Winds of Change | Tentative Agreement in Hawaii Wildfire Settlement Battle

In August of 2023, tragedy struck Maui with devastating wildfires that caused an enormous amount of destruction, including lost lives, personal injury, destruction of homes, and business loss. ASK LLP, along with our co-counsel Recovery Law Center, has since been on the front lines fighting for justice for the victims of the Hawaii Wildfires. On the anniversary in August of 2023, the parties involved in the wildfire state court litigation came to a tentative agreement of $4.037 billion global settlement.

During a May 28, 2025 court hearing, Judge Cahill approved the Individual Settlement Plan (ISP) and Individual Settlement Agreement (ISA). In order to get the Settlement Plan approved, there was an incredible amount of work, including succeeding in acquiring an Order from the Hawaii Supreme Court related to Subrogation’s exclusive right to remedy through a lien holder process, as well as coming to an agreement with Class Plaintiffs’ Counsel where individual plaintiffs will receive approximately 97% of the $4.037 billion global settlement.

By way of background, Subrogation (e.g., homeowner insurance) was attempting to be first in line and carve out a huge chunk of the settlement, which Individual Plaintiffs’ Counsel refused to agree to in order to protect our clients and the real victims of the wildfires. Subrogation was further unwilling to meaningfully participate in the mediation process. As such, Plaintiffs’ Counsel was forced to take the matter to court. Judge Cahill ruled that Subrogation does not have an independent right to recovery. Per the terms of the Settlement Agreement with Defendants, Plaintiffs’ Counsel needed this decision to be unappealable, meaning we asked the Supreme Court to weigh in on Reserved Questions. Oral Argument related to the Reserved Questions before the Hawaii Supreme Court occurred on February 6, 2025. Our goal was to ensure that Subrogation’s exclusive remedy related to any wildfire claims would be asserting a right of reimbursement, if any, against an insured policyholder’s respective settlement to recover past benefits paid. On February 10, 2025, the Supreme Court issued an order that met the Settlement Terms and will allow us to move forward with the settlement process. Please find relevant portions quoted below.

“Does the holding of Yukumoto v. Tawarahara, 140 Hawaiʻi 285, 400 P.3d 486 (2017), that limited the subrogation remedies available to health insurers to reimbursement from their insureds under HRS § 663-10 and barred independent actions against tortfeasors who settled with the insureds extend to property and casualty insurance carriers?

Question 1 is answered in the affirmative. Our opinion in Yukumoto v. Tawarahara, 140 Hawaiʻi 285, 400 P.3d 486 (2017), extends to property and casualty insurers such that, under Hawaiʻi Revised Statutes (HRS) § 431:13-103(a)(10)(A), the lien provided for under HRS § 663-10(a) is the exclusive remedy for a property and casualty insurer to recover claims paid for damages caused by a third-party tortfeasor in the context of a tort settlement between an insured and the tortfeasor.

Is a property and casualty insurer’s subrogation right of reimbursement prejudiced by its insured’s release of any tortfeasor when the settlement documents and release preserve those same rights under HRS § 663-10?

Because the statutory lien under HRS § 663-10 is the exclusive remedy for a property and casualty insurer in the context of a tort settlement, Question 2 is answered in the negative.”

After succeeding before the Supreme Court on the Subrogation matters, the next step was to come to an agreement with the Class Plaintiffs’ Counsel, since the $4 billion settlement fund was to be shared between the individual plaintiff group and the class plaintiff group. Before a class allocation trial was scheduled to begin before Judge Cahill, Individual Plaintiffs’ Counsel reached an agreement with the class group where class will receive $135 million of the $4 billion fund (or roughly 3% of the settlement funds).

Back to present, Judge Cahill’s approval of the ISP triggered a number of deadlines. Settlement packages are due to the appointed Settlement Administrator on or by October 1, 2025. This includes a comprehensive Claim Form, signed Release Agreement, and Supporting Documentation. ASK LLP continues to also remain mindful of the two-year wildfire anniversary date of August 2025, which has statute of limitations implications. The work is not yet over, as ASK LLP takes all steps necessary to empower our clients with information and ensure their claims are maximized within the framework of the settlement.