Hawaii wildfires: $4B settlement for victims is in legal limbo as unusual trial starts

When Hawaii Governor Josh Green announced a $4 billion settlement approximately one year following the deadliest wildfire in Lahaina in 2023, he emphasized the quick resolution to prevent prolonged legal battles.

Nonetheless, five months later, an uncommon trial beginning on Wednesday will address complex issues regarding the losses suffered by survivors as a judge determines how to distribute the settlement. Some victims will testify in court, while others have provided pre-recorded statements, recounting the agony that has been reignited by the recent devastation in Los Angeles.

The trial will not assign blame. Various defendants held responsible for the fire, such as the state, Hawaiian Electric (the power utility), and prominent landowners, have already consented to the settlement sum.

Wildfire wreckage is shown in Lahaina, Hawaii, Aug. 10, 2023.

Wildfire wreckage is shown in Lahaina, Hawaii, Aug. 10, 2023.

AP Photo/Rick Bowmer, File

At issue is how much money various groups of plaintiffs might receive, including some who filed individual lawsuits after losing their family members, homes or businesses, and other victims covered by class-action lawsuits, including tourists who simply had to cancel trips to Maui following the inferno.

Lawyers for the two groups failed to come to an agreement, leaving it up to Judge Peter Cahill to determine how the $4 billion should be shared.

“A class action is everybody suffering the same loss,” said Damon Valverde, whose Lahaina sunglasses company burned. “And I suffered quite a bit more than others, and others suffered quite a bit more than me.”

Valverde isn’t expected to testify; the focus should be on victims who lost family members, he said.

Those include Kevin Baclig, whose wife, father-in-law, mother-in-law and brother-in-law were among the 102 people known to have died.

Baclig said in a declaration that if called to testify he would describe how for three agonizing days he searched for them – from hotel to hotel, shelter to shelter. “I clung to the fragile hope that maybe they had made it off the island, that they were safe,” he said.

A month and a half went by and the grim reality set in. He went to the Philippines to gather DNA samples from his wife’s close relatives there. The samples matched remains found in the fire. He eventually carried urns holding their remains back to the Philippines.

“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 class action includes some people who lost homes and businesses, but also tourists whose trips were delayed or canceled. Only a nominal portion of the settlement should go toward that group, said Jacob Lowenthal, one of the attorneys representing victims – like Baclig – who have filed their own lawsuits, known as the “individual plaintiffs.”

“The categories of losses that the class is claiming are just grossly insignificant compared to our losses,” Lowenthal said.

Attorneys representing the class didn’t respond to messages from The Associated Press. In their trial brief, they challenged the idea that everyone who has a claim worth suing over has already done so. Many people have held off hiring attorneys, the brief said, because of the fire’s disruption to life, “distrust in heavy attorney advertising, and a desire to see how the process plays out first.”

Further complicating the matter are questions before the state Supreme Court, which is considering whether insurers can separately sue the defendants for reimbursement for the $2 billion-plus they have paid out as a result of the fire, or whether their share must come from the $4 billion settlement.

If the court says insurers can sue separately, that will likely torpedo the entire deal. Preventing insurers from going after the defendants is a key settlement term, and allowing them to do so would drain the money available for fire victims and lead to prolonged litigation, lawyers for the individual plaintiffs say.

Copyright © 2025 by The Associated Press. All Rights Reserved.

You May Also Like
Grab the Popcorn: The DNC Reportedly Has More Trouble, Including Big Money Issues

Get Ready for Drama: The Democratic Party Faces More Challenges, Especially with Finances

It’s been a tough time for the Democrats over the past few…
How a 'severe blow' to William's head signalled the end of Prince Charles and Princess Diana's turbulent marriage

Signs of the turbulent marriage of Prince Charles and Princess Diana marked by a ‘severe blow’ to William’s head

During lunch on June 3, 1991, at her favorite Italian restaurant in…
Federal judge orders GPS monitoring for ex-Coast Guard officer who allegedly threatened to assassinate Trump

Former Coast Guard officer accused of threatening to assassinate Trump ordered to wear GPS monitoring by federal judge

NEWYou can now listen to Fox News articles! A federal judge has…
Army soldiers from Minnesota, Michigan perish in separate Middle East incidents

Minnesota and Michigan Army soldiers die in different incidents in the Middle East

NEWYou can now listen to Fox News articles! This week, two U.S.…
Thousands of Nintendo Switch 2 consoles stolen in $1.4M cargo heist

$1.4M worth of Nintendo Switch 2 consoles stolen in massive cargo theft

Nintendo Switch 2 has been released after 8 years, and Fox News…
Young mother thrown from boat leaves behind grieving husband, 4 children after Alabama waters tragedy

Mother in her youth ejected from boat, passing away, leaving sorrowing spouse and 4 kids after tragedy in Alabama waters

NEWYou can now listen to Fox News articles! A young family in…
'Springsteen: Deliver Me From Nowhere' trailer: Jeremy Allen White stars as Bruce Springsteen

Trailer for ‘Deliver Me From Nowhere’ featuring Jeremy Allen White as Bruce Springsteen

On Wednesday, 20th Century Studios released the first official trailer for the…
How To Watch The Full Tucker Carlson Interview With Ted Cruz That’s Causing Major Political Waves

Guide on How to Watch the Complete Tucker Carlson Interview with Ted Cruz that is Making Significant Political Impact

Amid the ongoing conflict between Israel and Iran, the American public eagerly…
When doctors said my unborn child could have severe birth defects I suspected what might be to blame: My weight-loss jabs. I'm so angry I wasn't told - this is what women need to know: HANNAH SMYTH

Discovering my weight-loss injections could potentially cause birth defects made me question the impact on my unborn child. I am frustrated by the lack of information provided, highlighting the importance of awareness for women. – HANNAH SMYTH

It was desperation to lose the stubborn three stone in baby weight…
Horrific timeline of what would happen in the days, months and years after a nuclear attack on America

Predicted Events Following a Nuclear Attack on the United States – Days, Months, and Years Ahead

There is increasing concern about the potential for a global nuclear conflict…
Murdered Democratic lawmaker's home broken into just days after fatal shooting

Break-in at home of Democratic legislator who was killed happened shortly after the tragic shooting

NEWYou can now listen to Fox News articles! The home of Minnesota…
Wife of Boulder firebombing suspect begs Americans for help while judge delays deportation

“Boulder Firebombing Suspect’s Wife Seeks American Assistance as Deportation Decision is Postponed by Judge”

NEWYou can now listen to Fox News articles! The wife of accused…