Hawaii announces $4 bn settlement in wildfire lawsuits

A $4 billion settlement has been reached to end thousands of lawsuits filed in the wake of devastating wildfires on Maui nearly one year ago, the governor of Hawaii announced Friday.

Defendants including the state of Hawaii, Maui County, and Hawaiian Electric utility will pay the money to compensate victims – including about 2,200 who filed lawsuits – for losses from deadly wildfires on the island of Maui.

“This Global Settlement of over $4 billion will help our people heal,” Hawaii Governor Josh Green said in a release.

“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 settlement was reached after four months of mediation, but must be approved by a judge to become final.

It also hinges on resolving claims by insurance companies that have paid out for property loss or other damages.

The fire that raged on August 8 of last year was the deadliest wildfire the United States had seen for more than a century.

It burned through around 2,000 acres (800 hectares) and laid waste to the historic town of Lahaina, a former Hawaiian royal seat and a thriving tourist hub.

Fanned by powerful winds, the flames moved so quickly that many residents were caught unaware, only learning there was a fire when they saw it for themselves.

Some abandoned their cars as they tried to flee the town and sought refuge in the ocean, where they cowered for hours as their homes were incinerated.

Thousands of people were made homeless, with recovery expected to take years.

“Overall, the total scope of the recovery, which includes past insurance claims, county, federal and state support, will approach $12 billion,” Green said.

Maui County last year filed a lawsuit against Hawaii’s electricity company over the fire, alleging the destruction could have been avoided if power lines had been shut off.

There was critical focus on the power provider in the wake of the blaze, with videos apparently showing downed cables setting light to vegetation in the hours before tragedy struck.

The lawsuit says there was plenty of warning of strong winds from a nearby hurricane, but Hawaiian Electric and its subsidiaries negligently kept power lines live.

Electric companies in California, which is prone to wildfires, routinely shut down power lines in strong storms or winds to avoid fallen power lines causing fires.

Hawaii Electric Company is to pay the largest share of the proposed settlement, some $2 billion, according to a New York Times report. (BSS/AFP)