Maui Wildfire Settlement Results in $4B Payment By Hawaiian Electric, State and Local Governments

The state of Hawaii, Maui County and Hawaiian Electric Industries, are among several defendants that have agreed to pay $4 billion to resolve numerous lawsuits filed in the wake of deadly wildfires that killed more than 100 people last year, and caused widespread property damage across the island.

The Maui wildfires began on August 8, 2023, resulting in death and devastation, sparking wrongful death lawsuits and other litigation by those whose loved ones and homes were caught in the blaze. The fires reportedly started when high winds knocked down power lines, leading to the deadliest wildfire in the U.S. in at least a century.

In a press release issued on Friday, Hawaii Governor Josh Green announced that the state and six other defendants will pay $4.037 billion to resolve 2,200 Maui wildfire lawsuits filed in the wake of the disaster.

“This Global Settlement of over $4 billion will help our people heal,” Governor Green wrote in the press release. “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 Maui wildfire lawsuits accused local and state agencies, utilities and local telecom companies of failing to respond effectively to combat the fires. Plaintiffs accused Hawaiian Electric of failing to shut down power lines in a timely fashion, and claimed that local governments took no actions to curtail the risks, even after similar problems led to wildfires in the same region in 2018.

The defendants joining in the settlement in principle include Hawaiian Electric and its parent company, Hawaiian Electric Industries (HEI), the State of Hawaii, the County of Maui, Kamehameha Schools, West Maui Land Co., Hawaiian Telcom and Spectrum/Charter Communications.

In its own press release, Hawaiian Electric announced it was contributing $1.99 billion to the Maui wildfire settlement payouts, but said the deal is not an admission of guilt.

“Achieving this resolution will allow all parties to move forward without the added challenges and divisiveness of the litigation process,” HEI CEO Shelee Kimura said in the company’s statement. “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 specific details of the global settlement have not yet been released, beyond the total price tag and that the settlement, if approved by a judge, would resolve all Maui wildfire litigation.

Governor Green indicated the parties hope to receive final approval for the proposed settlement and begin issuing payments by mid-2025.