HONOLULU (KHON2) — The Hawaii Supreme Court announced Wednesday it will hear arguments regarding the proposed $4 billion settlement related to the Lahaina wildfire, keeping hopes alive for a resolution in the ongoing legal battle.
The settlement involves claims from wildfire victims against seven defendants, including the state, Maui County, and Hawaiian Electric Company (HECO).
A Maui judge, Peter Cahill, previously ruled that insurance companies cannot seek reimbursement from these defendants.
Judge Cahill has requested the Supreme Court’s input on the matter. Victor Creed, an attorney representing the wildfire victims, stated that if the court had chosen not to intervene, the settlement would have fallen apart, forcing the parties back into litigation.
He warned that this could lead to HECO facing bankruptcy.
Attorneys representing the insurance companies declined to comment on the case.
Lawyers have 40 days to submit their briefs to the court, followed by an additional 40 days for responses.