One year after Maui fires, Hawaii tentatively settles lawsuits for $4 billion

(The Center Square) - Seven Hawaii defendants in lawsuits related to the August 2023 Maui fires have reached a tentative $4 billion settlement that would also require state funds, according to Gov. Josh Green.

The state of Hawaii, County of Maui, Hawaiian Electric, Kamehameha Schools, West Maui Land Co., Hawaiian Telcom and Spectrum/Charter Communications are part of the agreement in principle that covers lawsuits filed by 2,200 Maui residents, according to Green's office.

The governor did not provide details about how much each defendant would pay. Hawaiian Electric said its share is "$1.99 billion (pre-tax) and includes the $75 million previously contributed 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.

The One Ohana Initiative was established to assist Maui fire victims. The other six defendants in the lawsuits also contributed to the fund. The state of Hawaii contributed $65 million, Kamehameha Schools $17.5M million, Maui County $10 million and Charter/Spectrum, Hawaiian Telcom and West Maui Land Company each contributed $2.5 million.

The Hawaii State Legislature will have to approve the settlement amount from state funds, according to Green. He said the settlement would help 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," Green said. "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 is subject to a resolution on insurance claims already paid and that the defendants will make no additional payments, according to Green's office.

Payments from the settlement are expected to begin in mid-2025.

The Maui fires killed 102 people and displaced thousands of residents. The cause of the fires remains under investigation.