In a landmark development, Governor Josh Green, M.D., announced Friday night that a historic $4 billion settlement has been reached to resolve all tort claims arising from the catastrophic wildfires that devastated Maui last year.
The devastating fires on August 8, 2023, have been linked directly to failures by the state’s primary utility provider during a critical windstorm.
At first, Hawaii State Attorney General Anne E. Lopez decided to withhold initial findings from the public regarding the massive Maui wildfires that took place.
This move is purportedly to “protect the integrity” of the ongoing investigation, according to a statement from the Department of the Attorney General. The decision has raised concerns about the transparency of the investigation, as local residents question whether this “independent investigation” will indeed remain impartial.
As investigations revealed, the deadly wildfires were sparked by downed power lines, a finding that directly challenges the Democrats’ narrative linking such disasters to climate change.
The Associated Press reported that people in Maui who drove around a road barricade blocking the lone paved road from Lahaina as fires raged earlier this month survived, while those who obeyed perished in their cars or fled to the nearby ocean.
The government of Maui County swiftly responded by filing a lawsuit against the Hawaii Electric Company and its subsidiaries, alleging negligence in their failure to power down electrical equipment during dangerous weather conditions.
The proposed settlement, which remains subject to final documentation and court approval, involves seven defendants: the state of Hawai‘i, County of Maui, Hawaiian Electric, Kamehameha Schools, West Maui Land Co., Hawaiian Telcom, and Spectrum/Charter Communications.
They have collectively agreed to pay over $4 billion to compensate the approximately 2,200 affected parties who filed lawsuits following the August 2023 wildfires.
Read the press release below:
Today, Governor Josh Green, M.D., announced a historic settlement to resolve all tort claims arising from the Maui wildfires. Less than a year after devastating wildfires on Maui, the seven defendants – state of Hawai‘i, County of Maui, Hawaiian Electric, Kamehameha Schools, West Maui Land Co., Hawaiian Telcom and Spectrum/Charter Communications – undertook significant efforts to find a resolution that addresses the needs and ensures the well-being of plaintiffs, all affected individuals, and their families.
Under the proposed terms of the global settlement agreement, which remains subject to final documentation and court approval, the seven defendants will pay $4.037 billion to provide compensation to all those who have brought claims for compensation arising from the Aug. 8, 2023 windstorms and wildfires on Maui, including the approximately 2,200 affected parties who filed lawsuits. The state of Hawaiʻi would contribute to the settlement in addition to its $65 million contribution to the One ʻOhana Fund.
Governor Green emphasized the complexity and vast considerations involved in the negotiations, stating, “This Global Settlement of over $4 billion will help our people heal. 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 settlement agreement was reached after more than four months of mediation. Civil cases involving deadly and damaging wildfires in other states typically take years to adjudicate, according to attorneys familiar with wildfire litigation. The settlement resolves the approximately 450 lawsuits filed by individuals, businesses, and insurance companies in state and federal courts for fires in Lahaina and Upcountry Maui.
“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. 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,” said Governor Green.
Currently, the proposed settlement is an agreement in principle. 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.
Once a final settlement agreement is signed, it will take effect following judicial review and approval. The contribution to the settlement from the state of Hawaiʻi must be approved by the Hawaiʻi State Legislature. The 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,” Governor Green continued. “Resolving this so quickly shows how Hawai‘i is different, how we come together in times of crisis to heal together as a community.”
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