Hawaii court rules against insurance companies in Maui wildfire, allowing $4B settlement to proceed

HONOLULU — Hawaii’s Supreme Court ruled Monday that insurance companies can’t bring their own legal actions against those blamed for Maui’s catastrophic 2023 wildfire, the deadliest in the U.S. in more than a century. The ruling allows a $4 billion settlement under threat by insurance issues to move forward.

Other steps remain in finalizing the deal between thousands of people who lodged lawsuits and various defendants, including Hawaiian Electric Company.

A settlement was announced last summer, but insurance companies held out, insisting that they should have the right to go after the defendants separately to recoup money paid out to policyholders.

Monday’s ruling resolves a key roadblock to finalizing the deal and sends the case back to a Maui judge to determine next steps.

A representative for the insurance companies said he would get back to the The Associated Press to comment on the ruling and whether they will ask for review at the U.S. Supreme Court.

A key question that was before Hawaii Supreme Court was whether state laws controlling health care insurance reimbursement also apply to casualty and property insurance in limiting companies’ ability to pursue independent legal action against those held liable. The justices answered yes.

Gerald Singleton, one of the attorneys representing the plaintiffs, said they’re still trying to make sense of the ruling but are pleased with it. “Now the settlement can take the next step forward,” he said.