Hawaii Supreme Court rules against insurers, clears $4B Maui wildfire settlement

The Hawai’i Supreme Court ruled unanimously that insurance companies cannot pursue separate legal actions against those responsible for the devastating 2023 Maui wildfires, thereby allowing a $4 billion settlement for fire survivors to proceed. This decision means that money will go directly to the victims, many of whom lost their homes and communities in the catastrophic fires. The ruling addresses a significant legal challenge posed by insurers who sought to reclaim payouts from Hawaiian Electric and other entities, but the court found their right to subrogation limited by state law. The settlement, which aims to compensate survivors by mid-2025, involves contributions from various parties, including Hawaiian Electric, which will pay nearly $2 billion. While insurers expressed disappointment over the ruling, legal representatives for the victims view it as a critical step forward in ensuring timely compensation. The next phase involves determining the administrative process for distributing the funds to those affected.