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Hawaii court rules against insurance companies in Maui wildfire, allowing $4B settlement to proceed

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Hawaii court rules against insurance companies in Maui wildfire, allowing B settlement to proceed


Hawaii’s Supreme Court ruled Monday that insurance companies can’t bring their own legal actions against those blamed for Maui’s catastrophic 2023 wildfire, allowing a $4 billion settlement that was on that the verge of collapse to proceed.

Other steps remain in finalizing the deal between thousands of people who lodged lawsuits and various defendants, including Hawaiian Electric Company.

The massive inferno that was the deadliest in the U.S. in more than a century decimated the historic town of Lahaina, killing more than 100 people, destroying thousands of properties and causing an estimated $5.5 billion in damage. Soon afterward, attorneys began lodging hundreds of lawsuits.

A settlement was announced last summer, but insurance companies held out, insisting that they should have the right to go after the defendants separately to recoup money paid out to policyholders.

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Monday’s ruling resolves a key roadblock to finalizing the deal and sends the case back to a Maui judge to determine next steps.

A representative for the insurance companies said he would get back to the The Associated Press to comment on the ruling and whether they will ask for review at the U.S. Supreme Court.

A key question that was before Hawaii Supreme Court was whether state laws controlling health care insurance reimbursement also apply to casualty and property insurance in limiting companies’ ability to pursue independent legal action against those held liable. The justices answered yes.

Plaintiff lawyers were worried allowing insurers to pursue reimbursement separately would be a deal-breaker, drain what is available to pay fire victims and lead to prolonged litigation.

Gerald Singleton, one of the many attorneys representing the plaintiffs, said they’re still trying to make sense of the ruling but are pleased with it. “Now the settlement can take the next step forward,” he said.

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RELATED STORY | California homeowners brace for 22% insurance rate hike following wildfires

A few days before the one-year anniversary of the Aug. 8, 2023, fire, Gov. Josh Green announced that seven defendants accused of causing the tragedy had agreed to pay $4 billion to resolve claims by thousands of people. They include the main defendant, Hawaiian Electric, as well as the state of Hawaii, Maui County and Kamehameha Schools, the largest private landowner in Hawaii.

Attorneys representing the individual plaintiffs agreed to the deal amid fears that main defendant Hawaiian Electric, the power company blamed for sparking the blaze, could be on the brink of bankruptcy. Other defendants include the state, Maui County and Kamehameha Schools, the largest private landowner in Hawaii.

Victims’ attorneys acknowledged that $4 billion wasn’t enough to make up for what was lost but said the deal was worth accepting, given Hawaiian Electric’s limited assets.

“They need every penny to restitch the fabric to bring the community back together,” attorney Jesse Creed told the justices during a hearing before the state Supreme Court last week.

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Creed said he could relate to the losses the victims face because his own home, children’s schools and place of worship just burned in the Palisades fire, one of the wildfires that brought widespread destruction around Los Angeles last month.

“Today’s decision will help our people heal much sooner, as we continue to rebuild and recover,” the governor said in a text message to the AP. Green had previously denounced as unfair insurance companies’ moves to recoup money they’ve paid to policyholders in a legal process that’s called “subrogation.

Subrogation is one way companies recover the amount of claims paid to policyholders.

Insurance companies say subrogation is a way to offset costs associated with a catastrophic event so premiums won’t have to go up. The process isn’t for natural disasters such as hurricanes, but for when there is someone at fault.

So far they have paid more than $2.3 billion to people and businesses affected by the Maui tragedy and expect to pay $1 billion more.

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Flood advisory in effect for Oahu, Maui and Hawaii island | Honolulu Star-Advertiser

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Flood advisory in effect for Oahu, Maui and Hawaii island | Honolulu Star-Advertiser


UPDATE: 11:13 a.m.

A flood advisory is in effect for Oahu until 2:15 p.m. today due to flooding caused by excessive rainfall.

At 11:09 a.m., the radar showed heavy rain developing and traveling slowly eastward over Oahu.

“The heaviest rain is currently over the western half of the island, but is expected to fill in and move over the remainder of the island over the next few hours. Rain was falling at a rate of 0.5 to 2 inches per hour,” forecasters said.

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Some locations that will experience flooding include Honolulu, Waipio, Mililani, Pearl City, Waikele, Wahiawa, Wheeler Field, Waipahu, Aiea, Kunia, Halawa, Waiahole, Waikane, Schofield Barracks, Salt Lake, Kahaluu, Moanalua, Ahuimanu, Iroquois Point and Ewa Beach.

Meanwhile, the flood advisories have been extended for Hawaii County and 1:45 p.m. and Maui County until 2:30 p.m.

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At 10:30 a.m., the radar showed heavy rain moving over portions of the Puna and Kau coasts. Rain was falling at a rate of 1 to 2 inches per hour, with the heaviest rates of up to 3 inches per hour between Hawai‘i Volcanoes National Park and Pahoa, including portions of Pahoa Kalapana Road and Highway 11.

Some locations that will experience flooding include Hilo, Hawaii Volcanoes National Park, Volcano, Glenwood,

Mountain View, Wood Valley, Hawaiian Acres, Pahala, Orchidlands Estates, Keaau, Pahoa, Punaluu Beach, Kawa Flats, Papaikou, Naalehu, and Fern Forest.

At 11:04 a.m., the radar showed heavy rain over portions of eastern Maui. Rain was falling at a rate of 1 to 2 inches per hour with the highest rainfall rates in the upslope areas between Kaupo and Nahiku.

“While no significant impacts have been noted as of yet, additional rainfall over that area today is expected to produce more flooding concerns,” forecasters said.

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The flood watch remains for all Hawaiian Islands.

EARLIER COVERAGE

A flood watch is in effect for all Hawaiian Islands today through Monday afternoon due to the possibility of flash flooding caused by excessive rainfall, according to the National Weather Service.

A deepening Kona low north of Kauai is expected to move southwest today and Monday before turning west. Thunderstorms and heavy showers will affect the region over the next couple days leading to the flash flood threat. Winds may strengthen to wind advisory levels Monday for lower elevations and high wind warnings on Hawaii island summits. Lingering moisture may keep rain over the state through the week.

>> Prepare for rainy weather as Kona low hits Hawaii

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“Flood prone roads and other low lying areas may be closed due to elevated runoff and overflowing streams,” according to the forecast. “Urban areas may receive more significant flooding and property damage due to rapid runoff. Significant flooding may occur due to the overflow of streams and drainages. Landslides may also occur in areas with steep terrain.”

The greatest flood risk is along the southeastern mountain slopes of Maui and Hawaii counties as deep moisture spreads up the slopes.

The flood watch may be extended into Tuesday if weather conditions persist.

Flood advisories are also in effect for Hawaii County until 10:45 a.m. today, while Maui County will remain in effect until 11:30 a.m. today.

At 7:45 a.m. today, the Hawaii island radar indicated heavy rain traveling over portions of Puna and Kau coasts. Rain was falling at a rate of 1 to 2 inches per hour, with isolated heavier rainfall rates of 3 inches per hour between Pahala and Pahoa including areas of Pahoa Kalapana Road and Highway 11.

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Some locations that will experience flooding include Hilo, Hawaii Volcanoes National Park, Volcano, Glenwood, Mountain View, Wood Valley, Hawaiian Acres, Pahala, Orchidlands Estates, Keaau, Pahoa, Punaluu Beach, Kawa Flats, Papaikou, Naalehu, and Fern Forest.

At 8:19 a.m. today, the Maui County radar showed heavy rain continuing to develop and move over the eastern portions of the island. Rain was falling at a rate of 1 to 2 inches per hour with the highest rates and totals found in the upslope areas between Kaupo and Nahiku.

Some locations that will experience flooding include Kipahulu, Kaupo, Hana, Haleakala National Park and Hamoa.



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Volcanic Ash: Tom Coffman a must read for understanding Hawaii | Honolulu Star-Advertiser

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Volcanic Ash: Tom Coffman a must read for understanding Hawaii | Honolulu Star-Advertiser




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Hawaii delegation raises legal concerns over Venezuela

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Hawaii delegation raises legal concerns over Venezuela


HONOLULU (KHON2) — Three of Hawaii’s Congressional Delegation released statements on Saturday, Jan.3, in response to President Trump’s overnight operation in Venezuela.

“At a time when Americans can’t afford rent, healthcare, or groceries, the Trump administration found time and money for regime change in Venezuela, risking a war that Americans don’t want. Before we spend another dollar on this reckless conflict, the American people deserve answers, including what this administration’s exit strategy is. Americans wanted help and hope in 2026, not another war,” said Tokuda.

U.S. Representative Jill Tokuda (HI-02)

Others echoed concerns about the legality of the operation, pointing to both international law and the U.S. Constitution. While acknowledging Venezuela’s political situation, some members of Hawaii’s congressional delegation said military action raises serious questions that extend beyond the actions of any one leader.

“Nicholas Maduro is an illegitimate and oppressive dictator and the people of Venezuela deserve better. But that alone doesn’t justify an armed attack on a sovereign country and forced regime change in violation of international law,” said Case. “And unless there was an imminent threat to our country, it doesn’t justify violating our Constitution and war powers law, which wisely reserves to Congress the grave decision to go to war.”

U.S. Representative Ed Case (HI-01)

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Case also emphasized that Congress plays a critical role in decisions involving war and military force.

“I don’t yet know the full facts or the President’s justification to attack Venezuela, place our troops in harm’s way, capture Maduro and administer the country,” said Case. “But the precedent of any President taking our country to war arbitrarily, single-handedly and without the approval of Congress has cascading effects that are far more dangerous.”

U.S. Representative Ed Case (HI-01)

Senator Brian Schatz also weighed in, saying the operation could put American lives and interests at risk.

“President Trump is jeopardizing American lives and interests — and stating plainly that the purpose is for U.S. oil companies to make money in Venezuela. Either these companies knew about these plans in advance, or he’s ordering corporations to be a part of his effort to overthrow another government,” said Schatz. “This operation is illegal under international law and unconstitutional without prior congressional approval. The United States should not be running other countries for any reason. We should have learned by now not to get involved in endless wars and regime change missions that carry catastrophic consequences for Americans.”

U.S. Senator Brian Schatz (D-Hawai‘i)

Hawaii’s congressional lawmakers stressed that, while the situation in Venezuela is complex, military action should not be taken lightly.

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“Nicolas Maduro should be held accountable for his actions, but Donald Trump’s unilateral decision to overthrow his regime does nothing to make our country safer. Instead, without any authorization from Congress or any clear plan for what comes next, Trump is plunging our nation into a conflict that could put American lives at risk while destabilizing the region and our relationships with our allies,” said Hirono. “Trump’s characteristically chaotic suggestion that the U.S is “going to run” Venezuela indefinitely, without any details, shows his disregard for the consequences of decades of misguided American intervention around the world. Trump promised to “end forever wars” and not engage in regime change. As usual, he says one thing and does another.”

U.S. Senator Mazie K. Hirono (D-HI)

With questions still surrounding the operation, Hawaii’s congressional leaders say transparency and oversight are critical moving forward. They stated that decisions of this extent should not be made without the involvement of Congress or the public.



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