More than 10,000 plaintiffs — including homeowners, businesses and other individuals — will receive a collective $4 billion settlement following a devastating wildfire on the Hawaiian island of Maui that killed 102 people and destroyed the historic city of Lahaina.
The settlement was reached by the plaintiffs and seven defendants: the State of Hawaii, the County of Maui, Hawaiian Electric, Kamehameha Schools, West Maui Land Co., Hawaiian Telcom and Spectrum/Charter Communications.
The settlement, reported on Friday by the The New York Times and announced by the governor’s office based on a state court filing, covers less than half of the estimated $12 billion total cost of the wildfire and remains subject to court approval. Months of mediation between fire victims, insurers, and large private landowners and utility providers have been aiming to resolve the more than 600 lawsuits stemming from the fire.
More than 3,000 homes and other buildings were destroyed in the fire that took place in August 2023. Gov. Josh Green (D) had been pushing for a single “global” agreement to quickly process compensatory payments instead of waiting months or years for a settlement. State officials were also hoping to minimize the hefty financial impact on both Maui County and Hawaiian Electric. A larger settlement could have bankrupted the utility provider.
“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,” Green said in a statement. “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.”
The state will also be contributing to the settlement amount, according to the governor’s office. That contribution is subject to approval by the state Legislature and payments in the settlement are expected to begin in mid-2025.
Green lauded the pace at which the settlement was reached.
“This was an extraordinary and unprecedented effort by many people to address the tragic impacts of the wildfires in less than a year,” Green added. “Resolving this so quickly shows how Hawai‘i is different, how we come together in times of crisis to heal together as a community.”
The impacts of the devastation continue to be felt. Recently, the U.S. Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) extended a moratorium on foreclosures for the third time since August 2023. HUD also released new resources to the state in February.
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