Last year’s Maui wildfires, which resulted in the deadliest U.S. wildfire in over a century, have now led to a $4 billion global settlement between the parties involved in seeking damages. The settlement, confirmed by the office of Hawaii Gov. Josh Green, was the result of over four months of mediation and resolves approximately 450 lawsuits filed by individuals, businesses, and insurance companies for fires in Lahaina and Upcountry Maui. The seven co-defendants in the settlement include the state of Hawaii, Maui County, Hawaiian Electric, Kamehameha Schools, West Maui Land Co., Hawaiian Telcom, and Spectrum/Charter Communications. The settlement aims to help the affected communities heal and avoid prolonged and painful lawsuits.
Hawaiian Electric, a key party in the settlement, announced that its portion of the settlement amounts to $1.99 billion, which is nearly half of the total agreed upon amount. The president and CEO of Hawaiian Electric, Shelee Kimura, emphasized the commitment and focus of all affected parties in reaching resolution in what she described as a uniquely complex case. While details of the settlement were not made publicly available, a motion filed by liaison attorneys indicated that the global settlement seeks to resolve all Maui fire claims for $4.037 billion. The motion also requests that insurers cannot separately seek reimbursement from the defendants to recoup money paid to policyholders.
The settlement comes after concerns were raised about a possible bankruptcy of Hawaiian Electric Company, but now that an agreement has been reached, the focus is on determining the next steps, such as how to allocate the settlement amount among the affected parties. The Maui wildfires in August 2023 resulted in the loss of 101 lives, the destruction of the historic downtown area of Lahaina on Maui, and the displacement of 12,000 individuals. Following the wildfires, a judge appointed mediators and ordered all parties involved in the numerous lawsuits to engage in settlement talks, eventually leading to this $4 billion global settlement.
A survey conducted by the Hawaii State Rural Health Association in June found that 71% of Maui County respondents directly impacted by the wildfires reported having to cut back on food and groceries for personal financial reasons. The survey also showed that most Maui residents were more worried than hopeful about the future following the devastating wildfires. Despite the settlement, it is recognized that the agreed upon amount will not fully compensate for the losses incurred by the affected communities. However, the focus now is on ensuring that the Maui fire victims receive compensation sooner rather than later. The settlement is seen as a significant step towards helping the affected communities recover and move forward from the tragic events of the wildfires.
