‌Aloha nō e ka ʻohana o Kamehameha,

‌As promised, the Board of Trustees and I are writing to offer a detailed update about the Lahaina global settlement.

‌ Our joining this settlement ensures the restoration of Lahaina’s people and community, protects Ke Aliʻi Pauahi’s trust, and offers future opportunities and hope. We made this decision as a neighbor, land steward, water conserver, education provider, and community partner in Lahaina.

‌The landscape

‌On August 8, 2023, KS’ Kuʻia lands were part of a deeply tragic day for Lahaina. The Kauaʻula winds tore off roofs and toppled utility poles, which sparked a fire that was initially subdued but flared up again. Powerful winds pushed the fire ma kai through KS’ land, over the Lahaina Bypass Road, and across many parcels, claiming 102 loved ones, injuring others, and consuming nearly 2,200 structures.

‌Within hours, KS joined many others to share aloha, pule, funds, and items needed in Lahaina. KS has continued to support the community in healing, rebuilding, restoring, and reimagining. Our ongoing efforts and aspirations have been shared in prior messages and on our website, and we will continue to keep you updated. 

In the months after the fire, as attention turned to resolution, over 600 lawsuits named KS as a defendant, among others, with potential liabilities alleged to be multiple billions of dollars for the loss of life, injury, property damage, and emotional trauma. 

‌A pathway forward

Recently, the parties to these lawsuits, including KS, entered mediation, resulting in a tentative global settlement to resolve all claims against all parties for a total of about $4 billion. From this total, the amount allocated to KS is $872.5 million, which will be paid in installments.

‌KS’ agreement to this settlement is contingent on these conditions being first satisfied: 

1. KS agreeing with the other parties on terms of the final documents; 
2. KS receiving its regulatory approvals from the State Attorney General, State Probate Court, and Internal Revenue Service, which will follow KS completing diligence and fiduciary reviews to assure prudent uses of trust resources; and
3. KS receiving a fully signed Memorandum of Agreement (MOA) between KS, the State of Hawaiʻi (State), and Maui County (County) for the restoration of Lahaina and other matters (described further below). 

‌The Board of Trustees and I carefully considered the many aspects of this settlement and are confident that this is the best way forward for our trust, our haumāna, and the lāhui. 

• It provides relief to Lahaina families in need. While KS may be positioned as an adversary in litigation, the folks involved are our families too and the very people we pledged to kōkua. It is important to provide aid sooner than later.
• It avoids protracted litigation. KS is facing an unprecedented number of cases brought by attorneys from all over the country, introducing novel theories of liability. While we are well positioned to fight these cases, there are costs and risks of highly unpredictable outcomes that can arise from so many lawsuits. 
• It allows time for approvals. The settlement process will allow us time to complete our reviews and obtain the regulatory approvals we need as fiduciaries.
• It addresses future situations. In the MOA, KS is asking the State and County to support laws to protect communities from wildfire and other natural disasters, including establishing clear, defensible standards of care for property owners. 
• It allows steps to be taken to minimize impacts on KS’ programs. KS plans to spread settlement payments over time and use its insurance proceeds to minimize program cuts. In addition, under the MOA, the State will provide support for Native Hawaiian education projects and for KS’ development of its properties to enable KS to generate returns to reduce the impacts of this settlement on Native Hawaiian education. 
• It assures a commitment to restoration. An essential condition for KS entering this settlement is the assurance by the State and County that they remain committed to Lahaina’s restoration. The MOA will affirm this and seek their commitment to adopt culture-based, community-driven plans; restore cultural and historical places (e.g., Mokuhinia and Mokuʻula); build infrastructure (e.g., R-1 water line); create community gathering places; establish a learning center (with a kaiapuni preschool and K-12 kula kaiapuni facilities); and financially support KS’ restorative development projects so they can become financially viable.

‌
Ka ipu kukui pio ʻole 

The foresight that led our Hawaiian Kingdom from its capital of Lahaina was energized by ka ipu kukui pio ʻole ʻā a mau i ka makani Kauaʻula, the ever-bright torches that cannot be extinguished even by the Kauaʻula winds. This poetic reference refers to bold leaders educated at Lahainaluna, whose evening lamps could be seen from Lahainalalo. Our use of “ka ipu kukui pio ʻole” recognizes Lahaina kamaʻāina today whom KS envisions as leading voices to design Lahaina’s future.

The people and community of Lahaina serve as beacons for us. Even as the fires were still smoldering, these ipu kukui pio ʻole acted swiftly to serve their community. Their leadership enabled many others to join and offer much needed kōkua.

As they considered Lahaina’s restoration challenges, these ipu kukui pio ʻole spotlighted how its dilemmas were seeded long ago. Today they are calling for hulihia—deep, foundational change to renew some of Lahaina’s greatest strengths created by kūpuna of past generations, such as its renowned waterways, fishponds, and intensely farmed lands. This drive is underway and can be fully addressed through the MOA, which offers a vehicle for the Lahaina community to assert its inherent ea (agency and ability to rise up). This will bolster our lāhui nation building across the pae ʻāina, focusing in this instance on our Hawaiian Kingdom’s capital, the ʻāina that birthed our constitution that still affords us fundamental rights today.

With the insights of our kūpuna and guidance from Ke Akua, we sought solutions that strengthen our relationships with the people of Lahaina, protect Ke Aliʻi Pauahi’s trust, and forward our vision to grow ʻōiwi leaders to advance ea. We have faith that this difficult era will build our collective resilience and ability to grow, evolve, and be stronger for future generations.

‌Me ke aloha palena ʻole,

‌Jack Wong

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