$4B Global Settlement reached toward resolution of wildfire lawsuits; Agreement is subject to court approval

Today, following months of good faith negotiations, the County signed a Term Sheet with key participants in the lawsuits arising out of the tragic Maui wildfires of Aug. 8, 2023. The agreement outlines the framework for a global settlement that would resolve claims and disputes related to the fires that devastated Lahaina and other communities on the island. 

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 was a result of a mediation process that extended over several months and was overseen by Keith Hunter and retired judges Louis Meisinger and Daniel Buckley– all mediators appointed by the Court overseeing most of the Maui wildfire lawsuits.

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 Green.

Mayor Richard T. Bissen, Jr. emphasized that “We recognize that this settlement is critical to our survivors’ ability to move forward on a path of healing from this tragedy and sincerely appreciate the hard work and willingness of all involved in finding their way to an expedited agreement.” 

In light of the recent settlement, the County will continue working with wildfire victims and their representatives to provide services and resources throughout the recovery period.

“The agreement is an important first step and represents the commitment of the signatories towards reaching a final settlement that would provide compensation to those impacted by the tragic fires,” said County Corporation Counsel Victoria Takayesu.  “The County remains steadfast in its commitment to rebuild Lahaina and support its community.” 

The agreement represents a shared commitment between Maui County and participating parties to continue negotiations in good faith towards a larger, detailed global resolution that would seek to equitably distribute more than $4 billion to those impacted by the fires. The settlement amount was the result of a “Mediators’ Proposal” that reflected the mediators’ view of the maximum amount that the parties could fairly and practicably contribute based on the facts of the case. 

In the spirit of cooperation, the parties also agreed to jointly request that the Court put the litigation largely on hold except for legal motions that would assist the parties’ efforts to reach a final resolution for the victims.

Kamehameha Schools issued a statement on the global settlement of the Maui wildfire lawsuits saying:

“Kamehameha Schools is deeply committed to supporting the healing of Lahaina families affected by the devastating fires of August 2023 and to aiding in the restoration of the Lahaina community. We have been actively involved in mediation efforts to address the legal claims arising from this tragedy and have agreed to participate in a global settlement to resolve all claims related to those fires. Seeking closure and healing, Kamehameha Schools has agreed to contribute, over time, a portion of the aggregate settlement amount of about $4 billion, assuming a final binding settlement agreement can be reached, and Kamehameha Schools receives approvals from the State Probate Court, the State Attorney General, and the Internal Revenue Service. Our plans to request such approvals will occur following ongoing discussions with the State and Maui County focusing on restoring Lahaina in keeping with the community’s vision for its renewal.”

Hawaiian Electric and its parent company, Hawaiian Electric Industries (HEI), the State of Hawaiʻi, the County of Maui, Kamehameha Schools, West Maui Land Co., Hawaiian Telcom and Spectrum/Charter Communications have agreed on the terms of the proposed settlement with the lead attorneys for individual and class plaintiffs.

Under the proposed terms, which remain subject to final documentation and court approval and do not include any admission of liability, the defendants would collectively pay over $4 billion to resolve all tort claims arising from the Aug. 8, 2023 windstorms and wildfires on Maui. The settlement also would resolve all claims among the defendants. HEI and Hawaiian Electric’s contribution is a total of $1.99 billion (pre-tax) and includes the multi-million contribution previously made for the One ‘Ohana Initiative.

“Achieving this resolution will allow all parties to move forward without the added challenges and divisiveness of the litigation process. 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,” said Shelee Kimura, president and CEO of Hawaiian Electric. “For the many affected parties to work with such commitment and focus to reach resolution in a uniquely complex case is a powerful demonstration of how Hawaiʻi comes together in times of crisis.”

“While the settlement will close one chapter in the Maui recovery, the story will continue for many years and generations,” Kimura continued. “Hawaiian Electric’s commitment to our communities is unwavering, and we are resolved to be here for Lahaina for as long as it takes. Our objective is to make sure a tragedy like this never happens again and we mahalo many partners who are working with us shoulder to shoulder to ensure Hawai‘i’s communities are safe and resilient.”

For Hawaiian Electric, this proposed settlement agreement will bring greater certainty for the company, enabling it to begin to reestablish the financial stability needed to invest in a sustainable and resilient future for Maui and all Hawaiʻi.

The settlement terms were reached after four months of mediation between the defendants and attorneys representing plaintiffs from Lahaina and Upcountry Maui.

At this point, the proposed settlement is an agreement in principle between the defendants and attorneys representing individual and class plaintiffs. The agreement is conditioned on a resolution of the claims of the insurance companies that have paid claims for property loss and other damages, with no additional payments from 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 be made no earlier than 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,” Green said. “Resolving this so quickly shows how Hawai‘i is different, how we come together in times of crisis to heal together as a community.”