An all-encompassing tentative litigation settlement over the Aug. 8, 2023, Maui wildfires was still being wrestled over Friday by stakeholders in hundreds of lawsuits filed against Hawaiian Electric, Maui County, the state, large landowners and other defendants.
Bloomberg News reported Thursday that defendants reached a tentative settlement agreement earlier this month through court-ordered mediation to pay more than $4 billion to resolve more than 450 consolidated cases pending in state Circuit Court on Maui.
On Friday, Gov. Josh Green said in a statement that some mainland parties to the lawsuits are asking for too much of the settlement, and that he is insisting more go to families affected by the fire that killed 102 people and destroyed most of Lahaina town, including about 3,500 homes and numerous businesses.
“The settlement hasn’t been finalized yet, but we are working on it 24/7 to reach a positive resolution in the very near future,” Green said.
“There are some parties on the mainland that are simply asking for too much of the settlement, resources that I insist must go to families who were devastated by the fire,” Green continued. “I will personally call them out by name next week if they hurt Hawaii’s people or further delay this agreement.”
The Bloomberg report, which was based on unnamed sources familiar with the tentative deal, said the amount of money contributed by various defendants was unclear other than Hawaiian Electric being responsible for about $1.5 billion, and that some other shares were still being finalized.
Other defendants in the case include Kamehameha Schools, West Maui Land Co., Spectrum Oceanic LLC and Hawaiian Telcom. In some cases, defendants have filed cross-claims against each other, which also would be resolved by the settlement, possibly along with qualified claims filed later.
No official cause of the fire has been determined. Plaintiffs in the litigation allege that the Lahaina fire was started by Hawaiian Electric power lines that blew down in gale-force winds and that the fast-moving inferno was fueled by dry vegetation on land owned by the state, county and private entities.
Some plaintiffs also blame Maui County and the state for insufficiently warning residents as the fire spread. One case was filed by Maui County against Hawaiian Electric. Spectrum and Hawaiian Telcom are defendants because they share some infrastructure with Hawaiian Electric.
If a $4 billion settlement were divided among 450 cases, it would amount to $8.9 million per case. However, some cases have multiple plaintiffs. It is also typical for attorneys representing plaintiffs to receive a significant amount of a settlement.
Bloomberg reported that settlement proceeds, if the pending deal is finalized, would be paid out over four years.
Jacob Lowenthal, one of several attorneys helping manage the consolidated case for plaintiffs, said Friday in an email, “The parties are working diligently to seek pre-trial resolution, but are still actively preparing for the November 2024 trials.”
During a Friday Maui County Council meeting, Council member Tasha Kama, who represents Kahului, expressed hope that the settlement brings financial closure to fire victims and helps heal the community nearly one year after the disaster, which was the deadliest wildfire in America in over a century.
The council voted unanimously to adopt a resolution authorizing a global settlement of wildfire litigation against Maui County, at least 451 cases, including some pertaining to a second fire on Aug. 8 that destroyed homes in Upcountry Maui.
The Council’s Government Relations, Ethics and Transparency Committee met in executive session July 9 with the county’s corporation counsel to discuss claims and settlement terms, according to a report from the committee recommending that the full council adopt the resolution authorizing the settlement.
“I’m no lawyer, but I guess my greatest hope in that voting for this item is that it brings closure and comfort to the victims of the fire,” said council member Tamara Paltin, who represents Lahaina.
Separate from the pending litigation settlement, there is a $175 million fund that was created by the same defendants led by the state to resolve or avoid litigation over the Maui wildfires faster than what might be achieved in court.
This One ‘Ohana Fund, also known as the Maui Wildfire Compensation Fund, was made available to people who lost a relative, or people who suffered serious injury, in the Lahaina fire.
Green announced the fund in November, and it began accepting applications March 1.
Through the fund, surviving family members who lost loved ones can receive $1.5 million. Payments to people who suffered severe injuries will be determined by the fund’s administrator, retired Judge Ronald Ibarra, but will be less than $1.5 million.
A window to participate in the fund closed Monday. As of the cutoff, 35 claims involving someone who died in the fire, and 12 personal injury claims had been received.
So far, Ibarra has approved eight claims, and the rest are pending review.
Decisions on the pending claims, and payment of claims, are expected within 90 days.
Hawaiian Electric is the biggest contributor to the fund, committing up to $75 million. The other contributors are the state ($65 million), Kamehameha Schools ($17.5 million), Maui County ($10 million), Spectrum ($2.5 million), Hawaiian Telcom ($2.5 million) and West Maui Land Co. ($2.5 million).
No fund applicants with approved claims have accepted payment offers yet. Accepting a payment requires the claimant to dismiss any litigation over the fires and forgo future litigation over the fires.
