Hawaii’s $4 Billion Wildfire Settlement — It’s Up in the Air

To date, insurers have paid out over $2 billion to people with losses in the devastating wildfire that hit Maui a little over a year ago. A month ago a $4 billion settlement was negotiated with Hawaiian Electric.

The insurance companies now want to get some of the $2 billion they’ve paid out to victims since much of the $4 billion will be going to them. The lawyers that set up the settlement say the insurers could end up undoing the agreement and putting many of the victims back at square one.

Settlement Judge Peter Cahill originally ruled that insurers can only go after the amount they have paid so far and cannot bring their own suits against the victims. Insurers balked at that so the judge sent the case to the Hawaii Supreme Court to review.

It will make the final decision.

One of the attorneys for the victims is Jake Lowenthal. He said the decision to send the case to the Supreme Court was expected.

“If they rule that the insurance companies do have an independent right to pursue their own suits against the same defendants then the settlement agreement is null and void, basically," Lowenthal said.

Vincent Raboteau is one of the attorneys representing the insurers. He, too, said the move by Judge Cahill was expected.

“We look forward to making our case before the Hawaii Supreme Court about the importance of maintaining insurers’ independent lawful rights to subrogation, which is the industry standard nationally and protects the interests of all policyholders,” Raboteau said.

Source link: Associated Press — https://bit.ly/405J3Kr