by Andrew Walden
A note, September 6, 2024, from the investment bankers at Evercore, (above) outlines the process by which the State is attempting to corner and pressure Lahaina insurers into accepting a smaller amount in Green’s ‘settlement’ deal. Apparently the negotiations are $600M vs $1.2B.
A ruling of a state supreme court can only be appealed to the US Supreme Court.
If the State Supreme Court were to gut subrogation, the effects on the insurance market and on consumers in Hawaii would be immense.
The challenge for shysters is to come up with a State Supreme Court ruling that corners insurers while not gutting subrogation. That’s not likely to be possible.
The chances of an expensive, boneheaded precedent being set are greatly enhanced by the fact that this is not about the public interest nor is it about Lahaina fire victims--it is about local political insiders and the personal money they have tied up in Hawaiian Electric stock.
It is therefore more likely that the State Supreme Court will stall its decision as a pressure tactic while negotiations continue behind the scenes. Once negotiations are concluded, the ruling will be moot so subrogation and due process can be upheld.
Green needs to show HE stockholders, many of whom are Hawaii voters and political insiders, that he is going to the mat for them. HE and KSBE are totally intertwined as if they were one thing. That’s why KSBE Trustees are willing to wipe out 9% of the KSBE Trust for this settlement.
Meanwhile it is not clear that HE can survive even the $600M hit. So KSBE Trustees should be asked whether they are throwing good money after bad.
Its easy for KSBE Trustees to spend lots of Trust money to save a little of their own HE stock value. Too bad none of the Trustees are invading KS classrooms grabbing the chalk out of teachers' hands. Now THAT would get a response!
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