Hawaii Supreme Court hears arguments over Lahaina wildfire victims' global settlement
HONOLULU (KHON2) — The fate of the $4 billion 'Global Settlement' for Lahaina wildfire victims is now in the hands of the Hawaii Supreme Court. Whatever the court decides could have a big impact on everyone in Hawaii.
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The $4.037 billion Global Settlement was announced in August. On Thursday, Feb, 6, the Hawaii Supreme Court finally had the opportunity to question lawyers about the legality of it.
'It seems like you're crashing directly into State Farm,' said Justice Todd Eddins.
Deal reached: How will the $4B Lahaina Global Settlement be split for fire victims?
'If 66-10 does not apply, there's not a tort suit filed, then other subrogation rights would apply, is that correct,' asked Justice Lisa Ginoza.
'What's wrong with this proceeding that it's somehow prejudicial,' asked Chief Justice Mark Recktenwald.
At question – are insurance companies allowed to collect money from those at fault for the fires? They said the Global Settlement blocks them from doing that.
'They've been involved every step of the way, they just want a bigger piece of the pie,' said Jesse Creed, attorney for fire victims. 'That's what it comes down to. It's money for them.'
'We are not against insured or other fire victims that weren't even insured by somebody,' said Mark Grotefeld, attorney for insurance companies. 'We simply wanna be able to pursue the recovery against those that started this fire. And we're entitled do that under the law.'
'There's no rights that are being taken away from anyone,' said Cynthia Wong, attorney for victims. 'The Hawaii Supreme Court knows that and they're gonna come up with the process that allows the victims to move forward with this settlement.'
After close to two hours of arguments, attorneys for the victims and insurance companies felt confident about their chances and focused on the big-picture ramifications of this ruling.
When can wildfire victims get money to start rebuilding? And what happens to Hawaii's home insurance market if the companies can't recoup their losses?
'You remove that safety net for insureds, that becomes a very difficult situation for the citizens of Hawaii,' said Grotefeld. 'And we are working very hard to prevent that from happening. We want that safety net to be maintained and that's really why we're here before this court.''We're dedicated to making sure we get money in the hands of the people of Maui as quickly as we can,' said Creed.
Chief Justice Recktenwald acknowledged that the court understands the urgency needed for a decision in this case. Officially, they can take as long as they want. Attorneys hope a ruling is made within a couple of months.
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