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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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Hawaii Offers Case-by-Case Tax Relief After Kona Low Storms – Honolulu Today

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Hawaii Offers Case-by-Case Tax Relief After Kona Low Storms – Honolulu Today


The Kona Low storms that devastated Hawaii’s coastal communities also disrupted the tax filing season, overwhelming residents and businesses focused on rebuilding.Honolulu Today

The Hawaii Department of Taxation will consider requests from taxpayers adversely affected by the recent Kona Low storms to waive penalties and interest for late filing and payment of state income taxes, but will not offer blanket relief like the IRS is providing for federal taxes. Affected individuals and businesses must submit a specific form to the state describing how the disaster impaired their ability to meet tax obligations.

Why it matters

The Kona Low storms hit Hawaii right during tax season, overwhelming residents and businesses focused on rebuilding. While the IRS is automatically granting federal tax deadline extensions, the state requires a more burdensome process for taxpayers to request relief, raising concerns about accessibility and equity.

The details

The Hawaii Department of Taxation (DOTAX) announced it will consider waiving penalties and interest for late state income tax filings and payments from April 20 to July 20, 2026, but only on a case-by-case basis. Taxpayers must submit Form L-115, the Tax Relief Request for State Declared Disasters, describing how the Kona Low storms impaired their ability to meet tax obligations. DOTAX says it will not preauthorize or preapprove waivers, and will notify taxpayers if additional information is needed after the form is filed.

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  • The Kona Low storms occurred between March 10 and March 23, 2026.
  • The IRS is granting federal tax deadline extensions until July 8, 2026.
  • The state of Hawaii’s tax relief period runs from April 20 to July 20, 2026.

The players

Hawaii Department of Taxation (DOTAX)

The state agency responsible for administering and enforcing Hawaii’s tax laws.

Gary H. Yamashiroya

A spokesperson for the Hawaii Department of Taxation.

Got photos? Submit your photos here. ›

What they’re saying

“We are not considering offering blanket relief because there is no general statutory authority for the Department to do so, whereas the IRS does have such federal statutory authority.”

— Gary H. Yamashiroya, Spokesperson, Hawaii Department of Taxation

What’s next

Affected Hawaii taxpayers must submit Form L-115, the Tax Relief Request for State Declared Disasters, to the Hawaii Department of Taxation by July 20, 2026 to request a waiver of penalties and interest for late state income tax filings and payments.

The takeaway

The disparity between the IRS’s automatic federal tax relief and Hawaii’s more burdensome case-by-case state tax relief process highlights the challenges faced by disaster-impacted taxpayers who must navigate complex bureaucratic requirements to obtain assistance, potentially creating inequities in access to relief.

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Man, 26, dies after jumping off cliff at ‘End of the World’ | Honolulu Star-Advertiser

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Man, 26, dies after jumping off cliff at ‘End of the World’ | Honolulu Star-Advertiser


Hawaii island police are investigating the possible drowning of a 26-year-old man after he reportedly jumped off a cliff in Keauhou over the weekend.

Police have identified him as Mathen Jackson, 26, of Kailua-Kona.

Kona patrol officers got a 5:13 p.m. call about a swimmer at distress at Lekeleke Bay, more commonly known as the “End of the World.”

According to a witness, Jackson decided to jump off the cliff, and became distressed in the strong current. His friend called 911, and then entered the water along with a passerby to rescue Jackson.

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They reportedly brought Jackson to a nearby tour boat that had responded to the distress call. Good Samaritans on board initiated CPR and used an AED on Jackson on the boat.

The boat transported Jackson to Keauhou Pier, where the Hawaii Fire Department took over life-saving measures. He was taken to Kona Community Hospital in critical condition, and later pronounced dead at 6:36 p.m.

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Police have initiated a coroner’s inquest investigation. No foul play is suspected at this time.

Anyone with any information is asked to contact Kona Patrol Acting Sergeant Reuben Pukahi at (808) 326-4646 ext. 253.




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Ahupua‘a restoration in Molokai offers potential flooding remedy | Honolulu Star-Advertiser

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Ahupua‘a restoration in Molokai offers potential flooding remedy | Honolulu Star-Advertiser




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