A Maui judge has cleared a significant hurdle in finalizing a $4 billion settlement over the deadly 2023 wildfires by ruling that insurers who have already paid out over $2 billion in claims can only seek reimbursement from the agreed settlement amount.
This decision, which prevents insurers from filing separate lawsuits against defendants like Hawaiian Electric and Maui County, is seen as vital to ensuring the settlement proceeds smoothly.
The settlement reached just before the one-year anniversary of the fires, aims to compensate victims and resolve claims without pushing key defendants into bankruptcy.
Lawyers for the plaintiffs argued that allowing insurers to seek additional compensation would deplete the funds available for fire victims and prolong the legal battle.
More than 160 property and casualty insurers, who have already paid out over $2.34 billion, had opposed the settlement, claiming it denied them due process and unfairly scapegoated the insurance business industry.
However, the judge’s ruling supports the plaintiffs’ position, reinforcing the settlement as a necessary step toward resolving all claims.
The 2023 wildfires, which killed 102 people and destroyed Lahaina’s historic downtown, remain under investigation by the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives.
With this ruling, the focus now shifts to finalizing the settlement and providing much-needed relief to those affected by the tragedy.
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