Parties in lawsuits seeking damages for Maui fires reach $4B global settlement

By The Associated Press (NPR)
Aug. 3, 2024 3:19 p.m.
A wasteland of burned out homes and obliterated communities is left on Aug. 10, 2023, in Lahaina, Hawaii, following the wildfire that devastated the area.

A wasteland of burned out homes and obliterated communities is left on Aug. 10, 2023, in Lahaina, Hawaii, following the wildfire that devastated the area.

Rick Bowmer / AP

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.

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The term sheet with details of the settlement is 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," Jake Lowenthal, a Maui attorney selected as one of four liaisons for the coordination of the cases, told The Associated Press. "We know for a fact that it's not going to make up for what they lost."

Thomas Leonard, who lost his Front Street condo in the fire and spent hours in the ocean behind a seawall hiding from the flames, welcomed the news.

"It gives us something to work with," he said. "I'm going to need that money to rebuild."

Related: How an Oregon-based nonprofit is helping victims of the deadly Maui wildfires

Hawaii Gov. Josh Green said in a statement that seven defendants will pay the $4.037 billion to compensate those who have already brought claims for the Aug. 8, 2023, fires that killed 102 people and destroyed the historic downtown area of Lahaina on Maui.

Green said the proposed settlement is an agreement in principle and would "help our people heal."

"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," he said in a statement.

He said it was unprecedented to settle lawsuits like this in only one year.

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"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," Green said.

Hawaiian Electric CEO Sheelee Kimura said the settlement will allow the parties to move forward without the added challenges and divisiveness of litigation.

"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 Hawaiʻi comes together in times of crisis," Kimura said in a statement.

Hawaiian Electric said the settlement will help reestablish the company's financial stability. It said payments would begin after final approval and were expected no earlier than the middle of next year.

Related: After the fires, a Maui community tries a novel approach to keep homes in local hands

Gilbert Keith-Agaran, a Maui attorney who represents victims, including families who lost relatives, said the amount was "woefully short." But he said it was a deal plaintiffs needed to consider given Hawaiian Electric's limited assets and potential bankruptcy.

Lowenthal noted there were "extenuating circumstances" that made lawyers worry the litigation would drag on for years.

Now that a settlement has been reached, more work needs to be done 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.

More than 600 lawsuits have been filed over the deaths and destruction caused by the fires, which burned thousands of homes and displaced 12,000 people. In the spring, a judge appointed mediators and ordered all parties to participate in settlement talks.

Four other defendants did not immediately respond to email messages or phone calls seeking comment. They are Maui County, Hawaiian Telcom, Kamehameha Schools — formerly known as Bishop Estate — and West Maui Land Co.

Spectrum/Charter Communications declined to comment.

Copyright 2024 NPR

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