$4.03 billion Maui wildfire settlement moves closer to finalization

HONOLULU (KHON2) — A settlement worth over $4 billion for victims of the Maui wildfire is one step closer to being finalized, according to attorneys that represent victims’ families after a court hearing on Tuesday, Aug. 13.

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Gov. Josh Green announced the $4.03 settlement on Monday, Aug. 5 but the deal did not take over $2 billion that has already been paid by insurance companies into account. Attorneys who represent providers said they deserve their share.

“The relief that they are seeking is to say this is all the money that’s ever going to be and they’re entitled to all of it and it’s insufficient to pay everybody as the equitable basis to have, to make that finding,” attorney Adam Romney said.

Attorneys for victims’ families argued that insurance companies can not claim rights to the entire $4 billion and will have to get reimbursed on a case-by-case basis.

“And attempt to prove that victims have been fully compensated for all of their damages before an insurance company can get a dollar back,” attorney Aaron Creps said.

Creps spoke about a hypothetical example where a victim received $5,000 from the settlement and $1,000 from insurance.

“Then they would have to pay that $1,000 back, less a reduction for attorney’s fees or other costs that they had incurred to pursue their claim,” Creps said.

Judge Peter Cahill said insurance companies are not trying to stick their hands in the pockets of these that they have helped and added that being $2.3 billion in the red is not feasible.

“They’re just saying, ‘Well, we want to continue on!’ But, the continuing on means that they’re, in short, they are tied to the hip,” Cahill said. “Like it or not, you are, on liability issues, can not proceed with the settlement.”

Cahill ruled in favor of the victims and added that equitably doling out billions of dollars to thousands of families and reimbursing several insurance companies will be a much bigger challenge.

“I have to tell you, a settlement to get where we’re at now may be an easier task than what remains to be done,” Cahill said.

Attorneys for the victims expected an immediate appeal, at which point the case will go to the Hawaii Supreme Court.