A $4 billion global settlement in principle was announced Friday over liability for the Aug. 8 Maui wildfires in hundreds of lawsuits filed against Hawaiian Electric, Maui County, the state, large landowners and other defendants.
Hawaiian Electric said its portion of the settlement totals $1.99 billion and would “bring greater certainty for the company, enabling it to begin to reestablish the financial stability needed to invest in a sustainable and resilient future for Maui and all Hawai‘i.”
Gov. Josh Green late Friday afternoon announced the “historic settlement to resolve all tort claims arising from the Maui wildfires.”
“This global settlement of over $4 billion will help our people heal,” Green said in a statement. “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. Settling a matter like this within a year is unprecedented, and it will be good that our people don’t have to wait to rebuild their lives as long as others have in many places that have suffered similar tragedies.”
The proposed settlement still must receive court approval.
Nearly a year ago on Aug. 8, wildfires swept through Upcountry Maui and Lahaina, with the Lahaina blaze killing 102 people and destroying most of the historic town. Property damage included about 3,500 homes and numerous businesses.
While an official cause of the Lahaina fire has not been determined, plaintiffs in litigation allege it was sparked by Hawaiian Electric power lines that fell in high winds from a passing storm, and that dry vegetation on land owned by the state, county and private entities fueled the flames.
“The Maui fires were awful and should have never happened. This global settlement will give fair justice to the people of Lahaina, and it was achieved before the one-year anniversary of the fires, which is relatively quick in litigation,” said attorney Jesse Creed with the law firm Panish, Shea, Ravipudi, which represents some of the plaintiffs.
“We hope the people can use the money to rebuild their lives, their homes, and their communities. But the fight goes on against the greedy insurance companies. They did not agree to this global settlement and are trying to take money back from the victims who paid their premiums and send it off-island to pad their profits. The insurance companies shouldn’t take a penny as long as the victims are not fully compensated.”
Green previously had said the global agreement wasn’t finalized because some mainland parties to the lawsuits were asking for too much of the settlement.
Besides the state of Hawai‘i, Maui County and Hawaiian Electric, the defendants are Kamehameha Schools, West Maui Land Co., Hawaiian Telcom and Spectrum/Charter Communications. Spectrum and Hawaiian Telcom are defendants because they share some infrastructure with Hawaiian Electric.
The seven would pay $4.037 billion for all claims, which included about 2,200 parties. The governor said the state would contribute to the settlement in addition to its $65 million contribution to the One Ohana Fund. The state’s portion, which Green did not disclose, must be approved by the Legislature.
Hawaiian Electric said in a news release that its $1.99 billion includes the $75 million previously contributed for the One Ohana Fund.
“Achieving this resolution will allow all parties to move forward without the added challenges and divisiveness of the litigation process. It will allow all of us to work together more cohesively and effectively to support the people of Lahaina and Maui to create the future they want to see emerge from this tragedy,” said Shelee Kimura, president and CEO of Hawaiian Electric.
“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 $175 million 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.
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.
Maui County issued a statement Friday, but also did not disclose what its portion of the global settlement would amount to.
“We recognize that this settlement is critical to our survivors’ ability to move forward on a path of healing from this tragedy and sincerely appreciate the hard work and willingness of all involved in finding their way to an expedited agreement,” said Mayor Richard T. Bissen.
The settlement resolves the about 450 lawsuits filed by individuals, businesses and insurance companies in state and federal courts for fires in Lahaina and Upcountry Maui.
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.
Kamehameha Schools said Friday it is committed to supporting the families affected by the fire and to helping to restore the Lahaina community.
“Seeking closure and healing, Kamehameha Schools has agreed to contribute, over time, a portion of the aggregate settlement amount of about $4 billion, assuming a final binding settlement agreement can be reached, and Kamehameha Schools receives approvals from the State Probate Court, the State Attorney General, and the Internal Revenue Service. Our plans to request such approvals will occur following ongoing discussions with the State and Maui County focusing on restoring Lahaina in keeping with the community’s vision for its renewal,” it said.
Meantime, Green said overall recovery costs could reach nearly $12 billion.
“In the coming weeks, we’ll provide a detailed account of the numbers and costs and when resources will become available to survivors and their families. Overall, the total scope of the recovery, which includes past insurance claims, county, federal and state support, will approach $12 billion,” said Green.
“This was an extraordinary and unprecedented effort by many people to address the tragic impacts of the wildfires in less than a year,” Green continued. “Resolving this so quickly shows how Hawaii is different, how we come together in times of crisis to heal together as a community.”
Both Green and Hawaiian Electric said once the settlement agreement is finalized with all necessary approvals, payouts would be made no earlier than mid-2025.
