The forest fires destroyed around 80% of the historic city of Lahaina, a cultural showcase and tourist pillar for the thriving Hawaiian tourism industry. 102 people were killed and thousands of property destroyed. The destruction came an estimated $ 5.5 billion in compensation.
A settlement of $ 4 billion as a result of the disaster was announced last August. It was reached by the claimants and seven defendants: the state of Hawaii, the county Maui, Hawaiian electric” Kamehameha -schools” West Maui Land Co.” Hawaiian Telcom And Spectrum/Charter communication.
But insurance companies sustained to participate, try to submit their own suits against the defendants in an attempt to reclaim some of the costs they have taken out to policyholders. This, AP said, served as an “important road barrier” to help the settlement ahead and now that it is avoided, the decision returns to a judge of Maui County for determining a path ahead.
Although insurance companies ‘disappointment’ expressed the decision to make AP, they did not indicate whether they would seek an appeal from a higher court, such as the American Supreme Court.
“An important question that was before Hawaii’s Supreme Court was whether the state laws that check the reimbursement of the health insurance policy also apply to victim and real estate insurance in limiting the ability of companies to take independent legal steps against those liable were stated, “AP reported. “The judges answered yes.”
Lawyers for the claimants expressed their concern that if insurers could find their own reimbursements separately, this could be a “deal-breaker” for the existing settlement agreement and the exemption time line for those who want to rebuild after the fires.
Power Company Hawaiian Electric has been selected by reports that investigate the cause of the fire as an important player. An AP report showed that overgrown brush under one of its power stations probably led to the outbreak of the fire. But the company’s own shaky financial status excludes the possibility of a greater arrangement. Plaintiffs corresponded to the settlement partly because of the potential for the bankruptcy of the energy company, despite the fact that the total figure is not sufficient to cover their losses.
But insurance companies themselves are not without profession, according to Jacob Lowenthal, a lawyer who represents some of the original claimants.
“Instead of going behind the defendants, insurers will have to prove to a judge that they earn it to be reimbursed because a policyholder received money from the settlement that was more than his claim,” stated the AP report based on Input from Lowenthal.
