Hawai’i Supreme Court hears legal dispute over $4B Maui wildfire settlement
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MAUI, Hawai’i (KITV) — Opposing attorneys representing Maui fire survivors and insurance companies pleaded their own cases in Hawai’i Supreme Court on Thursday morning over the $4 billion settlement for victims.
The hearing discussed whether insurers should take reimbursements from the settlement, or if the court should allow them to sue Hawaiian Electric, the state and other large landowners on their own.
If the court rules in favor of the latter, some argued the process would delay how quickly money would be given to fire survivors.
“They just want a bigger piece of the pie,” Jesse Creed, an attorney representing fire survivors, said.
“That’s what it comes down to. It’s money for them and the difference is any money that goes to them is less money that’s going to go back to this community.”
Lawyers for insurers mentioned feeling iced out of the process and not being given enough after dolling out $2.3 billion to residents and businesses. They expect to have to pay an additional $1 billion.
“It comes down to the fact that they participated, but from afar, it’s the plaintiffs attorneys that did all the work,” added Cynthia Wong, another attorney representing fire survivors.
Attorney Mark Grotefeld, who is serving as counsel for insurers, responded, “That’s quite misleading.”
The insurers’ lawyers asserted that they rolled out a thorough and timely investigation, and even determined how the fire was started through expert opinions, before they pursued legal action.
“Very misleading to suggest the insurers want to do anything harmful to their insurance. The insurers’ interests are to be able to pursue their own claims relative to the amounts they paid,” Grotefeld said.
As the legal process plays out, it may take a while for survivors to begin receiving money.
The supreme court’s ruling on the insurance companies alone could come in about two months.
“We know the law is correctly as we have stated it, so we feel very good about our chances here,” Grotefeld shared.
Wong and Creed also felt assured about their own arguments.
“I’m very confident. I’m very confident in our Hawai’i Supreme Court,” Wong said.
Creed echoed, “I’m confident not only based on the argument, but the law.”
Even after the supreme court decides, the losing side could seek review at the U.S. Supreme Court.
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