Hawaii Announces $4 Billion Combined Settlement for Deadly Maui Fires

The hall of historic Waiola Church in Lahaina and nearby Lahaina Hongwanji Mission are engulfed in flames along Wainee Street in Lahaina, Hawaii, on Aug. 8, 2023. (Matthew Thayer/The Maui News via AP)

A consortium of Hawaii businesses and state entities have agreed in principle to compensate and settle with parties affected by the wildfires that ravaged the island of Maui a year ago.

The seven defendants—the state of Hawaii, the county of Maui, Hawaiian Electric, Kamehameha Schools, West Maui Land Co., Hawaiian Telcom, and Spectrum/Charter Communications—will pay $4 billion as compensation to homeowners, businesses, and insurance companies that were affected by the Aug. 8, 2023, windstorms and wildfires, according to an Aug. 2 statement from Hawaii Gov. Josh Green.

Altogether, 2,200 parties filed about 450 lawsuits following the disastrous incident, which resulted in more than 100 deaths and billions in damages.

“This Global Settlement of over $4 billion will help our people heal,” Green said. “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.”

Hawaiian Electric, which covers more than 95 percent of the state, said it will provide a total of $1.99 billion as part of the settlement, according to a company statement published on Aug. 2.

Following the aftermath of the fires, Maui County filed a civil action against Hawaiian Electric and its affiliates, alleging that the utility company dismissed “red flag” warnings from the National Weather Service to shut down power lines. The aging infrastructure combined with high winds from Hurricane Dora ultimately led to the spread of the fires.

Hawaiian Electric denied claims in the lawsuit at the time, and has offered no admission of liability in the latest proposed settlement.

“Achieving this resolution will allow all parties to move forward without the added challenges and divisiveness of the litigation process,” said Shelee Kimura, president and CEO of Hawaiian Electric. “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.”

The blame also fell on local administration as warning sirens failed to sound during the incident, meaning people weren’t alerted to the danger. Hawaii’s public safety warning system is considered one of the largest in the world with 400 sirens positioned across the island chain to alert people to various natural disasters and other threats.

More Than Four Months of Mediation

The governor said that the agreement was arrived at after more than four months of mediation, with the latest settlement conditional on the resolution of insurance company claims and judicial approval.

“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,” Green said.

“Overall, the total scope of the recovery, which includes past insurance claims, county, federal and state support, will approach $12 billion.”

After receiving final approval, the payments are expected to be disbursed starting mid-2025.

More than 70 percent of people directly affected by the fire are suffering from economic insecurities and cutting back on groceries and food, according to a June survey by the Hawaii State Rural Health Association. The survey included 2,097 residents of Maui County and 1,105 fire-impacted individuals.

Many people, including qualified health professionals, left Maui following the disaster, rendering the region more vulnerable.

The survey said, “The vast majority of those directly impacted are still living in ‘temporary housing,’ and most are recovering from the upheavals of having to move multiple times since the fires.”