$4 Billion Settlement for Hawaii Wildfire Victims Faces Uncertainty as Unconventional Trial Begins

HONOLULU—Approximately a year after the deadliest wildfire in the U.S. in a century devastated Lahaina in 2023, Hawaii Governor Josh Green proclaimed a $4 billion settlement, emphasizing the quick resolution as a means to “avoid prolonged and painful lawsuits.”

However, five months later, an unconventional trial beginning Wednesday will explore challenging issues regarding the survivors’ losses as a judge determines the allocation of the settlement. Some victims will testify in person, while others have provided pre-recorded statements, sharing their ongoing pain heightened by the recent devastation in Los Angeles.

This trial will not assign blame. The parties held responsible for the wildfire, including the state, power utility Hawaiian Electric, and significant landowners, have already accepted the settlement figure.

The core issue is how to distribute the funds among different groups of plaintiffs, such as individuals who launched personal lawsuits after losing loved ones, homes, or businesses, and other victims included in class-action lawsuits, like tourists who had to cancel trips to Maui due to the disaster.

As the two groups of lawyers could not reach an agreement, it has fallen to Judge Peter Cahill to decide how the $4 billion should be divided.

“A class action involves everyone enduring the same loss,” stated Damon Valverde, whose sunglasses business in Lahaina was destroyed. “I’ve experienced a significantly greater loss than some, while others have lost even more than I.”

Valverde is not expected to testify as attention will likely center on victims who have lost family members.

This includes Kevin Baclig, whose wife, father-in-law, mother-in-law, and brother-in-law were among the 102 confirmed fatalities.

Baclig stated in a declaration that if he were to testify, he would recount his harrowing three-day search for them, moving from hotel to hotel and shelter to shelter. “I held onto the fragile hope that perhaps they had escaped the island and were safe,” he recounted.

After a month and a half, reality set in. He traveled to the Philippines to collect DNA samples from his wife’s close family members there. The results matched remains recovered from the fire, leading him to ultimately bring urns containing their remains back to the Philippines.

“The loss has plunged me into a deep, unending sorrow,” he expressed. “Words cannot capture the void I feel or the burden I carry daily.”

The class action encompasses individuals who lost homes and businesses, as well as tourists affected by delayed or canceled trips. According to Jacob Lowenthal, an attorney for victims like Baclig who have pursued individual lawsuits, only a minimal portion of the settlement should be allocated to this group.

“The losses claimed by the class are far too insignificant compared to what we have endured,” Lowenthal stated.

The attorneys representing the class have not responded to inquiries from The Associated Press. In their trial brief, they contested the notion that everyone deserving of compensation has already pursued legal action. Many individuals have been reluctant to hire lawyers due to the disruption caused by the fire, “distrust in aggressive attorney marketing, and a desire to observe how the process unfolds first,” the brief indicated.

Further complicating the situation are ongoing considerations by the state Supreme Court regarding whether insurers can sue the defendants for reimbursement of the over $2 billion they have already paid in relation to the fire, or if their share must come from the $4 billion settlement.

If the court permits insurers to sue independently, it could jeopardize the entire agreement. Preventing insurers from pursuing the defendants is a critical condition of the settlement, and allowing such actions could deplete the funds available for fire victims and prolong legal disputes, according to the lawyers for the individual plaintiffs.

By Jennifer Sinco Kelleher