A $4.04 billion global interim settlement has been reached to resolve all lawsuits arising from claims related to the Maui wildfires, according to an order from the 2nd Circuit Court in Hawaii on Aug. 19.

However, insurance companies involved in the settlement will be prohibited from independently pursuing claims against third parties involved in the settlement, according to a report by AM Best.

Seven defendants, along with plaintiffs’ attorneys, announced the settlement, which aims to resolve nearly 450 lawsuits filed in state and federal courts in the wake of wildfires in Lahaina and Upcountry Maui.

The August 2023 fires devastated the town of Lahaina and were the most destructive in Hawaii history, according to Hawaii Gov. Josh Green’s office.

In his order limiting subrogation rights, Judge Peter T. Cahill referred to the decision in Yokomoto v. Tawarahara, which held that insurers do not have an unrestricted right to subrogation but are instead limited to indemnification rights set forth by state law.

Read more: One Year After Maui Wildfires, Survivors Continue Their Journey

Green urged alternative solutions lawyers on the mainland to respect Cahill’s decision, stressing the importance of not hindering the recovery process for people affected by the bushfires.

He noted that climate change requires cooperation between countries, insurance companies and lawyers to develop better ways to resolve disputes and facilitate recovery.

The defendants contributing to the settlement include the state of Hawaii, the County of Maui, Hawaiian Electric Industries, West Maui Land, Spectrum/Charter Communications, Hawaiian Telecom and Kamehameha Schools, the governor’s office said. Hawaiian Electric said it will contribute $1.99 billion to the total settlement.

Shelly Kimura, Hawaiian Electric Chairman and CEO, said the resolution will allow all parties to avoid the challenges and divisions of litigation, enabling them to work together more effectively to support the recovery of Lahaina and Maui.

The settlement also provides Hawaiian Electric with greater financial certainty as it seeks to restore its stability.

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