HONOLULU — A significant breakthrough has emerged in the ongoing litigation involving last year’s devastating Maui wildfires, as parties have agreed to a $4 billion global settlement. This resolution comes nearly a year after the deadliest wildfire in over a century swept through the region, claiming 102 lives and demolishing Lahaina’s historic downtown.
While the specifics of the settlement term sheet have not been disclosed to the public, attorneys representing the plaintiffs have filed a motion aimed at finalizing the deal, which encompasses a total of $4.037 billion to address all claims related to the Maui fires. The motion also seeks to prevent insurers from pursuing independent claims against defendants to recoup costs payable to policyholders.
Concerns regarding the financial stability of Hawaiian Electric, the power company implicated in the wildfire’s ignition, have weighed on the negotiations, with speculation about its potential bankruptcy intensifying as investigations by federal authorities continue.
While some legal representatives, like Gilbert Keith-Agaran, have expressed that the settlement amount is “woefully short,” they highlight the necessity of moving forward, given Hawaiian Electric’s precarious financial standing. Jake Lowenthal, one of the liaison attorneys coordinating the cases, emphasized the settlement as a crucial step toward compensating fire victims, while acknowledging that the awarded funds will not rectify the extensive losses experienced by many.
Thomas Leonard, a victim who lost his home in the fire, expressed cautious optimism regarding the settlement, indicating that it provides a foundation for rebuilding his life. Hawaiian Electric has indicated that the settlement could aid in restoring its financial stability, with compensation payments anticipated to commence following final approval, expected by mid-next year.
The agreement has been framed as a collaborative effort among involved parties to expedite relief following a disaster that has deeply impacted the community. Hawaii Governor Josh Green noted that this unprecedented swift resolution—a year after such a tragedy—is aimed at ensuring affected individuals can begin rebuilding quickly, in stark contrast to victims of similar disasters in other regions.
With over 600 lawsuits filed in relation to the fires, which displaced approximately 12,000 individuals, mediation efforts have led to this pivotal settlement agreement. Maui County officials highlighted the importance of maintaining good faith negotiations for a fair distribution of the settlement proceeds.
Kamehameha Schools, the state’s largest landowner, has also pledged to contribute a portion of the settlement, contingent on reaching a final, binding agreement. As negotiations continue, the involved entities are committed to addressing the complex challenges of compensating those affected by one of the most catastrophic events in Hawaii’s recent history.
