In a significant legal resolution, parties involved in lawsuits related to last year’s devastating Maui wildfires have reached a $4.037 billion global settlement.
This agreement, announced nearly a year after the deadliest U.S. wildfire in over a century, resolves approximately 450 lawsuits filed in both state and federal courts by individuals, businesses, and insurance companies.
The office of Hawaii Governor Josh Green confirmed the settlement, highlighting the extensive mediation process that spanned over four months.
The settlement involves seven co-defendants: the State of Hawaii, Maui County, Hawaiian Electric, Kamehameha Schools, West Maui Land Co., Hawaiian Telcom, and Spectrum/Charter Communications.
Governor Green expressed hope that the settlement would facilitate healing for the affected communities.
“We sought to expedite the agreement and avoid protracted and painful lawsuits, ensuring that as many resources as possible would reach those affected by the wildfires quickly,” Green stated.
Hawaiian Electric, one of the primary defendants, disclosed that its share of the settlement amounts to $1.99 billion, almost half of the total compensation. Shelee Kimura, President and CEO of Hawaiian Electric, praised the collaborative effort, saying:
“For the many affected parties to work with such commitment and focus to reach resolution in a uniquely complex case is a powerful demonstration of how Hawaii comes together in times of crisis.”
The settlement’s term sheet has not been publicly disclosed. However, liaison attorneys filed a motion seeking the court’s approval of the global settlement and requesting an order to prevent insurers from pursuing separate claims against the defendants for recoupment.
Jake Lowenthal, a Maui attorney serving as a liaison in the coordination of the cases, acknowledged the limitations of the settlement. “We’re under no illusions that this is going to make Maui whole,” Lowenthal commented. “We know for a fact that it’s not going to make up for what they lost.”
The urgency to reach a settlement was partly driven by concerns about potential bankruptcy proceedings for Hawaiian Electric Company, which could have complicated future litigation and compensation efforts.
The catastrophic wildfire, which occurred on August 8, 2023, claimed 101 lives, destroyed the historic downtown area of Lahaina, and displaced 12,000 people. The extensive damage led to widespread lawsuits against various entities, alleging negligence and liability.
In the wake of the disaster, a judge appointed mediators in the spring and mandated participation in settlement discussions for all involved parties. The resolution marks the beginning of a complex process to distribute the settlement funds among the victims.
A recent survey by the Hawaii State Rural Health Association revealed that 71% of Maui County residents directly impacted by the fires have had to cut back on food and groceries due to financial strains. The survey also indicated that most residents felt more worried than hopeful about their future, underscoring the ongoing challenges faced by the community.
This settlement represents a critical step toward compensating the wildfire victims and addressing the broader legal and social ramifications of the disaster.
