Honolulu (AP) – The Supreme Court of Hawaii judged on Monday that insurance companies cannot bring their own legal action against those who have been blamed for catastrophic forest fires 2023 of Maui, allowing a $ 4 billion regulation It was about to collapse to continue.
Other stages remain to finalize the agreement between thousands of people who have filed prosecution and various accused, including Hawaiian Electric Company.
The massive hell that was the deadliest in the United States for over a century has decimated the historic city of Lahaina, killing more than 100 people, destroying Thousands of properties and causing About 5.5 billion dollars Damage. Shortly after, lawyers began to deposit hundreds of prosecution.
A regulation was announced last summer, but the insurance companies were held, insisting that they should have the right to go after the defendants separately to recover the money paid to the insured.
Monday’s decision resolves a key obstacle to finalize the agreement and refer the case to a MAUI judge to determine the next steps.
Insurance companies wishing to recover billions paid to the insured by pursuing legal action against the defendants declared in a statement, they were disappointed, but did not say if they would request an examination from the Supreme Court of States- United.
A representative of insurance companies said that he would return to the Associated Press to comment on the decision and if they would request an examination from the United States Supreme Court.
A key question that was before Hawaii Supreme Court was whether the laws of states controlling the reimbursement of health care insurance also apply to insurance and property insurance to limit the capacity of companies to pursue independent legal action against persons held responsible. The judges answered yes.
The applicant’s lawyers were worried to allow insurers to continue reimbursement separately would be a break, drain what is available to pay fire victims and lead to prolonged disputes.
Gerald Singleton, one of the many lawyers representing the complainants, said they were still trying to give meaning to the decision, but are satisfied. “Now the regulations can take the next step forward,” he said.
A few days before Year’s birthday On August 8, 2023, Fire, Governor Josh Green announced that seven accused accused of having caused the tragedy had agreed to pay $ 4 billion to resolve complaints by thousands of people. They include the main defendant, Hawaiian Electric, as well as the schools of the Hawaii schools, the county of Maui and Kamehameha, the largest private landowner in Hawaii.
Lawyers representing individual complainants agreed in the middle of the fears that the main defendant Hawaiian Electric, the Power Company Blamed to have triggered the firecould be on the verge of bankruptcy.
Victims’ lawyers acknowledged that $ 4 billion was not enough to compensate for what was lost, but said the agreement was worth accepted, given the limited assets of Hawaiian Electric.
“They need every penny to restore the fabric to bring the community together,” lawyer Jesse Creed told judges during a hearing before the Supreme Court of the State last week.
Creed said he could relate to the losses that the victims faced because his own house, his children’s schools and his place of worship have just burn in the fire of the Palisades, one of the forest fires that brought generalized destruction around Los Angeles last month.
“Today’s decision will help our people to cure much earlier, while we continue to rebuild and recover,” said the Governor in an SMS in the AP. Green had previously denounced the measures of unfair insurance companies to recover the money they paid for the insured in a legal process which is called “subrogation”.
Subrogation is one -way for companies that recover the amount of complaints paid to the insured.
Insurance companies say that subrogation is a way to compensate for the costs associated with a catastrophic event, the premiums will therefore not have to increase. The process is not for natural disasters such as hurricanes, but when there is someone in fault.
So far, they have paid more than $ 2.3 billion to people and companies affected by Maui’s tragedy and expect to pay $ 1 billion more.
Subrogation is “vital for a healthy and stable insurance market” and allows insurers to hold parties in fault legally and financially responsible, “said insurance companies in their communication reacting to the decision:” Preserve rights Insurers to use subrogation is important for the insurance sector and is ultimately beneficial for all state policyholders and residents. »»
Jacob Lowenthal, another lawyer representing the individual complainants, said that the decision does not completely prevent insurance companies from being reimbursed. Instead of continuing the defendants, insurers will have to prove to a judge that they deserve to be reimbursed because an insurance lessee has received money from the regulation which was more than their complaint.
Now that the decision has answered the question of subrogation, the work can focus on the administrative complaint process to determine the awards according to the facts of each case, he said.
“The decision of the Supreme Court of Hawaii was the correct result,” said Lowenthal. “The resolution of this critical question allows the global regulation to go ahead, putting money in the hands of the victims of Maui fire as soon as possible.”
