2 weeks Ago By USA TODAY
Hawaii's Supreme Court ruled Monday that insurance companies cannot file suit against those blamed for the devastating 2023 wildfire on Maui, clearing the way for a $4 billion dollar settlement for victims. The insurers asked to be a part of the settlement between thousands of victims and those being sued, including Hawaiian Electric Company and the state, saying that they should be reimbursed for paying out claims in the wake of the fire that killed over 100 people and destroyed thousands of homes. “We will have to pay more than the people who actually caused the damage and that is fundamentally inequitable," Adam Romney, an insurance industry lawyer, said during arguments − according to Maui Now .
The justices unanimously ruled that under state law insurers could only obtain settlement money by requesting they be reimbursed by those they insure. Reaction to the ruling Hawaii Gov. Josh Green praised the ruling.
"The settlement came exactly one year after the fire occurred, when most felt it could take five years or more to reach agreement," Green said. "Today’s decision will help our people heal much sooner, as we continue to rebuild and recover." In a statement to USA TODAY, law firms representing over 1,000 people impacted by the fires said that the Hawaii Legislature "decided this issue a long time ago and created a mechanism for settlement of insurers' claims for reimbursement.
" "But the mainland insurance companies didn’t want to follow that law," said the firms, the Frantz Law Group and Leavitt, Yamane and Soldner. "Although the people of Maui have suffered immensely, today some justice has prevailed." Lahaina wildfire one of the deadliest in US history The fire that started on Aug.
8, 2023, claimed at least 102 lives and destroyed more than 2,000 structures in the historic town of Lahaina, making it one of the deadliest wildfires in U.S. history.
The devastation was caused by a single fire that was believed to be extinguished but later reignited, according to a 2024 report from the County of Maui Department of Fire and Public Safety and U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives said "In sum, the origin and cause of the Lahaina fire is clear: the re-energization of broken power lines caused sparks that ignited unmaintained vegetation in the area," fire department Chief Brad Ventura said at a news conference when the report was released .
Hawaii Electric faced multiple lawsuits before the settlement, filed on behalf of hundreds of home and business owners who claimed the company failed to shut off power lines despite warnings that high winds might blow them down and spark wildfires. The company said it agreed to pay about half of a more than $4 billion legal settlement that would compensate victims. This article originally appeared on USA TODAY: Hawaii Supreme Court: Insurance companies can't join wildfire settlement.
