Maui wildfire plaintiffs reach $5.3 billion settlement as anniversary nears
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The charred remains of a neighborhood in Lahaina, on the Hawaiian island of Maui, on Aug 16, 2023.
PHOTO: NYTIMES
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HAWAII - Nearly a year after a ferocious wildfire on Maui killed 102 people
The proposed agreement was filed late on Aug 2 in a Maui-based state court, six days before the anniversary of the disaster. Fire victims and insurers have spent months in court-ordered mediation with the state, Maui County, large private landowners and utilities within the fire zone to resolve more than 600 lawsuits brought in state and federal courts by survivors of the catastrophe.
The settlement, which remains subject to court approval, will cover less than half of the overall cost of the disaster – estimated at nearly US$12 billion. More than 3,000 homes and other structures were damaged or destroyed, and thousands of residents were killed, injured or displaced.
Hawaii Governor Josh Green had pushed for a single global agreement among all the parties to litigation to swiftly compensate fire victims, rather than extending negotiations for years without payment.
State officials had also hoped to ward off a potentially devastating financial hit to Maui County and the bankruptcy of Hawaiian Electric, which provides electricity for more than nine in 10 of the state’s residents on Oahu, Maui, Molokai, Lanai and Hawaii Island.
“Settling a matter like this within a year is unprecedented,” Mr Green said on Aug 2.
Hawaiian Electric crews working to repair damaged power lines in Lahaina, on the Hawaiian island of Maui, on Aug 16, 2023.
PHOTO: NYTIMES
Under the proposed terms, which do not include admission of liability, the utility is expected to pay less than half of the US$4.037 billion settlement, US$1.99 billion, a considerable amount but less than the potential US$4.9 billion liability that the investment research firm Capstone estimated last year would most likely bankrupt the company.
“Achieving this resolution will allow all parties to move forward without the added challenges and divisiveness of the litigation process,” said chief executive and president of Hawaiian Electric Shelee Kimura.
“It will allow all of us to work together more cohesively and effectively to support the people of Lahaina and Maui to create the future they want to see emerge from this tragedy.” NYTIMES
