A tentative $4.04 billion global settlement has been reached to resolve all lawsuits arising from claims related to the Maui wildfires, according to an order from Hawaii’s 2nd Circuit Court on Aug. 19.
However, insurers involved in the settlement will be prohibited from independently pursuing subrogation claims against the settling third parties, according to a report from AM Best.
Seven defendants, along with plaintiffs’ attorneys, announced the settlement, which aims to resolve approximately 450 lawsuits filed in state and federal courts following the Lahaina and Upcountry Maui wildfires.
The fires, which occurred in August 2023, devastated the town of Lahaina and were the most destructive in Hawaii's history, as noted by Gov. Josh Green's office.
Judge Peter T Cahill, in his order limiting subrogation rights, referenced the decision in the case “Yukumoto v. Tawarahara,” which established that insurers do not have an unrestricted right to subrogation but are instead limited to reimbursement rights defined by state law.
Green urged mainland subrogation attorneys to respect Cahill's decision, emphasizing the importance of not hindering the recovery process for the people affected by the wildfires.
He noted that the changing climate necessitates collaboration among states, insurers, and attorneys to develop better methods for resolving disputes and facilitating recovery.
The defendants contributing to the settlement include the state of Hawaii, the County of Maui, Hawaiian Electric Industries Inc, West Maui Land Co, Spectrum/Charter Communications, Hawaiian Telcom Inc., and Kamehameha Schools, as reported by the governor’s office. Hawaiian Electric disclosed that it will contribute $1.99 billion to the total settlement.
Shelee Kimura, president and CEO of Hawaiian Electric, stated that the resolution would allow all parties to avoid the challenges and divisiveness of litigation, enabling them to work together more effectively in supporting the recovery of Lahaina and Maui.
The settlement also provides Hawaiian Electric with greater financial certainty as it seeks to restore its stability.
What are your thoughts on this story? Please feel free to share your comments below.
