The parties in lawsuits seeking damages for last year's Maui wildfires have reached a $4 billion global settlement, a court filing said Friday, nearly one year after the deadliest U.S. wildfire in more than a century.
The office of Hawaii Gov. Josh Green confirmed the $4.037 billion settlement, saying in a news release that it was reached after more than four months of mediation. His office said it "resolves approximately 450 lawsuits that were filed by individuals, businesses, and insurance companies in state and federal courts for fires in Lahaina and Upcountry Maui."
The seven co-defendants involved in the settlement include the state of Hawaii, Maui County, Hawaiian Electric, Kamehameha Schools, West Maui Land Co., Hawaiian Telcom and Spectrum/Charter Communications.
Green said in a statement that the settlement will "help our people heal," emphasizing that he sought 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."
Hawaiian Electric said in a news release that its portion of the settlement amounts to $1.99 billion, a little under half of the total.
"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," Shelee Kimura, president and CEO of Hawaiian Electric, said in a statement.
The term sheet with details of the settlement was not publicly available, but the liaison attorneys filed a motion Friday saying the global settlement seeks to resolve all Maui fire claims for $4.037 billion.
The motion asks the judge to order that insurers can't separately go after the defendants to recoup money paid to policyholders.
"We're under no illusions that this is going to make Maui whole," said Jake Lowenthal, a Maui attorney selected as one of the liaisons for the coordination of the cases. "We know for a fact that it's not going to make up for what they lost."
He noted there were "extenuating circumstances" that made lawyers worry the litigation would drag on for years.
Some lawyers involved have expressed concern about reaching a settlement before possible bankruptcy of Hawaiian Electric Company.
Now that a settlement has been reached, more work needs to be on next steps, like how to divvy up the amount.
"This is the first step to allowing the Maui fire victims to get compensation sooner than later," Lowenthal said.
The Aug. 8, 2023, wildfire killed 101 people and destroyed the historic downtown area of Lahaina on Maui, one of several which broke out on the island. It burned thousands of homes and displaced 12,000 people.
In the spring, a judge appointed mediators and ordered all parties in the hundreds of lawsuits filed to participate in settlement talks.
In a June survey from the Hawaii State Rural Health Association, 71% of Maui County respondents who were directly impacted by the fires said they have since had to cut back on food and groceries for personal financial reasons. The survey found that most residents of Maui were more worried than hopeful about the future.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
