Honolulu — Parties suing for damages from last year’s Maui wildfires have reached a $4 billion global settlement, court documents show Friday, nearly a year after the deadliest U.S. wildfires in 100 years.
The terms of the settlement, which contain details of the settlement, have not been made public, but attorneys for the parties have filed a motion stating that the global settlement seeks to settle all Maui fire claims for $4.037 billion. The motion asks the judge to order the insurers to stop pursuing the defendants individually to collect money paid to policyholders.
The settlement comes amid concerns that Hawaiian Electric, the power company that started the fire, could be on the verge of bankruptcy. The federal Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating the fire that killed 102 people and destroyed Lahaina’s historic downtown area on Aug. 8, 2023.
Gilbert Keys-Agaran, a Maui attorney representing victims, including families who lost loved ones, called the amount “incredibly small.” But he said it’s a deal the plaintiffs should consider, given Hawaiian Electric’s limited assets and potential bankruptcy.
The settlement is a first step toward getting compensation for the fire victims, said Jake Lowenthal, a Maui attorney who was named one of four liaisons to mediate the case. More work is needed to figure out how to distribute the money.
“We’re under no illusions that this is going to make Maui whole,” Lowenthal told The Associated Press. “We know for sure that it’s not going to make up for what they’ve lost.”
The news was welcomed by Thomas Leonard, who lost his Front Street condo to the fire and spent hours escaping the flames from the ocean behind the breakwater.
“It gives us something to work with,” he said. “I’m going to need that money to rebuild.”
Hawaiian Electric said the agreement will help the company regain financial stability. Payments will begin after final approval and are expected to be made as early as mid-next year.
“The dedication and focus with which so many affected parties have worked to find solutions to this uniquely complex incident is a powerful example of how Hawaii comes together in times of crisis,” CEO Sheelee Kimura said in a statement.
Hawaii Gov. Josh Green said the seven defendants will pay $4.037 billion to compensate those who have already filed lawsuits. He called the proposed settlement an agreement in principle and said it would “help our people heal.”
“As governor, my priority has been to move quickly toward a settlement, avoid protracted and painful litigation, and ensure that as many resources as possible get to those affected by the wildfires as quickly as possible,” he said in a statement.
He said it was unprecedented for such a case to be resolved in just one year.
“It’s good that our people don’t have to wait as long to rebuild their lives as many others in the area have had to do with similar tragedies,” Green said. In an interview with The Associated Press Wednesday, Green said the settlement money would be critical to Lahaina’s recovery.
More than 600 lawsuits have been filed over the deaths and damage caused by the fires, which burned thousands of homes and displaced 12,000 people. In the spring, a judge appointed a mediator and ordered all parties to enter into settlement talks.
Defendant Maui County said the agreement represents the parties’ shared intent to continue negotiating in good faith toward a larger, more detailed solution that will equitably distribute the settlement funds.
Kamehameha Schools, the state’s largest landowner and charitable trust formerly known as the Bishop Estate, said it has agreed to donate a portion of the settlement money if a final binding agreement is reached.
The other two defendants, Hawaiian Telcom and West Maui Land Co., did not immediately respond to email messages or phone calls seeking comment.
Spectrum/Charter Communications declined to comment.
