HONOLULU (AP) 鈥� The parties in lawsuits seeking damages for last year鈥檚 Maui wildfires have reached a a court filing said Friday, nearly one year after the deadliest U.S. wildfire in more than a century.
The term sheet with details of the settlement is not publicly available, but the liaison attorneys filed a motion saying the global settlement seeks to resolve all Maui fire claims for $4.037 billion. The motion asks the judge to order that insurers can鈥檛 separately go after the defendants to recoup money paid to policyholders.
The settlement was reached amid fears that Hawaiian Electric, the power company that for sparking the blaze, could be on the brink of bankruptcy. The federal Bureau of Alcohol, Tobacco, Firearms and Explosives is the Aug. 8, 2023 fires that killed 102 people and destroyed the historic downtown area of Lahaina.
Gilbert Keith-Agaran, a Maui attorney who represents victims, including families who lost relatives, said the amount was 鈥渨oefully short.鈥� But he said it was a deal plaintiffs needed to consider given Hawaiian Electric鈥檚 limited assets and potential bankruptcy.
The agreement was the first step toward getting fire victims compensation, said Jake Lowenthal, a Maui attorney selected as one of four liaisons for the coordination of the cases. More work needs to be done on how to divvy up the amount.
鈥淲e鈥檙e under no illusions that this is going to make Maui whole,鈥� Lowenthal told The Associated Press. 鈥淲e know for a fact that it鈥檚 not going to make up for what they lost.鈥�
Thomas Leonard, who lost his Front Street condo in the fire and spent hours in the ocean behind a seawall hiding from the flames, welcomed the news.
鈥淚t gives us something to work with," he said. "I鈥檓 going to need that money to rebuild.鈥�
Hawaiian Electric said the settlement will help reestablish the company鈥檚 financial stability. Payments would begin after final approval and were expected no earlier than the middle of next year, it said.
鈥淔or 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,鈥� CEO Sheelee Kimura said in a statement.
The seven defendants will pay the $4.037 billion to compensate those who already have brought claims, Hawaii Gov. Josh Green said. He called the proposed settlement an agreement in principle and said it would "help our people heal.鈥�
鈥淢y 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,鈥� he said in a statement.
He said it was unprecedented to settle lawsuits like this in only one year.
鈥淚t will be good that our people don鈥檛 have to wait to rebuild their lives as long as others have in many places that have suffered similar tragedies,鈥� Green said. On Wednesday, Green told the AP in the settlement money would be important for Lahaina's recovery.
More than 600 lawsuits have been filed over the deaths and destruction caused by the fires, which burned thousands of homes and displaced 12,000 people. In the spring, a judge appointed mediators and ordered all parties to participate in settlement talks.
Defendant Maui County said the agreement represents a shared commitment between the parties to continue negotiating in good faith towards a larger, detailed resolution that would seek to equitably distribute the settlement money.
The state鈥檚 largest landowner, Kamehameha Schools, a charitable trust formerly known as the Bishop Estate, said it鈥檚 agreed to contribute a portion of the settlement assuming a final binding agreement is reached.
Two other defendants, Hawaiian Telcom and West Maui Land Co., did not immediately respond to email messages or phone calls seeking comment.
Spectrum/Charter Communications declined to comment.
Audrey Mcavoy And Jennifer Sinco Kelleher, The Associated Press
