Maui judge bars insurers from going after fire victims after settlement reached

14 August 2024, 03:04

Hawaii Wildfire Settlement
Hawaii Wildfire Settlement. Picture: PA

A multi-billion-dollar wildfire settlement is one step closer to being finalised.

A Maui judge’s ruling on Tuesday resolves a critical roadblock to finalising a 4 billion dollar (£3.1 billion) wildfire settlement.

Insurance companies who have paid out more than 2 billion dollars (£1.5 billion) in claims can seek reimbursement only from the settlement amount defendants fire victims blame for causing the deadly tragedy have agreed to pay.

Lawyers representing the victims in hundreds of lawsuits over the deaths and destruction caused by the fires asked the judge to bar insurers from bringing independent legal action to recoup the money paid to policyholders.

Preventing insurers from going after the defendants is a key settlement term.

Hawaii Wildfire Anniversary
Waiola Church and nearby Lahaina Hongwanji Mission are engulfed in flames. (Matthew Thayer/AP)

The settlement was reached earlier this month, days before the first anniversary of the fires, amid fears that Hawaiian Electric, the power company that some blame for sparking the blaze, could be on the brink of bankruptcy.

Other defendants include Maui County and large landowners.

The federal Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating the August 2023, fires that killed 102 people, destroyed the historic downtown area of Lahaina, burned thousands of homes and displaced 12,000 people.

Lawyers were worried allowing insurers to pursue reimbursement separately would be a deal-breaker, drain what is available to pay fire victims, and lead to prolonged litigation.

A group of more than 160 property and casualty insurers that have paid more than 2.34 billion dollars (£1.8 billion) to people and businesses devastated by the fires remained as holdouts to the settlement.

Insurer lawyers argued in court filings that what they called the rush to push through a settlement deprives the insurers of their due process.

The insurance industry has been unfairly demonised while those responsible for the fires won’t be held accountable, insurer lawyer Vincent Raboteau told the judge.

Hawaii Wildfire Anniversary Banyan Tree
A man reacts as he sits on the Lahaina historic banyan tree damaged by the wildfire. (Rick Bowmer/PA)

“And we’re not arguing to be first in line for anything,” he said.

“It’s always been our position that individual plaintiffs should get the lion’s share.”

After the hearing, Mr Raboteau declined to comment on Judge Peter Cahill’s ruling and would not say whether they plan to ask the Hawaii Supreme Court to review it.

Jake Lowenthal, a lawyer selected as one of four liaisons for the coordination of the plaintiffs’ lawsuits, said they are heartened by Judge Cahill’s ruling.

“This is going to be a critical part in reaching a final resolution of everyone’s claims as well as resolving the insurance companies’ potential rights of reimbursement,” he said.

By Press Association

Latest World News

See more Latest World News

Lord Sugar labels Trump tariffs 'a disaster' as Apprentice star teases potential US Presidential meeting

Lord Sugar labels Trump tariffs 'a disaster' - as Apprentice star teases potential US Presidential meeting

Buildings that were destroyed during the Israeli ground and air operations in Gaza

Israel expands ground attack on Gaza to seize 'large areas' - despite pleas from hostage families

Police said two people died on Palliser Road, Roseneath.

British couple found dead at home in New Zealand - just months after moving to 'begin new chapter'

Virginia Giuffre warned it was a "very bad situation" after she claimed a school bus ploughed into her car

Virginia Giuffre was charged with breaching restraining order days before crash that 'left her with days to live'

Putin continues to reject Trump's peace plan

'We won't accept Ukraine ceasefire while Zelenskyy remains in power,' Russia warns

Virginia Giuffre

Family of Prince Andrew accuser Virginia Giuffre hit out at Australian cops over doubts she has 'days to live'

Luigi Mangione is facing the death penalty for the shooting of United healthcare CEO Brian Thompson

US prosecutors are seeking the death penalty for Luigi Mangione in healthcare boss murder case

Emergency services at the scene after an explosion at a building thought to be a gas leak, in Via Pio Foà and Via Vitellia, in Rome, Sunday, March 23, 2025.

Scottish tourist dies after sustaining severe burns in Rome gas explosion that destroyed three-storey hotel

Five Israelis have been cleared after the court ruled the British woman's testimony was not credible

Five tourists accused of gang raping British woman in Ayia Napa hotel cleared after charges dropped

An areal view of the volcanic eruption near the town of Grindavik, on the Reykjanes Peninsula, Iceland

Volcanic eruption forces evacuations in Iceland

Jeffrey Epstein sex-trafficking victim who claimed Prince Andrew sexually abused her given 'four days to live' by doctors

Jeffrey Epstein victim and Prince Andrew accuser issues fresh statement after being given 'four days to live'

President of the far-right Rassemblement National (RN) parliamentary group Marine Le Pen

French far-right leader Marine Le Pen vows to fight election ban after embezzlement conviction

President Donald Trump and Defense Secretary Pete Hegseth

White House says 'Signal chat case is closed' insisting issue has been 'dealt with'

A Taliban security personnel stands guard.

Taliban ask Russia to lift ban on terrorist organisation

Britain's Prime Minister Keir Starmer (L) shakes hands with Finland's President Alexander Stubb

'The UK is back': Finnish president praises Starmer's leadership announcing two nations are 'tied hip-to-hip on Nato'

Jeffrey Epstein sex-trafficking victim who claimed Prince Andrew sexually abused her given 'four days to live' by doctors

Jeffrey Epstein sex-trafficking victim who claimed Prince Andrew sexually abused her given 'four days to live'