Hawaii Wildfire Victims Reach $4B Settlement

Lawyers representing victims of the devastating 2023 Hawaii wildfire have reached a last-minute agreement, averting a trial that was set to begin on Wednesday. The agreement, announced by Judge Peter Cahill, will see the distribution of a $4 billion settlement among the victims and survivors of the deadly inferno that ravaged Lahaina, killing over 100 people and causing an estimated $5.5 billion in damages.

The settlement agreement was reached after lawyers met in private with Judge Cahill on Tuesday, sparing victims and survivors the ordeal of testifying in court and reliving the traumatic events. "Some folks I'm sure will be disappointed, because in their minds this was their time to share their story," said Jacob Lowenthal, one of the attorneys representing individual plaintiffs. “Other folks are going to be relieved because they don't have to go in and testify.”

One of the individual plaintiffs, Kevin Baclig, who lost his wife, father-in-law, mother-in-law, and brother-in-law in the fire, expressed the profound pain and emptiness he feels. "The loss has left me in profound, unrelenting pain," he said. “There are no words to describe the emptiness I feel or the weight I carry every day.”

The $4 billion settlement was announced by Hawaii Gov. Josh Green about a year after the wildfire, with the aim of avoiding "protracted and painful lawsuits." The settlement involves the state, power utility Hawaiian Electric, large landowners, and others.

The trial was set to determine the percentage split between two groups of plaintiffs: those who filed individual lawsuits after losing family members, homes, or businesses, and those covered by class-action lawsuits, including tourists who canceled trips to Maui due to the blaze. Attorneys for the class had argued that not all victims had filed claims, citing the fire's disruption to life and distrust in attorney advertising.

Separately, the state Supreme Court is considering whether insurers can sue the defendants for reimbursement for over $2 billion in fire claims, or whether their share must come from the $4 billion settlement. Oral arguments are scheduled for February 6.