A devastated landscape of burned-out homes and wiped-out communities remains on August 10, 2023 in Lahaina, Hawaii, after a wildfire devastated the area.
Rick Bowmer/AP
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Rick Bowmer/AP
HONOLULU — Parties in a lawsuit seeking damages from last year’s Maui wildfire have reached a $4 billion global settlement, according to court filings Friday, nearly a year after the deadliest U.S. wildfire in more than a century.
The terms of the deal are not public, but attorneys filed a motion Friday saying the global settlement would settle all Maui fire claims for $4.037 billion. The motion asks the judge to order that insurers not pursue individual defendants to recover money already paid to insureds.
“We have no illusions that this will make Maui whole,” Jake Lowenthal, a Maui attorney selected as one of four liaisons to coordinate the cases, told The Associated Press. “We know for a fact that this will not make up for what they lost.”
Thomas Leonard, who lost his Front Street apartment in the fire and spent hours in the ocean behind a breakwater to escape the flames, was delighted with the news.
“It gives us something to work with,” he said. “I’m going to need that money to rebuild.”
Hawaii Gov. Josh Green said in a statement that seven defendants will pay $4.037 billion to compensate people who filed claims in the Aug. 8, 2023, fire that killed 102 people and destroyed the historic downtown area of Lahaina on the island of Maui.
Green said the proposed deal was a deal in principle and would “help our people heal”.
“My priority as governor is to expedite the agreement and avoid lengthy and painful litigation so that as many resources as possible can be directed to those affected by the wildfires as soon as possible,” he said in a statement.
He said it was unprecedented to settle cases like this in just one year.
“It’s good that our people don’t have to wait as long to rebuild their lives as others in many places that have suffered similar tragedies,” Green said.
Hawaiian Electric CEO Sheelee Kimura said the agreement will allow the parties to move forward without further challenges and disagreements during litigation.
“The fact that so many affected parties worked with such commitment and focus to reach a resolution in an exceptionally complex case is a powerful testament to how Hawaiʻi comes together in times of crisis,” Kimura said in a statement.
Hawaiian Electric said the deal will help restore the company’s financial stability. The company said payments will begin after final approval and are not expected before the middle of next year.
Gilbert Keith-Agaran, a Maui attorney who represents victims, including families who lost loved ones, said the amount was “far too small.” But he said it was a deal the plaintiffs should consider because Hawaiian Electric has limited assets and is likely to go bankrupt.
Lowenthal noted that there were “mitigating circumstances” that made lawyers fear the litigation would drag on for years.
Now that an agreement has been reached, there are several next steps to take, such as how to divide the money.
“This is the first step toward getting compensation for the Maui fire victims soon,” Lowenthal said.
More than 600 lawsuits have been filed over the deaths and damages caused by the fires, which destroyed thousands of homes and displaced 12,000 people. In the spring, a judge appointed a mediator and ordered all parties to enter into settlement talks.
The other four defendants did not immediately respond to email messages or phone calls seeking comment. They are Maui County, Hawaiian Telcom, Kamehameha Schools — formerly known as Bishop Estate — and West Maui Land Co.
Spectrum/Charter Communications declined to comment.
