Maui Wildfire Settlement Nears Resolution as Lawsuit Dismissal is Sought
A significant step toward providing relief for victims of the devastating Maui wildfires from August 2023 is underway, as parties involved in the case have agreed to dismiss a federal class action lawsuit. This move could pave the way for a proposed $4.04 billion global settlement to be finalized by early 2025, pending the approval of U.S. District Court Judge Jill Otake.
The settlement, which marks a collaborative effort among Hawaiian Electric Industries, Kamehameha Schools, and other entities, aims to compensate the fire victims, who faced catastrophic losses due to the wildfires that claimed 102 lives and devastated Lahaina. However, the dismissal of the federal case must be solidified, and as of Wednesday, Judge Otake noted that not all parties had signed the dismissal document, requiring a technical fix.
Currently, the global insurance industry is pushing to keep the federal case active, believing it offers a fairer venue compared to Hawaii’s state court, where they have faced setbacks. Insurers have already paid more than $2.3 billion to victims but seek the right to sue for recoupments against parties deemed liable for the disaster, complicating the settlement process.
The global settlement entails contributions from various entities, including $1.99 billion from Hawaiian Electric and $872.5 million from Kamehameha Schools. However, the agreement hinges on insurers relinquishing their subrogation claims, which they are reluctant to do, raising concerns about the settlement’s finality.
With the Hawaii Supreme Court expected to make a decision by early 2025, the future for the victims remains uncertain. The situation calls for clarity on how to compensate victims opting out of the settlement and the allocation of legal fees, which could significantly deplete the settlement amount. The outcome could either lead to resolution or thrust victims back into uncertainty.
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