Victims of last year's devastating Maui wildfire have secured a $4 billion settlement agreement, according to court filings. The settlement aims to address the claims stemming from the catastrophic fire that ravaged the historic town of Lahaina and resulted in the deaths of 102 people.
The agreement, filed by liaison attorneys, seeks to resolve all claims related to the August 8, 2023, fire. The attorneys have requested that the judge prohibit insurers from pursuing separate claims against the defendants receiving settlement funds. The federal Bureau of Alcohol, Tobacco, Firearms and Explosives continues to investigate the incident, which many believe was sparked by Hawaiian Electric's equipment.
Hawaiian Electric, facing potential bankruptcy due to its alleged role in the fire, is a central figure in the settlement. Gilbert Keith-Agaran, an attorney representing some of the fire victims, described the settlement amount as "woefully short" but acknowledged the necessity of considering the electric company's limited financial resources.
The settlement marks a significant step toward compensating the thousands of individuals affected by the wildfire. "We're under no illusions that this is going to make Maui whole," said Jake Lowenthawl, a Maui attorney. "We know for a fact that it's not going to make up for what they lost."
Hawaiian Electric issued a statement emphasizing that the settlement will help reestablish the company's financial stability. CEO Sheelee Kimura highlighted the collaborative efforts that led to the agreement, stating, "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."
Hawaii Governor Josh Green praised the settlement as historic and crucial for the healing process. "This Global Settlement of over $4 billion will help our people heal," he said. "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 terms of the settlement include contributions from seven defendants: the State of Hawaii, County of Maui, Hawaiian Electric, Kamehameha Schools, West Maui Land Co., Hawaiian Telcom, and Spectrum/Charter Communications. Hawaiian Electric is set to contribute nearly $2 billion, approximately half of the total settlement amount.
Governor Green's office confirmed that the deal in principle was reached after four months of intense negotiations. The agreement stipulates that it must fully resolve all claims related to the Maui fires and is conditional upon the resolution of insurance claims for property loss and other damages.
The settlement is still subject to final court and legislative approval. Once approved, payments to the affected parties are expected to begin by mid-2025. Governor Green emphasized that avoiding prolonged legal battles was a priority to expedite the recovery process for the victims.
The tragic wildfire, considered the deadliest in modern U.S. history, has left a lasting impact on the Maui community. Many lawsuits were filed in the aftermath, including claims that Hawaiian Electric's equipment failures contributed significantly to the disaster. One particular lawsuit highlighted a 2014 plan by the Wildfire Management Organization that identified Lahaina's vulnerabilities.
