them, The 11r11ele tiiiled to includ.: th.1~ lmportmll fuct nnd 1\/Tc\ngJy a!:S~ti!J. U1a1 

l hod rt'$pt>nt,ihifilcy for Lhc df?tritrutfon of l'LtnJ.I,; 11w:n I in foci hull no ncccss 111 lhl.' bank 

llCCOUlll, 

• The· article also mcorrectl) lllaled that I ,VffS nnfd for 1hc Rezulln work when in fuel Lhe 

payment. weal l11 J.l>.MS It urnined to RU) 1hw those ~crv1ce~ lu~ll!d two \'ear11, im•,,lved 

the evaluaUoll of V\'cl' 4.000 daims and the npp0rtinnmc,n1 i;,f $66 million doll11rs in 

Which JAMS SU1frand fudlity we-re l.l!ll:J fo1' the many hciu:ings- over that 1w,1-:,,car petio<l. 

• .Beyond rni'llllke11ly ,rul!Qcst~ lhlil the dlstrlbtttion 1Jf mou~y was under Lhc llllSpic<:'S or 

cO!llrl)I of the Sp.:ci:1l Mesler. tile ;utick al~o l'aikd lL) ~aprur;: nrrivet,utl 1~peeL~ of Lori 

i,1ctUl!ffleiml 

o thut un ''ullocatlon'' chlier in lhe limn of a Ju[) Award or Selllc:n1<;111 01 

dmc:nnfn~tion of \'ulue b) a Scctlemeni Mni.ter is II gross sum paid lo lh~ plalntiff 

ut!ornq ·and deposited mlo theci:r rrusr (teC-OUn1: -:ind 

o 'I frat 1ho: !Ulorn..:y then deJui;:1, his/111.:r ft: . .:£. euse ~pecilic c11sts, and 111 mos! 

pe[!,oual lnjU!) cum; lien oblig1,1rions. lh11I net pt)y1hent ls the "distribution''. 

IL uppeurs all llf Mr. Olrnrdi's all~gd mi~c.:mduc1 occurred nHer money h:id·he,:11 plllcecl in ltl.<, 

1.rusl ;LCc:ounJ. Ncitber t1ll:! TTial ,tuilg,• ,,or Settle-men1 Mn.ster W[.!J'e int~mJeLI lO ~ UJQlllturs n1·a11 

fi11orney 's rru~i 11.iwunt. It should l,e noted tllul in a rcccnl plune enLsh ease (d:un was nol trkd hy 

u. l'rivau'. Judge. bu1 by c Federal .tuclg.i) <llkgati,in~ :ig:lim:t Mr, Girardi ;,Vl!rr.: lhiil 11:i:'k.r 1he 

11<:rfl.ement fUtJdis wc.n: Ll..:p~1s1te:d ,n ht~ trui.t ,1c0u111t1, h_. illilpprnprlutdy used them for hiu own 

purpese~, 

M) cridcisrn nt' the LA fimcs shauld n(ll in M}' way be taken lb supp1irt fm Mr. Girard.i's 

rcpoth:11 uctiotlli. 1 am terribly liltdtlen~d hy his ttll~ed cm1i.luet w1J. the :,tain It lt!iivcs on otu· 

profession: 13ut it is critiCl!I thltl one mao's ilk:g;tl ncb nnl wu.ish ch,: re11uta1lu11 of Aliernatrw 

Olspul" Rosululluu \,h.i1J1 pruvlc~" g1.-aJ Set,i\.-c 111 tl;c Cuu,ts. tcg11I co1J11J1uruty rulJ the public: 

l he peuph.: who wurk ltt 1\lrcrmnlv~ Pi~pu!e Resul1.1tion 11$ Sptldal IVl:iStllr!>, Arhr1r\1,1cir, w,d 

Medialt111'1 lll'l' .:.ss.cmial in 1vd11y-· ~ lei,'111 ,.,orltl rutd !hey dlJ not deserve the d.:t!Slull shown h:,, Lh.-

Los Ao.~::les Tunes ,rus{tlformcd anicle~. 

Jusfice J ohn K. T1-011er (Rd,) 

fusticu John K. rroncr is ;1 fo1rner Pre$i<lln!;Jn.~1icc 1.1fthe fourth Di~trlct Couri .;if Ap1~I, a pas~ 

presiue~I pf the Orl!O!;c C,iumy Bar As.~m:hniun, pu~l preJdcnl ul ihe Americtm Buurd of l rial 

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EXHIBIT 2 

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March 29, 2022 

Dear Members of the Trust Oversight Committee,

It has been my honor and privilege to serve as the Trustee of the PG&E Fire Victim Trust since its 

formation on July 1, 2020. Like you, I have devoted the past two years addressing the financial 

hardship of tens of thousands of deserving fire victims. While together we have made great 

progress in compensating them for their tragic losses, there is still more to be done. Unfortunately, 

I will not be part of that effort. I have decided after careful consideration that the time has come 

for me to hand over the reins to a successor Trustee. I will be resigning as Trustee, effective as of 

June 30, 2022. I thank you for your generous contribution of time, effort and most of all, your 

wise counsel. 

I know that each of you will continue the good work of bringing relief to the fire victims. I also 

know you will provide the same guidance and support for my successor Trustee to the best of your 

ability. During this next 90 days, I will continue my full commitment to the Trust and to the fire 

victims. I will be proactive to ensure a smooth transition. 

I wish you all the best in your continuing roles. 

With appreciation,

Justice John K. Trotter (Ret.) 

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