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The Hawaii Supreme Court has ruled that insurance companies cannot file separate legal actions against those responsible for the 2023 Maui wildfire, clearing the path for a previously stalled $4 billion settlement. The inferno, which devastated the historic town of Lahaina, claimed over 100 lives and caused approximately $5.5 billion in damages, leading to numerous lawsuits against defendants, including Hawaiian Electric, which is widely blamed for sparking the fire.
According to Attorney Gerald Singleton, one of the plaintiffs' representatives, the ruling addresses concerns that allowing insurance companies to pursue independent claims could deplete funds designated for wildfire victims and prolong litigation. As stated by Hawaii Governor Josh Green, the settlement process aims to deliver timely financial relief, essential for recovery efforts.
Insurance firms, which have already paid out over $2.3 billion to affected individuals and businesses, expressed concerns regarding subrogation rights. However, the court concluded that while insurers can seek reimbursement, they must establish to the court that their policyholders have received excess payouts that warrant such claims.