The Maui wildfire victims have reached a $4 billion settlement agreement, court filings show.
Liaison attorneys filed a motion saying the settlement looks to resolve all of the claims from last year’s devastating Maui fire.
It asks the judge to order that insurers can’t separately go after defendants who receive money, The Associated Press reported.
The federal Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating the Aug. 8, 2023 fire in Maui that killed 102 people and destroyed the historic tourist town of Lahaina.
The settlement was reached as there are concerns that Hawaiian Electric, the power company that people blame for starting the fire, could be going bankrupt.
Gilbert Keith-Agaran, an attorney who represents fire victims, said the amount reached in the settlement was “woefully short” but the plaintiffs needed to consider the electric company’s limited assets, the AP reported.
More work needs to be done on how to divide up the total amount, but the agreement was the first step in getting victims of the fire compensated, said Jake Lowenthawl, a Maui attorney.
“We’re under no illusions that this is going to make Maui whole,” he told the AP. “We know for a fact that it’s not going to make up for what they lost.”
In a statement, Hawaiian Electric said the money will reestablish the company’s financial stability. Payments are expected to begin by the middle of 2024, it said.
“For the many affected parties to work with such commitment and focus to reach resolution in a uniquely complex case is a powerful demonstration of how Hawaii comes together in times of crisis,” CEO Sheelee Kimura said in a statement.
Hawaii Gov. Josh Green (D) called the settlement historic in a statement online after hinting at the settlement earlier this week.
“This Global Settlement of over $4 billion will help our people heal. My priority as Governor was to expedite those affected by the wildfires as quickly as possible,” he said. “Settling a matter like this within a year in 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 strategies.”
Many lawsuits have been filed in the aftermath of the fire. One lawsuit argues that the state’s electric utility contributed to the devastating wildfire. A Hawaiian couple argues that Wildfire Management Organization issued a plan in 2014 that pointed to Lahaina’s vulnerabilities.
The father of a woman killed in the fires has sued the local government of Maui, the utility company and large landowners, arguing they are responsible for the disaster.
