L.A. Wildfire Probe Ramps Up as $4B Maui Wildfire Settlement Gets Green Light

The long road to recovery for Maui fire survivors got a boost when Hawaii’s Supreme Court unanimously cleared a crucial hurdle, rejecting attempts by insurance companies to carve out a piece of a $4 billion wildfire litigation settlement.

This ruling means survivors are one step closer to receiving much-needed funds to rebuild. It also provides survivors of more recent fires in and around Los Angeles important perspectives for how litigation outcomes can take shape.

Hawai’i high court blocks insurers from taking settlement funds

The February 10 ruling dismissed arguments from insurers who claimed they were entitled to a share of the monetary settlement, which includes contributions from Hawaiian Electric, the state of Hawai’i, Kamehameha Schools, and other entities. The insurance companies argued they should be reimbursed for the $3 billion they’ve already paid out in property damage claims. However, the court ruled that the insurers’ only recourse is to pursue individual policyholders who may have received excess funds.

This ruling was critical, as it threatened to derail the entire global settlement, a complex agreement designed to provide swift relief to fire victims.

The settlement breakdown reveals that Hawaiian Electric, deemed responsible for sparking the fire due to downed power lines and negligence, will contribute $1.99 billion. The state and Kamehameha Schools, whose overgrown vegetation contributed to the fire’s spread, will each pay $872.5 million. Spectrum Oceanic LLC and Hawaiian Telcom, sharing utility infrastructure, will collectively pay approximately $300 million.

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Southern California Edison and Negligence Claims

For the attorneys in the Los Angeles offices of Waters Kraus Paul & Siegel, wildfire litigation is personal since several attorneys and staff were directly impacted by fires. The firm has dedicated its resources and expertise in complex litigation to assisting fire victims.

The Lahaina settlement and recent California wildfires have brought renewed focus on the potential role of utility companies in preventing these disasters. Notably, the Eaton fire that destroyed hundreds of homes in the Altadena community has become a point of intense scrutiny.

A series of lawsuits claim that Southern California Edison failed to adequately maintain vegetation around its power lines, which contributed to the spread of the fires. The investigations and legal proceedings surrounding these fires are ongoing, and they are likely to have significant implications for fire safety regulations and utility company practices in the region.

In the Texas panhandle, survivors of the Smokehouse Creek fire have filed lawsuits against XCEL Energy Services, Southwestern Public Service Company, and Osmose Utility Services, Inc. According to the lawsuits, the utility companies failed to properly inspect, maintain, and replace utility poles and ensure that power infrastructure was constructed, installed, operated, and maintained safely. Following that fire, XCEL acknowledged that its equipment may have caused the fire, which burned more than a million acres of land and led to the death of two people.

At Waters Kraus Paul & Siegel, we have personally experienced the catastrophic impact of these disasters and are committed to helping victims rebuild their lives and hold responsible parties accountable. Our nationally recognized plaintiffs’ firm brings decades of experience in personal injury and wrongful death litigation to fight for those affected by wildfires.