Introduction

Maui County has filed a lawsuit against Hawaiian Electric, seeking damages for the deadly wildfires that have caused numerous fatalities and billions of dollars in property losses.

Hawaiian Electric’s Stock Falls

Upon news of the lawsuit, Hawaiian Electric’s stock fell 6% in extended trading. The electric utility announced the suspension of its quarterly dividend to allocate funds for rebuilding and power restoration after the fires.

Negligence in Powerline Management

Maui County’s attorneys claim that Hawaiian Electric negligently left its powerlines energized despite receiving a warning from the National Weather Service about high fire risks due to Hurricane Dora’s high winds and drought conditions.

Devastation and Loss of Life

The wildfires have caused extensive damage, reducing the town of Lahaina to ruins and resulting in the deadliest blazes in the US in over a century. The disaster has claimed at least 115 lives, with over 1,000 people still missing.

Initial Damage Reports

Hawaiian Electric reported that 30 utility poles were knocked down in West Maui, the region where Lahaina is situated, on the day the fires broke out.

The Lawsuit Allegations

The lawsuit filed by Maui County alleges that the powerlines ignited the fast-moving and destructive Lahaina Fire, leading to the destruction of numerous residences, businesses, churches, schools, and historic cultural sites.

Avoidable Tragedy

Maui County argues that the death and destruction could have been avoided if Hawaiian Electric had shut off the power. The estimated cost of rebuilding Lahaina, according to the Federal Emergency Management Agency, exceeds $5 billion.

Multiple Lawsuits and Financial Impact

This lawsuit is one of several filed against Hawaiian Electric seeking damages for the catastrophic wildfires. Fitch Ratings downgraded Hawaiian Electric’s credit rating to junk status due to potential liabilities of over $3.8 billion for the Maui wildfires. Pacific Gas & Electric in California filed for bankruptcy in 2019 under similar circumstances. Moody’s estimates the economic losses from the Maui wildfires to be as high as $6 billion.

Prior Knowledge and Negligence

The lawsuit claims that Hawaiian Electric was aware of the high wildfire risk in western Maui, as stated in Maui County’s 2020 hazard mitigation plan. Despite this knowledge, Hawaiian Electric used wooden utility poles that were susceptible to decay. The county alleges that many of these poles were severely damaged due to advanced decay during the high winds. Furthermore, the county states that Hawaiian Electric did not utilize available technology to reduce the risk of fires in its overhead transmission lines.