Hawaii Court Allows $4B Settlement for Maui Wildfire

The Hawaii Supreme Court has ruled that insurance companies cannot independently sue those blamed for the 2023 Maui wildfire, allowing a $4 billion settlement for victims to proceed. This decision resolves a major roadblock, clearing the way for a settlement involving Hawaiian Electric, the State of Hawaii, and other parties, after insurers sought reimbursement for payouts made. Hawaiian Electric is planning to establish a billion-dollar fund to cover future wildfire damages, financed by a monthly $4 surcharge on customers, similar to a fund in California. The ruling aligns with state law, which restricts insurers to seeking reimbursement from their own insureds rather than pursuing tortfeasors directly. The destruction from the Maui wildfire, one of the deadliest in U.S. history, resulted in extensive damage and significant loss of life, prompting multiple lawsuits. The court's decision was seen as a step towards quicker recovery and rebuilding efforts for the affected communities.