$4 billion settlement announced nearly a year after deadly Hawaii wildfires

HONOLULU, Hawaii – The State of Hawaii announced it has entered into a $4 billion settlement to resolve hundreds of lawsuits following the historic Maui wildfires of August 2023.

Under the proposed agreement, entities such as the State of Hawaii, County of Maui, Hawaiian Electric, Kamehameha Schools, West Maui Land Co., Hawaiian Telcom and Spectrum/Charter Communications would pay $4.037 billion to approximately 2,200 parties.

"This was an extraordinary and unprecedented effort by many people to address the tragic impacts of the wildfires in less than a year," Gov. Josh Green, M.D., said in a statement. "Resolving this so quickly shows how Hawai’i is different, how we come together in times of crisis to heal together as a community."

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Last year’s wind-driven wildfires were courtesy of a significant pressure gradient, with a ridge of high pressure to the north of the islands and a major hurricane named Dora to the south.

The coastal town of Lahaina was the focal point of the wind-driven fires that resulted in the loss of at least 102 lives and the destruction of more than 2,000 structures.

The catastrophe became known as the deadliest modern-day fire in the U.S. and the worst disaster ever to happen in the nation’s 50th state.

Since the deadly inferno, reports released by the Hawaii attorney general and local firefighters have highlighted the complexity of the event, but none have stated who was responsible for the out-of-control fire.

The Bureau of Alcohol, Tobacco, Firearms and Explosives was investigating the source of the disaster but has not released any results in its nearly year-long review.

Initial estimates from the governor’s office of the damage to infrastructure and tourism put losses around $6 billion, but after all claims are paid, the total is expected to push closer to $12 billion.

"This Global Settlement of over $4 billion will help our people heal," Green stated. "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."

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Despite the news of the proposed agreement, payments to parties are not expected to start anytime soon.

According to the state, the agreement will require judicial approval, which will then go to Hawaii’s legislature.

The earliest payments could begin is mid-2025, according to the governor’s office.

"Achieving this resolution will allow all parties to move forward without the added challenges and divisiveness of the litigation process," Shelee Kimura, president and CEO of Hawaiian Electric said in a 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. 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."