Historic $4 billion global settlement announced in Maui wildfires lawsuits

After 4 months of mediation, a historic $4.037 billion global settlement was announced Friday to resolve all tort claims connected to the Aug. 8, 2023, Maui wildfires.

“This global settlement of over $4 billion will help our people heal,” said Hawai’i Gov. Josh Green in announcing the settlement. “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. Settling a matter like this within a year is unprecedented, and 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.”

The 7 defendants in the case — state of Hawai‘i, Maui County, Hawaiian Electric, Kamehameha Schools, West Maui Land Co., Hawaiian Telcom and Spectrum/Charter Communications — agreed to pay the more than $4 billion to provide compensation to about 2,200 affected parties who filed lawsuits for compensation arising from the windstorms and destructive and deadly fires now nearly a year ago in historic Lahaina as well as those that burned portions of Upcountry Maui.

The state will contribute to the settlement in addition to the $65 million it’s already given to the One ʻOhana Fund.

This historic global agreement also settles about 450 lawsuits filed by individuals, businesses and insurance companies in state and federal courts for fires in Lahaina and Upcountry Maui.

Civil cases involving deadly and damaging wildfires in other states can typically take years to resolve, according to attorneys familiar with wildfire litigation.

“I’d like to acknowledge the work of our expert mediators and mahalo every party to the settlement for putting Hawaiʻi’s recovery and healing above personal or other interests,” said Green. “In the coming weeks, we’ll provide a detailed account of the numbers and costs and when resources will become available to survivors and their families. Overall, the total scope of the recovery, which includes past insurance claims, county, federal and state support, will approach $12 billion.”

The settlement is subject to final documentation and court approval.

The proposed settlement is an agreement in principle. It is conditional on the resolution of insurance companies’ claims that were already paid for property loss and other damages, with no additional payments from the defendants.

Once a final settlement agreement is signed, it will take effect following judicial review and approval.

The contribution to the settlement from the state also must be approved by the Hawaiʻi Legislature. Payments would begin after such approval and are expected to start by mid-2025.

“This was an extraordinary and unprecedented effort by many people to address the tragic impacts of the wildfires in less than a year,” Green said. “Resolving this so quickly shows how Hawai‘i is different, how we come together in times of crisis to heal together as a community.”

Hawaiian Electric and its parent company Hawaiian Electric Industries will contribute a total of $1.99 billion. They also already gave $75 million to the One ʻOhana Fund.

Shelee Kimura, president and CEO of Hawaiian Electric, said the proposed settlement will allow all parties to move forward without additional challenge and divisiveness of litigation.

It will also allow everyone to work together cohesively and effectively to support the people of Lāhainā and Maui to create a future they want.

“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,” said Kimura. “While the settlement will close one chapter in the Maui recovery, the story will continue for many years and generations. Hawaiian Electric’s commitment to our communities is unwavering, and we are resolved to be here for Lahaina for as long as it takes.”

Hawaiian Electric’s objective is to ensure a tragedy like what happened on Maui never happens again on the Valley Isle or anywhere in the state.

The agreement will bring greater certainty for the utility company, enabling it to begin re-establishing the financial stability needed to invest in a sustainable and resilient future for Maui and all of Hawaiʻi.

“Kamehameha Schools is deeply committed to supporting the healing of Lāhainā families affected by the devastating fires of August 2023 and to aiding in the restoration of the Lahaina community,” said Kamehameha Schools on Friday in a statement.

The school agreed to participate in the settlement to seek closure and healing for all those affected by the tragedy. It agreed to contribute through time a portion of the settlement amount, assuming a final binding settlement agreement is reached and the school gets approval from the state Probate Court and attorney general as well as the IRS.

“Our plans to request such approvals will occur following ongoing discussions with the state and Maui County focusing on restoring Lahaina in keeping with the community’s vision for its renewal,” the Kamehameha Schools statement said.

The Maui County Council last month unanimously approved a resolution authorizing the global settlement.

The wildfires killed 102 people in Lāhainā, destroyed more than 2,000 structures there and displaced thousands of residents. A separate fire burned 19 homes in Upcountry Maui.