Hawaiian Electric Industries Inc. saw a significant boost in investor confidence after challenging a lawsuit filed by Maui County that accused the company of causing the fatal Lahaina fire. The utility has suggested that the county's fire department may be responsible for failing to contain the blaze.
The initial fire on the morning of August 8 was believed to have been triggered by power lines falling in strong winds. However, the second fire that devastated the town of Lahaina occurred in the afternoon, hours after Hawaiian Electric Co. had already turned off power in the area, according to a statement released by the utility on Monday.
Following the filing of the lawsuit by Maui County and investors last week, claiming that the utility negligently failed to cut power and implement safety measures to control the fire, shares of Hawaiian Electric Industries surged by up to 52%, the largest increase to date. Prior to this, the company's shares had experienced a 70% decline.
Hawaiian Electric Co.'s President and CEO, Shelee Kimura, expressed disappointment at the County of Maui's rush to take legal action before completing its own investigation. Kimura stated that the complaint was both factually and legally irresponsible.
As the legal battle unfolds, Hawaiian Electric's remarks have set the stage for a potentially heated dispute between the utility and Maui County, each claiming the other is responsible for the devastating Lahaina fire. The fire ravaged the historic town, claimed the lives of at least 115 individuals, and caused over $5.5 billion in damages. Additionally, several lawsuits on behalf of the victims have been filed against Hawaiian Electric, alleging negligence for not shutting off power during critical wildfire conditions.
Hawaiian Electric has revealed that the Maui County Fire Department had responded to the morning fire caused by its power lines and had declared it "100% contained" by 9 a.m. The utility stated that the Maui County fire chief later reported that the fire had been "extinguished" after his crews conducted investigations.
However, around 3 p.m. on the same day, Hawaiian Electric reported that its crew members noticed a small fire near the original blaze site. The utility claims that its power lines in the area had been turned off more than eight hours earlier.
Kimura added, "Unfortunately, the county's lawsuit may leave us no choice but to demonstrate in the legal system its responsibility for what occurred on that day."
It remains to be seen how this legal battle between Hawaiian Electric and Maui County will unfold and who will ultimately be held accountable for the devastating Lahaina fire.