Wildfires ravaged Lahaina, Hawaii, on August 10, 2023, leaving behind a wasteland of burned homes and destroyed communities.
Rick Bowmer/AP
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Rick Bowmer/AP
HONOLULU — Litigants involved in last year’s Maui wildfires have reached a $4 billion global settlement, a court filing said Friday, nearly a year after the worst wildfires in the United States in more than a century.
A term sheet containing details of the settlement has not been made public, but liaison attorneys filed a motion Friday saying the global settlement seeks to resolve all Maui fire claims for $4.037 billion. The motion asks a judge to order insurance companies not to individually pursue defendants to recover payments made to policyholders.
“We have no illusions that this will make Maui whole,” Maui attorney Jake Lowenthal, one of four liaisons chosen to coordinate the case, told The Associated Press. “We know for a fact that this will not make up for their losses.”
Thomas Leonard welcomed the news.
“It gives us something to take advantage of,” he said. “I need this money to rebuild.”
Hawaii Gov. Josh Green said in a statement that seven defendants will pay $4.037 billion to compensate those who have filed claims related to the August 8, 2023 fire that killed 102 People were killed and the historic downtown area of Lahaina, Maui, was destroyed.
Green said the proposed solution was an agreement in principle that would “help our people heal.”
“My top priority as governor is to expedite an agreement and avoid lengthy, painful litigation so that as many resources as possible can be delivered to those affected by the wildfires as quickly as possible,” he said in a statement.
He said it was unprecedented to resolve such a lawsuit in just one year.
“It will be a good thing that our people don’t have to wait to rebuild their lives like people in many places that have suffered similar tragedies,” Green said.
Hawaiian Electric Chief Executive Sheelee Kimura said the settlement will allow the parties to move forward without increasing litigation challenges and disagreements.
“The commitment and focus of many affected parties to reach a resolution in a uniquely complex case is a powerful testament to how Hawaii can come together in times of crisis,” Kimura said in a statement.
Hawaiian Electric said the settlement will help rebuild the company’s financial stability. The company said payments will begin upon final approval, which is expected to be no earlier than the middle of next year.
Maui attorney Gilbert Keith Agaran, who represents victims, including families who lost loved ones, said the amount is “woefully inadequate.” But he said the plaintiffs need to consider the deal given Hawaiian Electric’s limited assets and potential bankruptcy.
Lowenthal noted that there are “extenuating circumstances” that have attorneys worried the lawsuit could drag on for years.
Now that a settlement has been reached, more work needs to be done next, such as how to divide the amount.
“This is the first step in getting Maui fire victims early access to compensation,” Lowenthal said.
The fires destroyed thousands of homes and displaced 12,000 people, with more than 600 lawsuits filed over the death and destruction caused. This spring, a judge appointed a mediator and ordered the parties to participate in settlement negotiations.
The other four defendants did not immediately respond to emails or phone calls seeking comment. They are Maui County, Hawaii Telecom, Kamehameha Schools (formerly Bishop Estate) and the West Maui Land Corporation.
Spectrum/Charter Communications declined to comment.
