honoluluadvertiser.com

Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser
Posted on: Sunday, November 8, 2009

$25M agreement settles lawsuits over Kauai dam tragedy


BY Rick Daysog
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

Jimmy Pflueger

spacer spacer

In one of the largest legal settlements in Hawaii in recent years, the families of seven people killed in the Kaloko Dam tragedy and several Kauai property owners will receive $25 million in an out-of court settlement, The Advertiser has learned.

The global settlement of multiple Kaloko Dam lawsuits was announced Oct. 29 in circuit court in Líhu'e, but details of the settlement, including how much the injured parties would receive, were not released.

The money will be paid by retired car dealer Jimmy Pflueger, the state of Hawaii, Kauai County, current and former owners of the land under the dam and their insurers, several people familiar with the deal said.

Insurers, engineering firms and contractors — some paying as little as $100,000 — also will contribute to the settlement, which resolves more than half a dozen lawsuits stemming from the March 14, 2006, disaster.

Legal experts said the settlement cannot be used in the criminal proceedings against Pflueger, who was indicted last November by a Kauai grand jury on man-slaughter charges.

William McCorriston, attorney for the 83-year-old Pflueger, would not comment when asked about details of the deal.

In the past, McCorriston has argued that Pflueger has been unfairly targeted for criminal prosecution, even though "a large number of parties" have agreed to contribute to the civil settlement.

Attorneys for the victims' families — Rick Fried and Tom Grande — also would not comment.

Amid heavy rains on March 14, 2006, the 116-year-old Kaloko Dam collapsed, sending an estimated 400 million gallons of water raging through Kauai's North Shore.

The surge ripped through Kauai resident Bruce Fehring's property, killing seven people. It also destroyed parts of a state highway, tore through neighboring properties and damaged a large section of an ocean reef.

The victims included Alan Gareth Dingwall, Daniel Jay Arroyo, Rowan Grey Makana Fehring-Dingwall, Aurora Solveig Fehring, Christina Michelle McNees, Timothy Wendell Noonan Jr. and Carl Wayne Rotstein.

The global settlement in many ways parallels the findings of a 2007 independent state investigation by attorney Robert Carson Godbey, which found widespread fault in the events that led up to the deadly breach.

The Godbey report blamed Pflueger for failing to maintain the dam and criticized the state for failing to conduct legally mandated dam safety inspections.

The report also faulted Kaua'i County for failing to act on grading violations by Pflueger and criticized Kilauea Irrigation Co. for inadequate maintenance of the irrigation system that fed into the Kaloko Reservoir.

However, the state's liability was greatly reduced due to a ruling in April that narrowed the grounds on which the state could be sued.

The state attorney general's office and Kaua'i county officials have declined to publicly disclose what they are paying in the settlement, which has not yet been finalized by Kauai Circuit Judge Kathleen Watanabe.

Lisa Ginoza, of the state attorney general's office, said the global settlement agreement with the general terms of the settlement, the total settlement amount and the amount the state must pay will be disclosed "once the settlement documents are fully executed."

She added, "There are confidentiality agreements as to the individual amounts paid by the other defendants."

The Advertiser has made a request for the records under the state's open records law, saying the public is entitled to know the state's and Kauai County's portion of the settlement.

"We cannot imagine any scenario or basis in law that would keep the state's settlement portion confidential since public funds are being used in this case," said Advertiser Editor Mark Platte. "Please know that we are willing to pursue all legal channels to find out the sum of taxpayer money being used in this case, as we believe the public has a vested interest in the outcome."

• • •