Hawaii High Court Shields Charter, Hawaiian Telcom over Maui Fires

WASHINGTON, Feb. 11, 2025 – The Hawaii Supreme Court, in a win for telecommunications companies, ruled unanimously on Monday to allow a $4 billion settlement between Maui fire victims and responsible parties to move forward, according to Gov. Josh Green.

The five justices rejected insurance companies’ request for permission to seek compensation from entities that contributed to the fires for insurance payouts to policyholders that totaled $2.3 billion, likely bringing financial closure to several telecom companies, including Charter Communications, and Hawaiian Telcom, and Hawaiian Electric.

The court ruled that in a settlement between responsible parties and insured plaintiffs, insurance companies can only seek compensation from the insured, not those responsible.

“The settlement monies from the defendants will go directly to fire victims rather than to the insurance companies,” Green said in a statement.

It is unclear whether that decision can or will be appealed to the U.S. Supreme Court.

The fires – which killed 102 and destroyed most of coastal Lahaina – were allegedly exacerbated by overbuilt communications equipment that caused telephone poles to become unstable in high winds. 

A telephone pole owned by Hawaiian Electric–the primary defendant in the case–apparently ignited the fire after it collapsed in vegetation. The company faced possible bankruptcy if insurance companies were allowed to pursue compensation.

Under the settlement, Hawaiian Electric agreed to pay $1.99 billion to affected families. Charter and Hawaiian Telcom will pay $300 million combined. Charter declined to comment. The remaining $1.71 billion will be split between the state of Hawaii and Kamehameha Schools, owners of property that contributed to the fire’s fast spread.

Lawyers representing thousands of fire-related victims expressed relief and celebrated the court’s decision.

“Their ruling is a powerful affirmation of the law in Hawaii. They demonstrated an unwavering commitment to justice and fairness,” Cynthia Wong, liaison counsel for the plaintiffs group, said to Honolulu Star Advertiser in an email.

State Attorney General Anne Lopez also hailed the ruling, “We are very pleased that this hurdle to resolving the claims of the fire victims has been cleared,” she said.