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Hawaii’s top court hears insurance industry claims on $4B wildfire settlement

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Hawaii’s top court hears insurance industry claims on B wildfire settlement


HONOLULU (HawaiiNewsNow) – The Hawaii Supreme Court heard a $4 billion argument Thursday over the Maui wildfire lawsuits.

The court faces a decision that could kill the so-called “global” settlement between victims, Hawaii Electric, the state, Kamehameha Schools and other entities.

The unusual arguments pitted supporters of the settlement, including those responsible for the damage, against the insurance industry.

The key issue was whether insurance companies should have been included in the settlement for the $3 billion they say they are paying out in property damage claims.

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Insurance industry attorney Adam Romney pointed out that the industry has already paid out more than the $1.9 billion Hawaiian Electric has committed to the settlement.

“We will have to pay more than the people who actually caused the damage and that is fundamentally inequitable,” he said. “Ultimately we didn’t start the fire. We’re the people who start paying moneys immediately when the claims start coming in.”

Before the settlement, the insurers filed their own lawsuit against many of the same defendants.

So plaintiffs’ attorney Jesse Creed accused the insurers of a money grab.

“The insurers want a bigger piece of the pie and they want the leverage they can exploit out of a direct claim,” he said.

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The plaintiffs as well as attorneys for the defendants are also hoping the courts will block the insurers from filing their own lawsuits which would upend the settlement.

An attorney for the defendants, Ginger Anders, says $4 billion was all they could afford.

“The mediator did find that this was the most that the defendants could reasonably be expected to pay,” she said.

Also participating Thursday was attorney Terrance Revere, who expects to represent another batch of defendants in a class action case, alongside victims who have hired attorneys and filed individual lawsuits.

“We don’t want our county to go bankrupt. We don’t want to take huge amounts from the biggest charity in the state,” he said. “We are trying to do something that is reasonable.”

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Victims aren’t supposed to double dip, or get money from both the settlement and their insurance company for the same damages. That’s why insurers say they are entitled to money from the settlement.

But Chief Justice Mark Recktenwald and other justices asked whether the law provides a process to reimburse insurers after the victims are paid.

“You file a claim for a lien or assert a claim for a lien, and then the court is supposed to decide whether to recognize that claim or not,” Recktenwald said.

Romney responded that the insurers did not want to be in the position of filing claims against their own clients and that a global settlement, including insurers, is the right answer.

“We welcome settlement of this case,” Romney said. “We would like there to be a settlement that helps everybody, that resolves all claims.”

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The chief justice promised a ruling as soon as possible. Both sides expressed confidence they had carried the day.

“I’m very confident,” said plaintiffs’ attorney Cynthia Wong. “I’m very confident in our Hawaii Supreme Court.”

Creed agreed, “I’m confident not only based on the argument, but on the law, we are right on the law.”

Mark Grotefeld spoke for the insurers outside the courts chambers.

“We feel very good about our chances here,” he said.

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Even if the Supreme Court does rule quickly in favor of the plaintiffs, that will not immediately release money to the victims.

Attorneys say there will be a process in Maui Circuit Court that will determine if everyone is getting the right amount of money, including the insurance companies.

Meanwhile, the attorneys said there may still be time for a new agreement.

Both sides say they are still willing to work out a new deal.

The industry says it was given a cold shoulder by negotiators for victims and defendants and the state, during mediation that led to the $4 billion deal.

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“Did we meaningfully participate?” Romney told the court. “We were present. We were present, but we really didn’t have a say in what happened.”

He said insurers were offered some money in the mediation, but not enough.

“They walked in and said here is the number. We are not going to tell you how much of the number you get,” Romney said. “That was not an acceptable proposal for large client, large insurance companies that have to say, ‘What does that mean for all future cases for all future wildfire settlements?’”

The dispute has been delayed the settlement by five months as insurers pursued their own lawsuits against the electric company and other defendants, including the county.

The justices’ questions didn’t indicate either side was a clear winner, so to avoid losing and a potential precedent that could harm either side for the future, both sides may try to rewrite the settlement.

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“We want to sit at the table with the defendants, with the lawyers for the individuals and come to a proper resolution that would be well within the defendants ability to pay,” Grotefeld said. “We aren’t looking to bankrupt everybody.”

Plaitiffs attorneys say they are also willing to talk.

“We haven’t stopped the process of mediation. We’re still always trying to discuss settlement,” Wong said, “But if we can’t settle, the Hawaii Supreme Court will allow us to move forward with finality.”

With uncertainty about how long the court may take to rule, the negotiations could accelerate to try and finish before a ruling. If the court rules for the insurers, all negotiations would begin from nearly the beginning.

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An eclectic, off-grid Hawaii haven, 3 dead men and a suspect caught on surveillance video

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An eclectic, off-grid Hawaii haven, 3 dead men and a suspect caught on surveillance video


HONOLULU (AP) — For residents of Puna, a remote and eclectic part of Hawaii’s Big Island, the killings of three men known for embracing the community’s off-grid, free-spirited lifestyle became a startling reminder of its struggles too.

Nearly 24 hours after Jacob Baker was arrested, residents were struggling to understand what happened and were eager for answers on why authorities zeroed in on the 36-year-old as their suspect in the killings of the men who were all nearing or in their 70s.

Baker remained jailed on suspicion of murder, burglary and other charges.

Court records show Baker having repeated run-ins with police for a variety of offenses. And people who live in Puna told The Associated Press that their concern about Baker in recent days accelerated, portraying him as increasingly threatening.

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Baker is accused of being involved in the deaths of three men: a 69-year-old man found partially submerged in a cement pond, a 79-year-old man who was found just a few hundred feet (meters) away, and a third man, also 69, whose body was found about 19 miles (31 kilometers) away. As of Friday, prosecutors had not yet filed charges.

Police identified the first victim as Robert Shine and the third victim as John Carse. The name of the 79-year-old man was pending positive identification but friends identified him as Chitta Morse.

Hawaii Police Chief Reed Mahuna said investigators had not found any connections among the victims, other than two of them lived near each other.

Fixtures at drum circles

Friends of Shine and Morse say the men moved to Puna for its off-grid, tropical and communal lifestyle.

Shine enjoyed dancing and swaying to the beat at drum circles, usually on Sunday afternoons, said Donald Hyatt, a drummer.

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Hyatt last saw Shine at a party last month. A local rock-and-roll band was playing and Shine was dancing around.

“He was dancing like he loved life,” Hyatt recalled. “Bob had a permanent smile. Always in good spirits.”

Morse moved from Van Nuys, California 40 years ago “to live off-grid and to live in a warm tropical place, and to eat fruit,” said friend Jezuz Cinderland. “For 40 years he only ate raw food. Since he got to the island he just went completely raw and this was just the right environment for him to do it.”

On land rich with volcanic soil on Papaya Farms Road, Morse had what Cinderland called a “fruit forest,” growing things like coconut, avocado and durian.

“He would just share all the fruit he had,” Cinderland said. “The most fabulous abundance that you can imagine.”

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While Morse had previously been a member of the raw-food commune Cinderland moved to Puna to join, in recent years Morse was a loner, Cinderland said.

Shine was a member of Cinderland’s commune, which has been shuttered by the county for various code violations, Cinderland said.

Work-trade life

Janelle Honer, who also grew fruit on Papaya Farms Road, seems to be what connected Baker to the men, who often attended pot luck dinners and parties on Honer’s property.

Baker had been living on Honer’s property in exchange for climbing and trimming coconut trees, her ex-husband, Stephen Shaffer said. Trading work for living accommodations is common in Puna.

Hyatt said Baker left the cabin he was living in on Honer’s property months ago but returned recently claiming “squatter’s rights” and threatened Honer. Hyatt said he urged her to seek a restraining order.

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The slayings happened just days after two women requested temporary restraining orders against Baker, saying he had threatened and harassed them at a farm. One woman was staying there and the other co-owned it. A judge denied both applications, saying there was not enough proof of harassment.

No attorney was listed for Baker, who had 20 other cases in the court record in the past two decades, many of them traffic infractions. In most of those cases, Baker represented himself.

Honer, who Shaffer said was traveling out of the country, couldn’t be reached for comment.

A memorial for the men was planned for Saturday next to Honer’s place.

Puna is one of the few places in Hawaii where there’s affordable land, and the area’s infrastructure hasn’t kept up with its growth, said Ashley Kierkiewicz, who represents Puna on the county council.

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While Puna has a reputation as a quirky frontier, it’s also a place rich in culture where people are resilient and lean on each other, she said.

Puna, with its landscape that’s a mix of lush jungle and barren lava-rock fields, also struggles with drugs, poverty and limited resources, said longtime resident Tiffany Edwards Hunt.

“People have this mistaken impression that they can come to Hawaii and heal,” she said. “Hawaii can either really be kind to you or it can chew you up and spit you out.”

Surveillance cameras aid capture

Mark Wyatt and Richard Valdez played a key role in Baker’s capture, calling the police when their surveillance camera system pinged Valdez’s phone and it showed Baker on their property on Thursday. Their property is about a half-mile from Carse’s home, but they didn’t know him well.

The videos show Baker, shirtless and barefoot, with a dog walking near a road and getting down on the ground as cars went by, in an apparent attempt to avoid being seen.

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“He was ducking from the traffic, so it was pretty obvious” that he was trying to avoid being found, Valdez said.

Authorities arrested Baker a short distance away after finding him in a small cave, police said.

Wyatt said he believed Baker had been hiding near his property in a small, makeshift camping spot over a bluff overlooking the ocean. He said Baker stole couch cushions from a container outside his home and some charcoal, and Baker used coconut tree palm fronds to cover the site.

Valdez said he hadn’t seen Baker in about two years. Back then, he said, Baker was living next door to them, renting space from their neighbor while trimming coconuts from trees and selling them just off the area’s main road. He lived next door for about six months, Valdez said.

“He told me he was from Maui and that he had just had a newborn baby and his girlfriend had left and that he was trying to get his life together,” Valdez said. “So he seemed pretty normal and conscientious, so it’s hard to fathom that this happened.”

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___

Collins reported from Hartford, Connecticut.





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Manitowoc-built crane sets sail for Navy base in Hawaii

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Manitowoc-built crane sets sail for Navy base in Hawaii


MANITOWOC (WLUK) — A 200-foot Manitowoc-built crane is on its way to a Navy Base in Hawaii.

Big Blue P-82 sailed out of the Manitowoc Harbor Friday morning to Navy Joint Base Pearl Harbor-Hickam on the island of Oahu.

Manitowoc Mayor Justin Nickels posted a bon voyage post to social media, reading in part:

Pearl Harbor is where America’s involvement in World War II began — a moment that changed the course of history. And it is altogether fitting that Big Blue now heads to that very place, because Manitowoc played a defining role in that same war effort. Right here on the same peninsula where Big Blue was built, the people of Manitowoc constructed 28 submarines that helped secure victory and defend freedom around the world. That legacy of ingenuity, patriotism, and hard work is still alive today. The men and women of this community continue to build big things — important things — that support our nation and strengthen our future. Their skill and dedication are part of a story that spans generations. We’re proud of Big Blue, proud of those who built it, and proud of Manitowoc’s enduring place in American history. Safe travels, Big Blue; from a city that helped win a war to the harbor where it began, we wish you fair winds and following seas

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The crane will make the 7,600 to 7,800 nautical mile journey from the Manitowoc Harbor through the St. Lawrence Seaway, down the East Coast of the U.S. before going through the Panama Canal to the island of Oahu.



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Hawaii authorities searching for suspect after 3 killings

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Hawaii authorities searching for suspect after 3 killings


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Hallie Jackson NOW

Hawaii State Police are looking for a suspect after three elderly men were killed on the Puna District, a large rural area on the Big Island. NBC News’ Camila Bernal reports.  

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