Maui Fires Mass Tort Lawsuit Update | $4 Billion Currently Held Up [2025]

Two years ago wildfires ravaged Lahaina, a community on Maui, Hawaii, and the fires have become one of the deadliest, most destructive wildfires in U.S. history. More than 100 people died, over 2,200 structures were lost, and thousands were displaced. Once the smoke cleared, litigation came embiggened, while victims recognized failures that led to disastrous consequences. At the center of the litigation are Hawaiian Electric Company (HECO) and its decision not to de-energize power lines in a period of hosting extreme fire conditions.

Now in 2025, the over $4 billion in settlement funds are ensnarled in legal limbo and has greatly delayed settlements to those who need it most. At Sneed & Mitchell LLP, we represent mass tort plaintiffs throughout the country. This article discusses the state of the Maui fire litigation, the roadblocks to getting compensation for victims of the fires, and what you should know if you or your family are victims of the catastrophe.

The Disastrous Outcomes

On August 8, 2023, wildfires ignited and rapidly took over the historic town of Lahaina on the island of Maui. Despite red flag warnings that included high winds and dry conditions, Hawaiian Electric chose not to preemptively de-energize power lines on those days. Following subsequent investigations, Hawaiian Electric determined that the downed power line ignited the fire, which could not be contained by firefighters because dry brush surrounded Lahaina and emergency responders took too long to respond.

Everything was catastrophic; Families were trapped in homes; historic sites were gone; and residents had to flee to safety through fire and smoke. Whole communities were erased in hours. Legal Claims Filed

Within days, lawsuits were initiated against Hawaiian Electric, Maui County, and a group of landowners (e.g., Kamehameha Schools) for reportedly not clearing brush and managing wildfire-prone land, as well as against telecom providers for the infrastructure (including poles and wires) relating to the cause and spread of the fire.

The plaintiffs in the mass tort claims include:

• Homeowners and renters who lost property

• Business owners whose property was lost or damaged, lost income because of the fire, suffered business closures, or are precluded from performing future business

• Individuals who suffered physical injuries

• Families of deceased individuals from the fire

The claims are based on contentions of negligence, wrongful death, nuisance, trespass and strict liability under Hawaii law.

The $4 Billion Global Settlement Agreement

By mid-2024, a tentative $4.037 billion global settlement was proposed among the lead defendants and the plaintiffs' lawyers. This was a significant step forward in eliminating potentially-complicated jury trials and timely giving financial relief to victims.

The settlement provides contributions by:

• HECO = ~$1.9 billion

• Kamehameha Schools = $870+ million

• Maui County, telecom providers, and landowners = the remainder of the total

• The State of Hawaii = $65 million in separate relief, which is distributed through the One Ohana Fund

Additionally, the settlement establishes a streamlined process for claim evaluations and compensation awards based on the severity of injury, loss of property and related damage.

Why Is the Money Not Being Paid?

While agreement was reached on the global settlement, the money is not being distributed due to complications involving disputes with insurance companies. In total, the insurance companies paid over $2 billion in property claims and are now trying to subrogate (which is basically the insurance companies are seeking some reimbursement from the same parties being sued by the victims).

The Hawaii Supreme Court ruled against insurance companies. It ruled that their rights of recovery must be addressed in the fund and not by new lawsuits. There are other administrative and procedural steps that are necessary for the distributions to begin.

Each Plaintiff has their own claim, their own facts, their own injuries, and their own damages. A global settlement (like this one) does allow hundreds or thousands of plaintiffs to recover through a single mechanism, but it is still a complex and procedural legal process.

The Hawaii Supreme Court issued a significant ruling stating "No!" They cannot file their own lawsuits; the settlement is the only means for resolving liability. This decision was important because if the insurers sued, they risked depleting the fund before the victims ever received compensation.

The Court Will Continue to Supervise

Ultimately, the settlement must be approved by the Maui Circuit Court. After the Court approves the settlement, the administrative phase of the settlement process and the payment to the Plaintiffs will begin.

Some of the insurance companies may continue to seek some form of appeal to the U.S. Supreme Court. It is highly unlikely that this would succeed given the Court's previous rulings, but an appeal could delay this process for several additional months.

What Should the Plaintiffs Do Now?

If you are a fire victim and currently a litigant within the litigation:

• Stay in contact with your attorney;

• Keep updated copies of any medical documentation and financial loss documentation;

• Be prepared to respond to the claims administrator when that process opens.

If you have not yet joined the lawsuit, you may still be able to file claims but time is short. You need to speak with a mass tort attorney now.

Sneed & Mitchell LLP can assist new clients in the existing mass tort or evaluate whether filing a separate civil lawsuit may provide a greater recovery for you.

Why Legal Representation Is Important

There is considerable complexity to a mass tort settlement - and particularly even when a settlement occurs. Plaintiffs have obstacles up ahead, such as:

• Proving damages

• Dealing with insurance liens

• Negotiating fair amounts of the final settlement

As your attorneys we are here to:

• To complete the pre-litigation demand forms

• Preserve all relevant evidence

• Document how much we have recovered for you as legal entitlement

• Challenge the low offers on your claims

• If need we are ready to litigate your case in front of jurors to obtain punitive damages in the worst case scenarios.

Timing: What To Expect

Right Now the courts are waiting on a their final approval for the global settlement offer. Although you should not take the estimated timeline as a hard and fast rule, the following could be a possible scenario.

• The Next 30-60 days: If the global offer is approved, claims process will start

• The Next 3-6 months: The Payouts should all be made in this time frame

• Ongoing: Insurance companies can file appeals

We understand the delay is frustrating but we are making advancements. It is also important for victims to keep track of all expenses, hardships and hard documentation related to the fires.

Sneed & Mitchell LLP: Your Advocate in Mass Tort Litigation

With decades of combined experience in complex civil litigation, Sneed & Mitchell LLP is proud to stand with Maui fire victims. We’ve helped thousands of plaintiffs in wildfire, environmental, and utility negligence cases.

What sets us apart:

• We are undefeated at trial

• We offer contingency representation—you pay nothing unless we win

• We guide clients through every stage of evidence, claims, and compensation

Whether you lost your home, your business, or someone you love, we’re here to help you hold the responsible parties accountable and recover the compensation you’re owed.