Parties in lawsuits seeking compensation for last year’s wildfires on Maui have reached a $4 billion global settlement, a court document said Friday, nearly a year after the deadliest blaze in the U.S. in more than a century.
The term sheet detailing the agreement is not publicly available, but Liaison attorneys have filed a motion saying the global settlement seeks to resolve all Maui fire claims worth $4.037 billion. The motion asks the judge to order that insurers cannot go after the defendants separately to recover money paid to policyholders.
The settlement comes amid the possibility of bankruptcy of Hawaiian Electric, the power company that some have accused of starting the fire. The federal Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating the Aug. 8, 2023, fire that killed 102 people and destroyed Lahaina’s historic downtown area.
Maui attorney Gilbert Keith-Agarn, who represents victims, including families who lost relatives, said the amount is “extremely low.” But he said the plaintiffs need to consider the deal given Hawaiian Electric’s limited assets and potential bankruptcy.
The agreement is a first step toward getting compensation for fire victims, said Maui attorney Jake Lowenthal, who was selected as one of four liaison officers to coordinate cases. More work needs to be done on how to divide the money.
“We have no illusions that this will lead to overall development of Maui,” Lowenthal told The Associated Press. “We know for a fact that it will not make up for what they’ve lost.”
Thomas Leonard, who lost his Front Street condo in the fire and spent hours behind a wall in the ocean to escape the fire, welcomed the news.
“This gives us something to work with,” he said. “I’m going to need that money to rebuild.”
Hawaiian Electric said the agreement will help restore the company’s financial stability. It said payments will begin after final approval and payments are not expected before the middle of next year.
“Having so many affected parties working together with such commitment and focus to reach a resolution to an extremely complex matter is a powerful demonstration of how Hawaii comes together in times of crisis,” CEO Sheili Kimura said in a statement.
Hawaii Governor Josh Green said the seven defendants will pay $4.037 billion to compensate people who have already filed claims. He called the proposed settlement an agreement in principle and said it will “help our people recover.”
“My priority as governor is to expedite the settlement and avoid lengthy and painful litigation so as to get as many resources as possible to those impacted by the wildfires as quickly as possible,” he said in a statement.
He said that settling such a number of cases in just one year is unprecedented.
“It would be nice if our people didn’t have to wait as long to rebuild their lives as others have had to in many places where similar tragedies have occurred,” Green said. In an interview with the AP on Wednesday, Green said the settlement money would be crucial to Lahaina’s recovery.
More than 600 lawsuits have been filed for the deaths and destruction caused by the fire, which burned thousands of homes and displaced 12,000 people. In the spring, a judge appointed mediators and ordered all parties to participate in settlement talks.
Defendant Maui County said the agreement reflects a shared commitment between both parties to continue to negotiate in good faith for a larger, more comprehensive settlement that would result in an equitable distribution of settlement funds.
The state’s largest landowner, Kamehameha Schools, a charitable trust formerly known as the Bishop Estate, said it has agreed to contribute a portion of the settlement provided a final binding agreement is reached.
Two other defendants, Hawaiian Telcom and West Maui Land Company, did not immediately respond to email messages or phone calls seeking comment.
Spectrum/Charter Communications declined to comment.