8.56M settlement reached in Sacred Falls lawsuit
By James Gonser
Advertiser Urban Honolulu Writer
An $8.56 million settlement has been reached between the state and some of the survivors and the families of victims in the 1999 rockfall at Sacred Falls State Park, bringing an end to the court case over the tragedy.
Attorneys Arthur Park and Laurent Remillard represent 32 people who sued the state after the Mother's Day rockslide in 1999 that killed eight people and injured 50.
"We believe this is a win-win situation for both sides," said Park. "This will allow both sides to put this matter behind them so our clients can go ahead and live their lives and the state can go on with its business. This settlement will bring final and total closure for the state for any litigation arising out of the rockfall."
The lawyers represent 19 people injured at the scene and the families of four people who died. The other victims and families did not sue the state.
The settlement, which must be approved by the probate court and Legislature, is one of the largest ever in Hawai'i stemming from a natural disaster.
Attorney General Mark Bennett said yesterday that the state decided to settle after considering factors such as the cost of continued litigation, the lack of secondary insurance to cover a possibly larger settlement, and a new state law protecting the state from similar lawsuits.
"Once the process is finalized, including the Legislature approving the settlement ... then all the lawsuits will be dismissed, including the appeal," Bennett said.
"I believe that the state has learned from this tragedy and the legislation that went into effect will result in our public areas being safer and the state being able to avoid liability for natural hazards in the future."
In a September 2002 ruling, Circuit Judge Dexter Del Rosario said the state did not adequately warn visitors that rocks above the popular hiking trail posed a potentially fatal hazard. He ruled that the state must pay the families, but the state appealed before the amount could be determined.
Then-Attorney General Earl Anzai said Del Rosario's ruling set a dangerous precedent because it raised the issue of adequate warning signs.
The Legislature passed a bill this year establishing a process for installing and maintaining warning signs. It said posting of signs would be considered legally adequate warning of dangerous natural conditions and that the signs must be inspected and maintained.
"No amount of money is going to bring back the lives of people who are lost," Bennett said. "We believe the legislation passed was good and contributed to our decision to settle the case. Everyone's hearts goes out to the victims. It was a horrible thing."
Remillard said the state will have to pay only the insurance deductible, $2 million, which must be approved by the Legislature. The rest will be covered by the insurance company. Insurance payments to plaintiffs will begin next month and be paid over about three months.
If approved, the state's portion will be paid in August. Minors in the case will be paid when they become adults, Remillard said.
The state closed the Sacred Falls Trail after the landslide, and the park has remained closed since. The state is considering options for the area such as designating the upper part as a natural reserve and the lower portion as a fish reserve reopened to limited public use.
About 55,000 people a year once visited the falls, hiking the 2.2-mile trail that gently ascends a lush canyon, ending at a waterfall and swimming hole.
Reach James Gonser at jgonser@honoluluadvertiser.com or 535-2431.
