Details of $4 billion Maui fire settlement emerging

(The Center Square) – A week after a tentative $4 billion settlement on claims from the Maui fire was announced, new details are emerging about who will pay what, including how much it could cost the state.

Other defendants in the lawsuit besides the state are the County of Maui, Hawaiian Electric, Kamehameha Schools, West Maui Land Co., Hawaiian Telcom and Spectrum/Charter Communications.

The state is expected to pay about 20%, Gov. Josh Green told KHON in an interview.

“I will tell you it will be partially paid for by the $250 million of insurance that we’ve received from burned state buildings, and I’ll work with the legislature to make sure it doesn’t put a dent in our priorities for housing, affordability for our state, and so on,” Green told the television station. “It’s very important also to know that we’ll be spreading out the payments.”

The Hawaii Legislature must approve the settlement amount.

Jerry Singleton, an attorney at Singleton Schreiber who represents more than 1,900 fire victims, said he anticipated the legislature would approve it.

“Due to the scope of this disaster, the state will have to provide a great deal of assistance to the Maui community regardless of whether or not this deal goes through,” Singleton said in an interview with The Center Square. “Because we believe this deal maximizes the contributions from other defendants, we believe it is in the state’s interest to approve it. Ultimately, however, that is a decision that will have to be made by the legislature and the governor.”

Hawaiian Electric, which was criticized for not turning off electricity when the fires started, said it will pay $1.99 billion, including $75 million previously contributed to the One Ohana Initiative. Singleton said that the amount should be higher.

“However, based on the financial records we have seen, this appears to be the maximum amount that HECO would be able to pay,” Singleton said. “The alternative would be to put HECO into bankruptcy. After reviewing this option with our bankruptcy attorneys and financial experts, we do not believe it would be a better option for the victims because it would take several years before the victims receive compensation and it is unlikely that HECO would be forced to pay more money through a bankruptcy then they are paying now.”

Jack Wong, CEO of Kamehameha Schools, said in a news release its portion would be $872.5 million, paid in installments.

“KS plans to spread settlement payments over time and use its insurance proceeds to minimize program cuts,” Wong said. “In addition, under the MOA, the State will provide support for Native Hawaiian education projects and for KS’ development of its properties to enable KS to generate returns to reduce the impacts of this settlement on Native Hawaiian education.”

The parties signed a term sheet agreeing to the settlement amounts, Singleton said. But for it to become final, two things must happen.

“First, the subrogating insurance claims (i.e., the claims against defendants being brought by the fire victims’ insurers) need to be resolved,” Singleton said. “Second, the parties will have to agree upon a formal settlement agreement that sets forth the details of how these payments will be made.”

If approved, the settlement covers all claims, including wrongful deaths, personal injuries, property losses and income and business losses, Singleton said.

Payouts would begin in mid-2025.