Author: Surbhi Misra and Mrinalika Roy
(Reuters) – Hawaii’s largest utility said on Friday it has agreed to pay about half of a more than $4 billion legal settlement that will compensate victims of last year’s deadly Maui wildfires.
On August 8, 2023, a fire broke out in Maui, killing more than 100 people, destroying the historic coastal town of Lahaina, and causing losses estimated at $5 billion.
A lawsuit filed on behalf of thousands of home and business owners claims Hawaiian Electric failed to shut down power lines despite warnings that high winds could knock them down and spark wildfires.
The settlement requires the utility and its parent company, Hawaiian Electric Industries (NYSE:), to pay $1.99 billion, including $75 million it has already contributed to the One Ohana Initiative, a fund that provides services to the bereaved and seriously injured. Financial support.
The utility and other defendants did not admit any legal liability as part of the terms of the settlement reached after four months of mediation.
Hawaiian Electric had previously argued that the earlier of two fires in Lahaina was caused by its power lines, but they were shut down after that and the town was hit by another fire that started late in the afternoon. Destroyed by a fire that could not be controlled.
“Reaching this resolution will allow the parties to move forward without adding to the challenges and disagreements that have characterized the litigation process,” Shelee Kimura, the utility’s chief executive, said in a statement.
The settlement will also “bring greater certainty to the company so that it can begin to rebuild… its financial stability,” the statement said.
It added that the proposed payments are expected to commence from mid-2025, subject to judicial review and approval.
