Hawaii announces $4 billion global settlement over Maui wildfires

HONOLULU (CN) — Victims of what has been described as the worst natural disaster in the state of Hawaii will now receive over $4 billion to resolve hundreds of lawsuits filed in the wake of wildfires that destroyed the town of Lahaina on Maui and killed over 100 people.

“This was an extraordinary and unprecedented effort by many people to address the tragic impacts of the wildfires in less than a year,” Hawaii Governor Josh Green said in a Friday statement. “Resolving this so quickly shows how Hawaii is different, how we come together in times of crisis to heal together as a community.”

The lawsuits mostly targeted the state of Hawaii, County of Maui, Hawaiian Electric, Kamehameha Schools, West Maui Land Co., Hawaiian Telcom and Spectrum/Charter Communications — defendants who now are on the hook for $4.037 billion to be paid out to the roughly 2,200 parties who filed suit.

The announcement of the proposed settlement comes just one week before the one-year anniversary of the Aug. 8, 2023 wildfires. Green initially hinted that mainland parties were holding up negotiations in July.

“This global settlement of over $4 billion will help our people heal," 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.”

In the year since the fires, Maui recovery became a major focus on the islands, with Green approving $385 million in May to help support the thousands of Lahaina residents who remain displaced. The state will also contribute to the settlement, adding to the $65 million it previously committed to the One 'Ohana Fund compensation program.

While no official reason for the origin of the fires has been determined, Hawaiian Electric has weathered a majority of the blame, with many of the approximately 450 Maui wildfire lawsuits in state and federal courts filed by individuals, businesses and insurance companies attributing the blaze to the electric utility's downed powerlines.

Plaintiffs in the cases say Category 4 winds from Hurricane Dora — which passed just under the islands in August 2023 — knocked over the power lines, which then sparked the blazes in Lahaina and Upcountry Maui, where land owned by the other defendants was filled with drought-dried nonnative vegetation. The winds then continued to whip the wildfires up into a fast-moving inferno that ultimately left historic Lahaina town in ruins.

The state and county of Maui did not escape criticism — emergency sirens reportedly did not sound that day and emergency alerts weren't pushed through as communication lines were compromised in the fire.

The delayed response prompted investigation by the Hawaii Attorney General's office and the U.S. Department of Justice’s Bureau of Alcohol, Tobacco, Firearms and Explosives. The ATF said in April it was hoping to have its investigation into the origin of the fires completed by the one-year anniversary.

According to the governor's office, finalizing the settlement is conditional on insurance company claims that have already been paid out. Once the agreement is signed, payments could begin in mid-2025, as Hawaii's proposed contribution must pass the Legislature.

"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,” Green said.

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