By Yiming Fu, Report for America corps member
Money will go directly to Lahaina fire survivors instead of to insurance companies.
The $4 billion settlement compensating Lahaina fire survivors cleared one of its biggest hurdles Monday as the Hawaii Supreme Court ruled insurance companies cannot get a part of the money.
Lawyer Jesse Creed argued in court Friday the money needs to go to survivors, who lost more than their home but their playgrounds, community centers, neighbors, and the fabric of where they lived.
“They need every penny to restitch their community back together.”
The August 2023 Lahaina fires were ignited by a downed electricity pole on unkempt grasses on Kamehameha Schools property. It was the deadliest wildfire in the United States in over a century, killing more than 100 people, displacing thousands and impacting 3,000 structures.
Announced last August, the $4 billion Lahaina fire survivor settlement hopes to compensate survivors by mid-2025, resolving about 450 lawsuits filed by individuals, businesses and insurance companies.
Seven groups taking the blame for the fires will make the payments. The State of Hawaii will pay about $800 million, Kamehameha Schools will pay $872.54 million and Hawaiian Electric will pay $1.99 billion.
Insurance companies refused to enter into the settlement, saying they should be able to make claims against the State of Hawaii, Hawaiian Electric and Kamehameha Schools to recoup what was paid out to fire victims. Insurance companies have paid more than $2.3 billion to those affected by the Lahaina fires and expect to pay $1 billion more.
This issue is resolved now — Hawaii Supreme Court justices ruled unanimously that the settlement is for victims. Insurance companies can still seek reimbursement, but they’ll have to go before a judge to prove a policyholder received more money from the settlement than their claim.
The next step in the settlement is figuring out the administrative claims process — how much money people will get and how they will be notified.
Governor Josh Green and Attorney General Anne Lopez said they welcome the court’s decision in a Monday afternoon press release.
“We reached this historic settlement for the wildfire survivors on Maui through a collaborative effort to do what is right (pono), for our people, consistent with our values,” Green said. “Today’s decision will help our people heal much sooner, as we continue to rebuild and recover.”
AsAmNews is published by the non-profit, Asian American Media Inc.
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