Parties involved in lawsuits seeking damages from last year’s Maui wildfires have reached a $4 billion global settlement, as revealed in a court filing on Friday. This settlement comes nearly a year after the deadliest U.S. wildfire in over a century, which killed 102 people and destroyed the historic downtown area of Lahaina.
Although the detailed term sheet of the settlement is not publicly available, liaison attorneys filed a motion stating the global settlement aims to resolve all Maui fire claims for $4.037 billion. The motion also asks the judge to ensure that insurers cannot pursue separate claims against the defendants to recoup money paid to policyholders.
The settlement was reached amid growing concerns that Hawaiian Electric, the power company blamed by some for sparking the blaze, could be facing bankruptcy. The federal Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating the fires that occurred on August 8, 2023.
Gilbert Keith-Agaran, a Maui attorney representing victims, including families who lost relatives, expressed that the settlement amount was “woefully short.” He emphasized that it was a necessary deal given Hawaiian Electric’s limited assets and potential bankruptcy.
Jake Lowenthal, a Maui attorney chosen as one of four liaisons for coordinating the cases, noted that the settlement is a preliminary step towards compensating fire victims. He acknowledged that further work is required to determine how the settlement amount will be distributed among the claimants. “We’re under no illusions that this is going to make Maui whole,” Lowenthal told The Associated Press. “We know for a fact that it’s not going to make up for what they lost.”
Thomas Leonard, who lost his Front Street condo in the fire and spent hours in the ocean behind a seawall hiding from the flames, welcomed the news. “It gives us something to work with,” he said. “I’m going to need that money to rebuild.”
Hawaiian Electric said the settlement would help reestablish the company’s financial stability. Payments are expected to begin after final approval, anticipated no earlier than the middle of next year. CEO Sheelee Kimura stated, “For the many affected parties to work with such commitment and focus to reach a resolution in a uniquely complex case is a powerful demonstration of how Hawaii comes together in times of crisis.”
Hawaii Gov. Josh Green noted that the seven defendants would pay $4.037 billion to compensate those who have already filed claims. He described the proposed settlement as an agreement in principle that would help the community heal. “My priority as governor was to expedite the agreement and to avoid protracted and painful lawsuits so as many resources as possible would go to those affected by the wildfires as quickly as possible,” he said in a statement, highlighting the unprecedented speed of the settlement process.
Green emphasized the importance of the settlement money for Lahaina’s recovery and noted the rapid resolution compared to other regions that have suffered similar tragedies. More than 600 lawsuits have been filed over the deaths and destruction caused by the fires, which burned thousands of homes and displaced 12,000 people. A judge appointed mediators in the spring and ordered all parties to engage in settlement talks.
Defendant Maui County stated that the agreement represents a shared commitment to continue negotiating in good faith towards a larger, detailed resolution aimed at equitably distributing the settlement money. Kamehameha Schools, the state’s largest landowner and a charitable trust formerly known as the Bishop Estate, agreed to contribute a portion of the settlement, pending a final binding agreement.
Two other defendants, Hawaiian Telcom and West Maui Land Co., did not immediately respond to requests for comment. Spectrum/Charter Communications also declined to comment.
