Current:Home > MarketsMaui judge’s ruling bars insurers from going after defendants who agreed to $4B wildfire settlement -Stellar Wealth Sphere
Maui judge’s ruling bars insurers from going after defendants who agreed to $4B wildfire settlement
View
Date:2025-04-15 22:24:08
HONOLULU (AP) — A Maui judge’s ruling Tuesday resolves a critical roadblock to finalizing a $4 billion wildfire settlement: Insurance companies who have paid out more than $2 billion in claims can seek reimbursement only from the settlement amount defendants fire victims blame for causing the deadly tragedy have agreed to pay.
Lawyers representing plaintiffs in hundreds of lawsuits over the deaths and destruction caused by the fires asked the judge to bar insurers from bringing independent legal action to recoup the money paid to policyholders. Preventing insurers from going after the defendants is a key settlement term.
The settlement was reached earlier this month, days before the one-year anniversary of the the fires, amid fears that Hawaiian Electric, the power company that some blame for sparking the blaze, could be on the brink of bankruptcy. Other defendants include Maui County and large landowners.
The federal Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating the Aug. 8, 2023, fires that killed 102 people, destroyed the historic downtown area of Lahaina, burned thousands of homes and displaced 12,000 people.
Plaintiff lawyers were worried allowing insurers to pursue reimbursement separately would be a deal-breaker, drain what is available to pay fire victims and lead to prolonged litigation.
A group of more than 160 property and casualty insurers that have so far paid more than $2.34 billion to people and businesses devastated by the fires remained as holdouts to the settlement.
Insurer lawyers argued in court filings that what they called the rush to push through a settlement deprives the insurers of their due process.
The insurance industry has been unfairly demonized while those responsible for the fires won’t be held accountable, Vincent Raboteau, an attorney representing the insurers, told the judge.
“And we’re not arguing to be first in line for anything,” he said. “It’s always been our position that individual plaintiffs should get the lion’s share.”
After the hearing, Raboteau declined to comment on Cahill’s ruling and wouldn’t say whether they plan to seek review of Cahill’s ruling by the Hawaii Supreme Court.
Jake Lowenthal, an attorney selected as one of four liaisons for the coordination of the plaintiffs’ lawsuits, said they are heartened by Cahill’s ruling.
“This is going to be a critical part in reaching a final resolution of everyone’s claims as well as resolving the insurance companies’ potential rights of reimbursement,” he said.
veryGood! (69582)
Related
- Finally, good retirement news! Southwest pilots' plan is a bright spot, experts say
- New reality show 'The Summit' premieres: What climber was the first to be eliminated?
- Arkansas sues YouTube over claims that the site is fueling a mental health crisis
- North Carolina town bands together after Helene wreaked havoc: 'That's what we do'
- A South Texas lawmaker’s 15
- Angelina Jolie Drops Legal Case Over 2016 Brad Pitt Plane Incident
- Oregon DMV waited weeks to tell elections officials about voter registration error
- As communities grapple with needle waste, advocates say limiting syringe programs is not the answer
- Elon Musk's skyrocketing net worth: He's the first person with over $400 billion
- 32 things we learned in NFL Week 4: One NFC team separating from the pack?
Ranking
- EU countries double down on a halt to Syrian asylum claims but will not yet send people back
- Wisconsin prisons agree to help hearing-impaired inmates under settlement
- Did 'SNL' mock Chappell Roan for harassment concerns? Controversial sketch sparks debate
- Reaction to the death of Basketball Hall of Famer Dikembe Mutombo
- New Zealand official reverses visa refusal for US conservative influencer Candace Owens
- Cutting food waste would lower emissions, but so far only one state has done it
- Anna Delvey Claims Dancing With the Stars Was Exploitative and Predatory
- Did SMU football's band troll Florida State Seminoles with 'sad' War Chant?
Recommendation
Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Hi Hi!
Hall of Fame center Dikembe Mutombo dies of brain cancer at 58
Angelina Jolie Drops Legal Case Over 2016 Brad Pitt Plane Incident
Nobody Wants This Creator Erin Foster Reveals Heartwarming True Story That Inspired the Netflix Series
Tom Holland's New Venture Revealed
Reveal Old Navy’s Mystery Deals & Save 60% – Score $18 Jeans, $4 Tank Tops, $10 Leggings & More
Murder in a Small Town’s Rossif Sutherland and Kristin Kreuk Detail “Thrilling” New Series
Ariana Grande defends Ethan Slater, slams 'evil' tabloids for relationship coverage