Maui judge's ruling bars insurers from going after defendants who agreed to $4B wildfire settlement

Date:

Share post:


HONOLULU (AP) — A Maui judge’s ruling Tuesday resolves a critical roadblock to finalizing a $4 billion wildfire settlement: Insurance companies who have paid out more than $2 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 plaintiffs 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.

The settlement was reached earlier this month, days before the one-year anniversary of the 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 Aug. 8, 2023, fires that killed 102 people, destroyed the historic downtown area of Lahaina, burned thousands of homes and displaced 12,000 people.

Plaintiff 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 so far paid more than $2.34 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 demonized while those responsible for the fires won’t be held accountable, Vincent Raboteau, an attorney representing the insurers, told the judge.

“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, Raboteau declined to comment on Cahill’s ruling and wouldn’t say whether they plan to seek review of Cahill’s ruling by the Hawaii Supreme Court.

Jake Lowenthal, an attorney selected as one of four liaisons for the coordination of the plaintiffs’ lawsuits, said they are heartened by 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.



Source link

Alexandra Williams
Alexandra Williams
Alexandra Williams is a writer and editor. Angeles. She writes about politics, art, and culture for LinkDaddy News.

Recent posts

Related articles

5 arrested after detectives find young boy locked in cage inside house

Five people have been arrested after detectives found a young boy locked in a caged area inside...

Man accused of hitting unmarked police cruiser, causing hours-long standoff formally charged

A man accused of hitting an unmarked police cruiser and causing an hours-long standoff in Dayton has...

Scores of taxi drivers given licenses despite having convictions for violent offences

Scores of taxi drivers have been able to obtain licenses despite having convictions for violent offences, a...

US arrests Turk for allegedly trying to break Venezuela sanctions

WASHINGTON (Reuters) - U.S. authorities have arrested a Turkish man who they allege was trying to violate...

Rare November hurricane set to hit the US – here’s the projected path

A rare November hurricane is expected to make landfall in the southern US this weekend, according to...

Ominous Cloud Looms in Tornado-Warned Oklahoma County

An ominous-looking cloud was seen hovering in east-central Oklahoma on Monday, November 4, as weather officials issued...

US housing affordability, November's market seasonality: Wealth

In today's installment of Wealth, Brad Smith tackles the biggest personal finance topics ahead of Tuesday's presidential...

Dallas singer shot onstage while signing autographs after performance

A Dallas singer has been hospitalized after she was shot onstage following a performance Saturday with The...