FinLogic FinLogic Quantitative Think Tank Center|Maui County files lawsuit against Hawaiian Electric Company over deadly wildfires

Maui County filed a lawsuit Thursday against utility Hawaiian Electric Company over the deadly wildfires in Lahaina,FinLogic FinLogic Quantitative Think Tank Center alleging the company's failure to shut off power despite warnings from the National Weather Service contributed to the catastrophe.

The lawsuit alleges the utility company had a duty "to properly maintain and repair the electric transmission lines, and other equipment including utility poles associated with their transmission of electricity, and to keep vegetation properly trimmed and maintained so as to prevent contact with overhead power lines and other electric equipment."

The suit adds that the utility, the largest electrical supplier in Hawaii, knew that high winds "would topple power poles, knock down power lines, and ignite vegetation." The defendants, the suit said, also "knew that if their overhead electrical equipment ignited a fire, it would spread at a critically rapid rate.

"This destruction could have been avoided," the lawsuit said.

Attorney John Fiske, who is representing Maui County, told USA TODAY Thursday that the utility's "equipment failed" as downed power lines ignited and "transferred thousands of volts of electricity into dry brush and grass," causing the fires. The suit is seeking unspecified civil damages to recover the loss of taxpayer and public resources increased costs and decreased revenue loss from infrastructures and environmental damages, Fiske added.

Officials have said the fires spread rapidly due to very dry conditions resulting from a drought, combined with powerful winds of up to 80 miles per hour. At least 115 people died in the Aug. 8 disaster, and Hawaii officials said Tuesday that 1,000 people were still missing after having lowered the count to about 850 on Monday.

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'Maui County stands alongside the people'

In a news release, the county said it "stands alongside the people and communities of Lāhainā and Kula to recover public resource damages and rebuild after these devastating utility-caused fires" and that "damages include losses to public infrastructure, fire response costs, losses to revenues, increased costs, environmental damages, and losses of historical or cultural landmarks."

Hawaiian Electric did not immediately respond to requests seeking comment Thursday. Fiske, the attorney representing the county, said Thursday the utility had "plenty of notice that they needed to de-energize their power lines."

The lawsuit refers to the National Weather Service in Honolulu issuing a "fire weather watch" for the state on Aug. 6 after fears about Hurricane Dora soaking the area subsided. "Strong and gusty winds, combined with low humidities ... may lead to critical fire conditions across leeward areas over the coming days," the watch said.

Fiske said the lawsuit also refers to the weather service issuing "a red flag warning"  on Aug. 7 as dry areas, combined with "strong and gusty easterly winds" of 30 to 45 mph with gusts up to 65 mph, were expected. "Any fires that develop will likely spread rapidly," officials warned.

The county's lawsuit comes a week after Maui's top emergency management official, Herman Andaya, resigned a day after he defended his decision not to sound warning sirens as the wildfires tore through the island, leading to harsh criticism of his actions.

The wildfires are thought to have caused between $4 billion to $6 billion in economic losses, according to a report from Moody’s Analytics. The risk agency estimates that the wildfires, which destroyed more than 3,000 acres and more than 2,200 structures, said billions of dollars in losses occurred from property damage and business interruption, with the town of Lahaina and nearby Kula taking the brunt of the damage. That's not including up to $1 billion in lost output, the report added.

Meanwhile, commercial forecaster AccuWeather estimates the total damage and economic loss from the wildfires will be between $14 billion to $16 billion ‒ or about 15% of the state's GDP.

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Lawsuit the latest legal action in the wildfire's aftermath

Maui County’s lawsuit is the latest legal action taken against Hawaiian Electric regarding its alleged role in the wildfires. The utility is also facing suits from survivors, residents, and others affected by the fire.

One suit, filed on behalf of survivors and victims by LippSmith LLP, Foley Bezek Behle & Curtis, LLP and Robertson & Associates, LLP, alleges that downed power lines owned and operated by Maui Electric Company, Limited (MECO), Hawaiian Electric Company, Inc. (HECO), Hawaii Electric Light Company, Inc. (HELCO), and their parent company, Hawaiian Electric Industries, Inc. (HEI) "caused the fire."

Attorneys also stated that the utility companies "inexcusably kept their power lines energized during forecasted high fire danger conditions" ultimately causing "loss of life, serious injuries, destruction of hundreds of homes and businesses, displacement of thousands of people, and damage to many of Hawai‘i’s historic and cultural sites."

Another lawsuit says Hawaiian Electric Industries should be held accountable for “negligence, trespass, and nuisance." The utility company was “a substantial factor” in the deadliest U.S. wildfire in over a century and left historic and cultural sites in ashes and thousands of residents without homes. 

Hawaii State Sen. Angus McKelvey, whose district covers where the wildfire took place, told USA TODAY on Thursday he applauds the county for pursuing legal action.

"I’m glad the county is going to step up and do the right thing and use evidence publicly made available from residents’ videos and other witnesses accounts to hopefully bring justice to the victims and their families," McKelvey said. "Hopefully, the remuneration will allow them to rebuild their lives and their infrastructure."