HONOLULU (AP) — A Maui judge’s ruling Tuesday resolves a crucial hurdle in finalizing a $4 billion wildfire. colonyInsurance companies that have paid out more than $2 billion in claims can only seek repayment from the settlement amount that fire victims’ defendants who blame them for causing the deadly tragedy agreed to pay.
Lawyers representing plaintiffs in hundreds of lawsuits over deaths and damage caused by the fires have asked a judge to bar insurance companies from pursuing independent legal action to recover money paid to policyholders. Preventing insurance companies from pursuing defendants is a key settlement provision.
The settlement was reached earlier this month, days before the agreement. 1st Anniversary from the fires, amid concerns that Hawaiian Electric Power Co. may do so. some blame For starting the fire, he could be on the verge of bankruptcy. Other culprits include Maui County and major landowners.
Federal Bureau of Alcohol, Tobacco, Firearms and Explosives Investigation August. On October 8, 2023, wildfires killed 102 people, destroyed Lahaina’s historic downtown area, burned thousands of homes and displaced 12,000 people.
Plaintiffs’ attorneys were concerned that allowing the insurers to pursue reimbursement separately would be a deal breaker, draining what was available to pay fire victims and leading to protracted litigation.
A group of more than 160 property and casualty insurers, which have so far paid out more than $2.34 billion to people and businesses destroyed by the fires, has remained steadfast in the settlement.
Lawyers for the insurance companies argued in court filings that what they called the rush to move forward with the settlement deprived the insurers of due process.
Vincent Raboteau, a lawyer representing the insurance companies, told the judge that the insurance industry was being unfairly demonized, while those responsible for the fires would not be held accountable.
“We don’t argue that we should be first in anything,” he said. “Our position has always been that individual plaintiffs should get the lion’s share.”
After the hearing, Raboteau declined to comment on Cahill’s ruling and did not say whether they planned to seek a review of Cahill’s ruling by the Hawaii Supreme Court.
Jake Lowenthal, the attorney who was named one of four liaisons to coordinate the plaintiffs’ lawsuits, said they were pleased with Cahill’s ruling.
“This will be a critical part of reaching a final resolution to everyone’s claims as well as resolving potential payment rights for insurance companies,” he said.
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