Image: HOLLYN JOHNSON/Tribune-Herald
Nearly 50 lava-related lawsuits filed
News Source: West Hawaii Today
HILO, Hawaii, May 6, 2019 (GLOBE NEWSWIRE) — Jeffrey Foster, a Kona attorney, is representing the majority of the nearly 50 plaintiffs in cases against Lloyd’s of London and its associated agents, brokers, and adjusters. These cases involve lower Puna residents whose homes were lost during the 2018 eruption of Kilauea volcano, and whose lava-related insurance claims have been denied. Foster noted a hearing scheduled for May 15 and mentioned a class action lawsuit filed in U.S. District Court in Honolulu.
The lawsuits allege breach of implied covenant of good faith and fair dealing, and conspiracy to sell surplus or excess lines of insurance. Lloyd’s is a non-admitted insurer in Hawaii, which means it can write coverage through an excess or surplus line broker licensed in the state. Many policies sold by Lloyd’s have a “lava exclusion,” which excludes coverage for homes inundated by lava unless homeowners can prove their home was taken by fire prior to the arrival of lava.
Foster also mentioned the Hawaii Property Insurance Association (HPIA), stating it has done a good job in Puna’s lava zones and serves as a model for others. He highlighted two cases where Hilo Circuit Judge Henry Nakamoto denied motions to dismiss lawsuits brought by Philip and Lanell Haysmer, and Susie Osborne, both of whom lost their homes.
Foster emphasized the goal of getting to trial as soon as possible to let the jury decide, as people are still struggling financially and not receiving the benefits of their insurance contracts. Another lawsuit was filed by Hilo attorney Stan Roehrig on behalf of Hilary Wilt, a Leilani Estate homeowner whose home was destroyed.
Additionally, there are lawsuits related to the “lava bomb” incident involving a lava tour boat. Hilo Circuit Judge Greg Nakamura granted a request to exclude a suit against Lava Ocean Tours from a court-annexed arbitration program. Shane Turpin, the boat’s captain, filed a suit seeking to limit his own liability. Another lawsuit was filed by an Oregon couple and Californians against Lava Ocean Tours and Turpin.
