A global settlement of $4 bn has been tentatively reached to resolve all lawsuits stemming from the Maui wildfires. However, insurers cannot independently pursue subrogation claims against the settling parties, as per a ruling from Hawaii’s 2nd Circuit Court, according to AM Best report.
Seven defendants and plaintiffs’ attorneys announced the settlement, which resolves around 450 lawsuits filed in state and federal courts related to the Lahaina and Upcountry Maui wildfires.
According to a statement from Governor Josh Green’s office, the August 2023 wildfires devastated much of Lahaina and marked the most destructive fire in Hawaii’s history.
Judge Peter T. Cahill issued an order limiting subrogation, citing the decision in “Yukumoto v. Tawarahara.” The ruling concluded that insurers do not possess an unrestricted right to subrogation and must adhere to state law on reimbursement rights.
Governor Green urged mainland subrogation attorneys to respect Judge Cahill’s decision, emphasizing that no one should impede the community’s full recovery. He called for collaboration between states, insurers, and attorneys to develop better ways of resolving disputes and addressing risks.
We humbly ask the mainland subrogation attorneys to accept what Judge Cahill has made clear, which is no one should stand in the way of our people’s full recovery
Josh Green, Governor of Hawaii
“The world has changed as a result of climate forces, and we need to work together — states, insurers, attorneys — to create better ways for people to settle differences so they can address risks and recover when necessary,” Green said.
The settlement includes payments from the state of Hawaii, the County of Maui, Hawaiian Electric Industries Inc., West Maui Land Co., Spectrum/Charter Communications, Hawaiian Telcom, and Kamehameha Schools. Hawaiian Electric disclosed it would contribute $1.99 bn toward the total settlement.
Hawaiian Electric President and CEO Shelee Kimura stated that the settlement would allow all parties to move forward without the additional challenges of litigation.
She emphasized that the collaborative effort in resolving this complex case highlights Hawaii’s unity in times of crisis.
“Achieving this resolution will allow all parties to move forward without the added challenges and divisiveness of the litigation process. It will allow all of us to work together more cohesively and effectively to support the people of Lahaina and Maui to create the future they want to see emerge from this tragedy,” Shelee Kimura, president and CEO of Hawaiian Electric said.
“For the many affected parties to work with such commitment and focus to reach resolution in a uniquely complex case is a powerful demonstration of how Hawaii comes together in times of crisis.”
In July, the Hawaii Insurance Division reported that Maui wildfire claim payments had exceeded $2.34 bn.
In early August 2023, a series of wildfires broke out in the U.S. state of Hawaii, predominantly on the island of Maui.
The wind-driven fires prompted evacuations and caused widespread damage, killing at least 102 people and leaving two persons missing in the town of Lahaina on Maui’s northwest coast. The proliferation of the wildfires was attributed to dry, gusty conditions created by a strong high-pressure area north of Hawaii and Hurricane Dora to the south.
An emergency declaration was signed on August 8, authorizing several actions, including activation of the Hawaii National Guard, appropriate actions by the director of the Hawaii Emergency Management Agency and the Administrator of Emergency Management, and the expenditure of state general revenue funds for relief of conditions created by the fires.
By August 9, the state government of Hawaii issued a state of emergency for the entirety of the state. On August 10, U.S. President Joe Biden issued a federal major disaster declaration.
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