Maui fire survivors seek Hawaiʻi Supreme Court action to prevent further settlement delays

Maui Fire Survivors have filed a Petition for Writ of Mandamus with the Hawaiʻi Supreme Court seeking immediate action to  dismiss ongoing insurance company appeals that they claim are delaying settlement payments to thousands of Maui fire survivors and families.

The petition asks the Court to direct the Intermediate Court of Appeals to dismiss pending appeals recently filed by insurance companies in two cases related to the Maui Fire litigation. The survivors argue that  these appeals attempt to relitigate legal issues the Hawaiʻi Supreme  Court has already decided twice and are preventing settlement funds from reaching affected residents.

More than 20,000 claimants are part of the Maui Fire settlements. Under the settlement agreements, payments cannot begin until insurance-related rulings are final and no longer subject to appeal.

“Survivors and families who lost loved ones deserve closure and the ability to rebuild,” the petition states. “Continued appeals push that recovery further into the future with no end in sight.”

The petition arises from two cases in which the Judge Peter Cahill granted summary judgment that limited subrogation insurance claims to only a small group of policyholders who opted out of settlement agreements and the class action case.

Insurance companies recently filed appeals seeking to continue asserting broader subrogation rights. Petitioners argue those claims directly conflict with prior Hawaiʻi Supreme Court rulings holding that insurers’ exclusive remedy is pursuing liens against settlement recoveries, not independent lawsuits.

Petitioners note the Hawaiʻi Supreme Court recently reaffirmed that subrogating insurers do not have a protectable interest allowing intervention in settlement litigation and are limited to lien recovery.

The petition asserts that:

• The issue is one of significant public importance affecting thousands of wildfire survivors and the recovery of the Lahaina community.
• Existing appellate timelines could delay final resolution for many months or longer.
• The Hawaiʻi Supreme Court has authority to intervene to promote justice and provide immediate guidance on recurring legal issues.

Petitioners argue that without decisive action, insurers may continue filing new variations of the same legal arguments, prolonging litigation and delaying recovery efforts.

The petitioners are Maui community organizations and local businesses directly impacted by the 2023 Maui wildfires and participating in the settlement process intended to support recovery and rebuilding.