Honolulu, Hawaii – A landmark $4 billion agreement has been reached to settle all loss claims related to the devastating wildfire that swept through Maui nearly a year ago. This agreement marks the largest mass tort litigation in Hawaii’s history, but many steps remain before its completion, including judicial approval.
The settlement aims to resolve claims from the catastrophic event on August 8, where fierce winds caused power lines to fall, igniting a blaze in Lahaina that claimed 102 lives and obliterated much of the town. The inferno, fueled by dry vegetation, destroyed approximately 3,500 homes and numerous businesses, resulting in thousands of lawsuits.
Hawaiian Electric, which faces the majority of the blame for the fires, has agreed to pay $1.99 billion in four annual installments as part of the settlement. While the settlement is chiefly designed to encompass all existing and prospective claims regarding the Maui fire, the precise division of the funds among the affected parties, including individuals and businesses, remains complex and pending.
Governor Josh Green highlighted the extensive impact, noting that currently, around 2,200 plaintiffs are involved in pending lawsuits. This number is merely a fraction of the estimated 10,000 affected entities represented by various law firms. The intricacies of the case reflect the wide-ranging damage, from physical injuries and loss of life to substantial property and economic losses.
Legal proceedings have witnessed significant developments, with Maui’s 2nd Circuit Court receiving over 615 lawsuits to date. The legal action has implicated several entities in addition to Hawaiian Electric, including Spectrum Oceanic LLC and Hawaiian Telcom, as well as landowners such as the state, Maui County, Kamehameha Schools, and West Maui Land Co.
Maui County itself has initiated legal action against Hawaiian Electric, while some plaintiffs have also accused the county and state governments of failing to adequately warn residents as the fire expanded.
The litigation process has been streamlined in part by Chief Judge Peter Cahill of the 2nd Circuit, who approved a special proceeding to coordinate common procedural aspects among the myriad cases. This includes a unified approach to document discovery and depositions, though it stops short of merging the cases into a single lawsuit.
Within this framework, four bellwether cases were selected for trial, which are representative of the broader issues at hand and involve various plaintiffs from homeowners and renters to business owners and victims’ relatives. These trials, set for November 18, will likely influence the outcome of other claims.
Efforts to mediate and manage the lawsuit swarm were led by three mediators, who helped broker the proposed $4.037 billion settlement following several months of negotiations. This mediated settlement reflects their assessment of a fair contribution by the defendants, considering the facts and potential insurance limitations.
While the proposed settlement appears to near a resolution, its execution awaits the judge’s approval, and the distribution among plaintiffs is still being formulated. Most notably, how lawyers will be compensated and when plaintiffs might receive funds, with the earliest distributions projected for mid-2025.
Despite these efforts to conclude the litigations swiftly, this settlement represents but the beginning of a comprehensive resolution process aiming to address the vast needs of those affected by one of the deadliest wildfires in U.S. history.
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