Hawaii Settlement, Release & Claim Closure

Good-faith settlements can protect a settling tortfeasor

HRS § 663-15.5 provides that a good-faith release, dismissal, covenant not to sue, or covenant not to enforce judgment given to a joint tortfeasor generally does not discharge other tortfeasors unless the agreement says so, reduces the remaining claims as provided by statute, and discharges the settling party from contribution liability to other joint tortfeasors.

Settlement documents must address liens and first-party rights

HRS § 663-10 governs qualifying collateral-source liens against tort settlements. Before signing a release, identify PIP, health-plan, property/casualty insurer, Medicare/Medicaid, workers’ compensation, and other reimbursement interests, and separately review any UM/UIM consent, subrogation or preservation requirements.

Settlement-closing checklist

• Identify every released person and entity.
• Define the claims being released and any claims reserved.
• Review indemnity, hold-harmless, confidentiality and attorney-fee terms.
• Address HRS § 663-10 liens and reimbursement before distribution.
• For multi-defendant cases, evaluate § 663-15.5 good-faith-settlement consequences.