Trial determines how to divide $4B Maui wildfire settlement among plaintiffs

    MAUI, Hawai'i (KITV) -- Months after the $4 billion settlement for Maui's fire survivors was announced, a trial on Wednesday determined how to divide the money among plaintiffs.

Much of the discussions during the proceeding were closed to the public.

Attorney Jacob Lowenthal, who represents individual plaintiffs, said the settlement is one of the fastest for wildfire cases across the country, partly because of a concerted effort between him and the other lawyers involved.

"We think that overall, the resolution is going to benefit the victims of the Maui fire, ultimately," Lowenthal said.

Lowenthal added there has been support from other entities to roll out negotiations relatively quickly.

"The state was, to their credit, more focused on resolution than litigation, so that made a huge help as well," Lowenthall explained.

The settlement was announced about a year after the 2023 fire, with defendants Hawaiian Electric, the state, and other large landowners.

Lowenthal added the cause of the fire was practically indisputable, which is another reason the settlement is moving more swiftly than others have.

"It didn't give the main defendants much reasons to drag things out indefinitely," Lowenthall said.

According to Lowenthal, attorneys plan to submit terms for the resolution next week.

However, the conditions hinge upon whether the Supreme Court will rule to require insurance companies to accept reimbursements from the settlement, or allow them to sue defendants on their own, which would delay the distribution of money.

"It will most likely mean that the global settlement agreement is going to fail and we'll be back to scheduling individual trials and all the things we were doing before we entered this global agreement in the first place," Lowenthal explained.

Oral arguments over the insurance companies are scheduled for next Thursday in Supreme Court, with a ruling expected within 45 to 60 days.