Unprecedented $4 billion Settlement Reached in Maui Wildfire Case Against Hawaiian Electric and others

Honolulu, HI – Plaintiffs in the devastating Maui wildfire case have reached a historical $4 billion settlement against seven defendants, including Hawaiian Electric and the state of Hawaii, according to an announcement from Governor Josh Green’s office on Friday.

The Settlement

The staggering $4.037 billion settlement, if approved by the court, will provide compensation to all those who have issued claims due to the disastrous windstorms and wildfires that afflicted Maui on August 8, 2023. This includes approximately 2,200 afflicted parties who filed lawsuits. Other defendants listed in the settlement include the County of Maui, Kamehameha Schools, West Maui Land Co., Hawaiian Telcom, and Spectrum/Charter Communications.

The Community’s Road to Recovery

Gov. Green emphasized the primary purpose of the settlement is to help the people of Maui recover as swiftly as possible from the losses suffered due to the wildfires. “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,” he stated in a press release.

Hawaiian Electric, after four months of mediation, said the aim is to prevent a recurrence of such catastrophic events. Shelee Kimura, president and CEO, expressed, “Our objective is to make sure a tragedy like this never happens again.”

Settlement Repercussions

Among multiple factors considered in the fierce negotiations was not just the defendants’ liability but also their ability to pay. Attorney Jesse Creed, representing some of the plaintiffs, highlighted the enormous devastation that Maui’s people faced, with losses including homes, businesses, and vital community structures. He added that the legal battle against the insurance companies continues, insisting that insurance firms should not profit until the victims are fully compensated.

Jacob Lowenthal, another plaintiff attorney, acknowledged the settlement’s insufficiency to fully restore Maui. “We recognize that this settlement is far from making the community of Maui whole. But this will provide critical compensation to Maui sooner than much later without extensive litigation that brings with it no promise or guarantee that more would even be possible”, Lowenthal stated.

The Impact of The Hawaiian Wildfires

This settlement comes nearly a year after wildfires in August 2023 ravaged over 2,000 acres in Lahaina, hundreds more in Kula and Olinda, with the resulting destruction of homes, businesses, infrastructure along with a significant loss in tourism. With over 100 lives lost, the fires led to an estimated $6 billion in economic losses, making it what Gov. Green termed as “the largest natural disaster we’ve ever experienced.”

As Maui continues to rebuild in the aftermath of these devastating wildfires, this settlement marks a significant milestone in providing compensation for the losses suffered by the victims and represents a crucial step towards healing and recovery.