HONOLULU — Lawyers representing those affected by the recent devastating wildfire in Hawaii have successfully negotiated a last-minute agreement that prevents a trial from commencing over the distribution of a $4 billion settlement. This settlement will spare victims and survivors the distress of testifying in court, where they would have had to recount the tragic details of the Lahaina fire, which resulted in over 100 fatalities and caused an estimated $5.5 billion in damages.
The deal was reached just before the trial was set to start on Wednesday morning, following private discussions between the legal teams and Judge Peter Cahill. This resolution allows the parties involved to submit formal documentation of the agreement within a week.
Some victims had been prepared to take the stand, while others had submitted recorded testimonies reflecting the emotional toll exacerbated by recent devastation in Los Angeles. Jacob Lowenthal, a lawyer representing individual plaintiffs, noted that reactions to the agreement might vary, saying, “Some folks I’m sure will be disappointed, because in their minds this was their time to share their story. Other folks are going to be relieved because they don’t have to go in and testify.”
One plaintiff, Kevin Baclig, faced profound personal loss, having lost multiple family members in the fire. In a statement, he described the agonizing search for his loved ones, enduring a heart-wrenching three-day ordeal as he sought them across various shelters and hotels. He expressed a desperate hope that perhaps they had escaped the island safely.
Sadly, after a month and a half without answers, Baclig learned the heartbreaking truth; he traveled to the Philippines to collect DNA samples from family members of his late wife, which tragically matched remains recovered from the site of the fire. He later returned with their ashes, highlighting the deep anguish: “The loss has left me in profound, unrelenting pain. 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 Governor Josh Green approximately a year following the catastrophic disaster in Lahaina, marking it as the deadliest wildfire in the U.S. in a century. During the announcement, Governor Green emphasized the importance of resolving these issues quickly to avert prolonged and painful legal battles.
The trial’s primary focus would have been to determine how to allocate funds between different groups of claimants. These include individuals who filed personal lawsuits after losing family, homes, or businesses, and victims included in class-action suits, such as tourists who had to cancel their trips to Maui amid the crisis. Legal representatives previously indicated that only a small fraction of the settlement would be directed toward tourists impacted by the wildfire.
According to Lowenthal, the losses experienced by the class-action group are minuscule compared to the vast losses suffered by individual claimants. He stated, “The categories of losses that the class is claiming are just grossly insignificant compared to our losses.” Responses from attorneys representing the class regarding the halted trial have not yet been disclosed.
Furthermore, the state Supreme Court is reviewing whether insurance companies are entitled to pursue the defendants for recovery of over $2 billion in claims paid out due to the fire damage, or if those costs must be absorbed within the $4 billion settlement. Oral arguments for this case are scheduled for February 6. Lowenthal mentioned, “That is the last big piece that needs to be decided before the global settlement can move forward.”
