Maui’s forest fire agreement erases the obstacle of the State Supreme Court

Maui’s forest fire victims are closer to sharing an agreement of $ 4 billion, possibly before the second anniversary of the disaster in August, after a ruling of the Supreme Court of Hawaii on Monday.

The State Superior Court unanimously failed in answering three questions about Hawaii’s law that a judge of the Circuit Court used to underpin the agreement of agreement.

The most important question referred to whether the measure of the Peter Cahill circuit judge to prohibit insurance companies to pursue separate litigation destined for the liquidation payers to readjust the insurance companies for claims paid to those insured by The losses in the disaster, which killed 102 people and destroyed the majority of Lahaina and the property in Upcountry Maui on August 8, 2023.

The five judges of the Hawaii Supreme Court said in their order in writing that the exclusive remedy for an insurer of properties and victims to recover the claims paid for the damage caused by a part considered responsible for an illicit act, when there is a Agreement between the responsible and the insured. It is the recovery of the insured.

The three -page decision pleased the lawyers leading the liquidation effort on behalf of more than 17,000 victims, including the plaintiffs who filed more than 650 lawsuits in the circuit court in Maui.

“We are absolutely excited with this decision of the Supreme Court of Hawaii,” Cynthia Wong, a member of the Liaison Council of the Claimants Group, said in an email. “His ruling is a powerful statement of the law in Hawaii. They demonstrated an unwavering commitment to justice and equity. “

Wong said the pending agreement can now be considered for Cahill’s approval, and that there is hope that payments can begin to go to the victims before the second anniversary of the tragedy.

A coalition of 192 insurance companies involved in the case expressed their disappointment with Monday’s decision and said it establishes a worrying precedent that could disturb the Hawai insurance industry.

The coalition said in a statement that the subrogation, which is the ability to demand and recover the compensation of the parties responsible for the damages that lead to insurance claims payments, is vital for a healthy and stable insurance market.

“The subrogation allows insurers to hold the legally responsible and financially responsible parties responsible for their negligence when it results in damage to the property and losses of personal injury,” said the coalition. “Property insurers want those affected by this tragedy to receive the resources they need to help them recover. Preserving the rights of insurers to use subrogation is important for the insurance industry and, ultimately, it is beneficial for all policy holders and residents throughout the State. “

The lawyers who represent the insurers had refused to approve the agreement, saying that they were not significantly included in the process.

The insurers said they have paid around $ 2.3 billion in claims so far to fire the victims and expect to pay more than $ 1 billion more. Now, through a judicial process, insurers can seek the reimbursement of those insured by any amount of compensation that exceeds the value of what the insured lost.

If the agreement is approved by Cahill, a claims administrator will determine how much the victims receive. The lawyers representing the victims will also share the agreement.

The entities that have agreed to pay the agreement are Hawaiian Electric, The State, Kamehameha Schools, Spectrum Oceanic LLC and Hawaiian Telcom. They put on the side of the lawyers of the plaintiffs in the Supreme Court procedure.

Hawaiian Electric agreed to cover the largest piece of the agreement, with $ 1.99 billion paid for four years. It was discovered that an electric line of the damaged company in a strong wind is the cause of a fire that spread through Lahaina after reviving.

State schools and Kamehameha, landowners with vegetation that allowed the Lahaina fire to spread, agreed to pay $ 872.5 million each. Spectrum Oceanic LLC and Hawaiian Telcom, companies that share public services infrastructure with Hawaiian Electric, must collectively pay around $ 300 million.

Governor Josh Green, who previously criticized insurance companies for delaying the agreement, welcomed the decision issued on Monday.

“We arrive at this historical settlement for forest fire survivors in Maui through a collaboration effort to do the right thing (O) Pono, for our people, according to our values,” he said in a statement. “Today’s decision will help our people to heal much earlier, while we continue to rebuild and recover.”

The state attorney general Anne López, who represented the State in the case, added in a statement: “We are very happy that this obstacle to solving the claims of the victims of the fire has been authorized.”

Hawaian electrical officials said in a statement that Monday’s ruling means that Maui’s people are closer to receiving necessary resources to continue their recovery.

“The resolution of these questions reinforces the durability of the global agreement and will allow us to fulfill our commitment to thousands of people and our community as the collaboration work continues to rebuild,” said the company.

Hawaiian Electric, who has already raised about $ 1 billion for the agreement through the sales of the matrix company of new shares and the American Savings Bank, also said that the agreement helps to restore the financial stability it needs to mitigate the Fire risks through infrastructure improvements and other plans.

Sterling Wong, spokesman for Kamehameha schools, said the agreement will provide relief to families and help return stability and abundance to Lahaina.

“The Kamehameha schools continue to support healing and restoration in Lahaina, following the leaders of our Lahaina community and working in collaboration with many who are taking a step forward, including the state of Hawaii and the Maui County,” he said In an email. “The global agreement is an important part of these efforts.”

The liquidation payers have already contributed $ 175 million to a victim compensation fund led by the State that will be accredited for liquidation funds.

This fund ‘Ohana offered to pay the surviving relatives who lost the loved ones $ 1.5 million, and less of that amount to the people who suffered serious injuries if the winners have litigation.

Monday’s ruling followed the oral arguments presented on Thursday during an almost two -hour audience.

Kevin Morikone, a judge of the Circuit Court in Oahu, was a substitute for the associated judge of the Vladimir Devens Supreme Court. The other members of the Superior Court issued the ruling were the president of the Supreme Court Marktenwald and the associated judges Sabrina McKenna, Todd Eddins and Lisa Ginoza.

The proposed agreement, announced on August 2, was prepared by three independent mediators who suggested that the parties agree $ 4 billion as a maximum and practical sum for the liquidation payers based on facts and circumstances of the disaster.

On August 6, lawyers representing insurance companies presented an objection on the liquidation agreement, saying that they were not being treated correctly.

Cahill agreed that the Supreme Court answered three questions designed to determine if their decision regarding how insurance companies were about was allowed by Hawaii’s law.