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HONOLULU (HawaiiNewsNow) – In a remarkably quick ruling, the Hawaii Supreme Court has unanimously ruled that the $4 billion settlement of the Maui wildfire can not be blocked by insurance companies.
The ruling means that the Maui circuit court can begin the process of finalizing individual payments to survivors and families of those who died.
The Hawaii Supreme Court heard a $4 billion argument Thursday over the Maui wildfire lawsuits.
The court faced a decision that could kill the so-called “global” settlement between victims, Hawaii Electric, the state, Kamehameha Schools and other entities.
The unusual arguments pitted supporters of the settlement, including those responsible for the damage, against the insurance industry.
The key issue was whether insurance companies should have been included in the settlement for the $3 billion they say they are paying out in property damage claims.
Insurance industry attorney Adam Romney pointed out that the industry has already paid out more than the $1.9 billion Hawaiian Electric has committed to the settlement.
“We will have to pay more than the people who actually caused the damage and that is fundamentally inequitable,” he said. “Ultimately we didn’t start the fire. We’re the people who start paying moneys immediately when the claims start coming in.”
Before the settlement, the insurers filed their own lawsuit against many of the same defendants.
Gov. Josh Green welcomed the court’s unanimous decision.
“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.”
Green also said that he “will continue to work with all parties, including those who opposed the settlement, to expedite our critical recovery as a people and a state.”
Those directly impacted by the decision said they are relieved that the state high court moved so quickly.
Sanford Hill lost his unit at Hale Mahaolu Eono, a senior housing complex where many of his friends died. He has since relocated to Kauai.
The 73-year old feared the courts would hold up the settlement for years and he wouldn’t see any of it, “especially the kupuna, we don’t have a lot of time to wait.”
Construction is happening in Lahaina now and the timing of the deal could ease the financial stress for those who want to rebuild.
Karen Nagasako said they finally have permits now, “We knew we could replace our house but we can’t replace the memories of our town.”
The Nagasako family not only lost their home they also lost the Nagasako General Store, known for it’s okazuya.
Karen Nagasako says the settlement will help them rebuild the home, but they would not rebuild the store that has been serving musubis and other local favorites for more than a century.
“My son is gonna probably do a food truck to continue the legacy,” Karen said she and her husband are going to retire from the business.
Kiha Kaina lost his father, Joseph Lara who tried to flee the flames.
“I wish our father could be here with us, and I’ll take that any day,” but Kaina said the settlement will help families struggling to move forward and heal.
Frpom hawaiinewsnow.com
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