State high court probes conditions of Maui wildfires settlement
Justices challenged four lawyers over their respective arguments on whether conditions of the proposed settlement affecting insurance company rights comply with
It may be weeks before the court's five justices render a decision.
After the almost two-hour hearing, representatives of opposing sides in the case expressed optimism for prevailing.
"We are right on the law, so I think the justices will see that," said
A decision by the court could determine whether the proposed settlement, which excludes insurers, can prevent the insurers from obtaining compensation, through litigation, from parties deemed responsible for the fire in an effort to at least partially cover payouts to policyholders. Without this prevention, the existing settlement arrangement falls apart.
The court's decision is also expected to establish a precedent that could apply to future cases pertaining to insurance recoveries and how property and casualty insurance companies operate in
The parties that have agreed to pay
Under Cahill's ruling, the only way insurers can recover insurance claim payments is to seek court approval to obtain refunds from policyholders for any amount of compensation that exceeds the value of what they lost.
Cahill later agreed to have
Most of Thursday's hearing was spent discussing
Creed told the Supreme Court justices that insurers sought reimbursement outside of what's permitted by state law at the expense of fire victims who lost family, friends, homes, businesses and public facilities.
"They lost the core and the fabric of their community, and they need every penny to restitch the fabric and bring the community back together," he said. "Every penny (insurers) take outside of the rules … is one less penny that goes back to rebuilding
Attorney
"The settlement is structured to give insurers everything to which they are entitled to under existing
"We're not trying to block the settlement," he said. "We would like there to be a settlement that helps everybody and resolves all claims."
Romney said the insurers refused to agree to the
"Nobody was happy with it, but everybody but the insurers felt we have to move on," he told the court.
Under current terms of the tentative settlement, the issue with the insurers must be resolved by
Chief Justice Mark Recktenwald said a decision would be forthcoming.
"Mahalo to all our attorneys for your arguments here today," he said from the bench. "The court will take this matter under advisement. We recognize the urgency of this matter and will issue a decision as soon as possible."


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