Hawaii Supreme Court Upheld Maui Fire Fee Fund
The court maintained a $222 million attorney fee pool while removing restrictions on future fee appeals.
Updated on Oct. 2, 2026 in Criminal Justice
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The Hawaii Supreme Court ruled that the $222 million Common Benefit Fund for attorneys involved in the $4.037 billion Maui wildfire settlement will remain intact. The court also invalidated specific provisions that previously prevented lawyers from appealing their fee awards.
Why it matters
This ruling ensures the legal compensation structure for the 2023 disaster remains functional while protecting the right of legal counsel to challenge fee determinations. It addresses concerns regarding due process and the separation of powers within the complex litigation proceedings.
The Hawaii Supreme Court rejected challenges that the $222 million fee fund violated due process. Attorneys may now pursue appeals for fee awards in the Second Circuit court without the risk of frozen payments.
The players
Peter Cahill
He is a Second Circuit Judge who established the common benefit fund to manage legal fees.
James Duffy
He is a retired Justice of the Hawaii Supreme Court who currently chairs the review board.
The details
The $222 million fund was established by Second Circuit Judge Peter Cahill to compensate attorneys working on the massive litigation surrounding the 2023 disaster, which killed 102 people and destroyed over 2,000 structures. A review board, currently chaired by retired Justice James Duffy, remains responsible for managing the division of these fees among the legal teams.
Timeline
August 8, 2023: The Maui wildfire caused widespread destruction in Lahaina.
September 2026: The Hawaii Supreme Court conducted a hearing regarding the fee appeals.
October 1, 2026: The Hawaii Supreme Court issued the official ruling.
Legal Context
This ruling aligns with the common-fund doctrine, which allows courts to pay legal fees from a shared pool of money. It reflects a balancing act between managing mass tort settlements and ensuring constitutional due process for all involved parties.
The resolution of these fee disputes helps ensure that the litigation process continues to move forward for wildfire victims awaiting their share of the $4.037 billion settlement. Residents in Maui affected by the fire can expect the court-monitored distribution process to proceed with clearer appellate guidelines.
The takeaway
The court's intervention highlights the importance of appellate access in large-scale legal settlements to prevent the freezing of compensation. This decision provides a clearer framework for future mass tort cases where attorney fee funds are established under court oversight.
Further reading
For more background on state court proceedings, visit Criminal Justice.
Source note: This article includes information reported by Court House News Service.
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