Four lawyers are asking Hawaii’s Supreme Court to overturn a judge’s decision that redirected $222 million from a $4 billion wildfire settlement into a shared legal fee fund—money they say undermines their clients’ right to choose their own representation and limits what survivors of the Lahaina disaster will actually receive.
The August 2023 Lahaina wildfire killed dozens and destroyed an entire historic town. Now, three years later, the legal battle over who gets paid from the massive settlement has reached Hawaii’s highest court.
How the Common Benefit Fund Works
The Maui judge who approved the $4 billion settlement carved out $222 million for a Common Benefit Fund—a pool meant to compensate attorneys whose work benefited all 21,750 plaintiffs in the sprawling case. The fund also caps what individual lawyers can charge their own clients at 8% or 3%, far below the 25% contingency fee Hawaii law normally allows.
Attorneys Michael Bates, Anthony Ranken, Alex Edrenkin and John Thickstun challenged the arrangement Tuesday, arguing it violates their clients’ due process rights and equal protection under the law.
“We are not here to seek a higher fee,” their attorney Samuel Shnider told the court. “The purpose of this appeal is to address the issues of due process, of equal protection, to protect the integrity of settlements and access to justice in the next disaster.”
What’s at Stake for Wildfire Survivors
The dispute centers on whether courts can unilaterally impose fee structures that override private agreements between lawyers and clients. Justice Todd Eddins pressed Shnider on whether the trial judge truly overstepped authority or simply managed a complex mass settlement the way courts have done in other large-scale disasters.
The outcome will determine how much money actually reaches wildfire victims versus the lawyers who represented them. It also sets precedent for how Hawaii handles the next catastrophe—and whether survivors’ choice of counsel means anything when judges consolidate thousands of claims into a single settlement.
The Supreme Court has not indicated when it will rule. Meanwhile, the $4 billion sits in escrow as lawyers fight over their share of money meant for families who lost everything when fire consumed Lahaina.
Key Points
- A judge set aside $222 million from the $4 billion Lahaina wildfire settlement for a Common Benefit Fund, drastically capping what individual attorneys can charge clients
- Four lawyers argue the arrangement violates due process and undermines survivors’ right to choose their own representation
- The case will set precedent for how Hawaii handles attorney fees in the next mass disaster
https://www.courthousenews.com/hawaii-high-court-grapples-with-222m-taken-from-maui-wildfire-settlement/ – September 16, 2026
