Record $4bn Settlement Offered to Maui Wildfire Victims in Landmark Agreement

Maui wildfire victims rebuilding

$4bn Settlement Offers Hope to Maui Wildfire Victims

Record Settlement Reached

A landmark $4 billion (£3.1 billion) settlement has been offered to over two thousand victims of the devastating Maui wildfires which took place last year, according to a statement released by the office of Hawaii’s Governor Josh Green. This is set to resolve around 450 legal cases.

The deadly wildfires of August 2023 were the most fatal in modern US history, killing over 100 people and completely demolishing the historic town of Lahaina. The BBC has reported that a term sheet outlines a proposal for a $4.037 billion agreement designed to ‘fully resolve all Maui fires claims’.

The settlement is the result of four months of intense negotiations and is destined to be paid by seven defendants identified in the ensuing lawsuits. The list of defendants comprises the State of Hawaii, County of Maui, Hawaiian Electric, Kamehameha Schools, West Maui Land Co, Hawaiian Telcom and Spectrum/Charter Communications.

Hawaiian Electric to Contribute Nearly Half of Total Settlement

Hawaiian Electric has publicly confirmed that it will contribute an impressive $2 billion, which constitutes just under half of the total settlement. The slew of legal cases were initiated by individuals, businesses, insurance companies, fielded in both state and federal courts, as revealed by Green. The Governor also disclosed that approximately 2,200 affected parties had lodged lawsuits.

However, Mr. Green underscored that this agreement is in principle and still requires final court and legislative approval. “The agreement is conditional on the resolution of the insurance companies’ claims that have already been paid for property loss and other damages, with no additional payments from the defendants,” Green clarified.

A Step Toward Closure for the Victims

Green believes the settlement will prove instrumental in helping the victims of the tragedy to heal, stating that it has always been his priority to “avoid protracted and painful lawsuits”, thus expediting the beginning of the recovery process. He quoted, “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 any place that has suffered similar tragedies.”

Once a final settlement is duly agreed upon, it will need to be approved by Hawaii’s state legislature. Payouts are projected to start around mid-2025, Green stated.