A Circuit Court judge cleared the way yesterday for payments to former Hilton Hawaiian Village guests in a $1.8 million class action settlement over mold infestation that closed one of the hotel towers.

The lawsuit alleged that Hilton did not disclose the presence of mold contamination in the hotel's Kalia Tower guest rooms between June 14 and July 23, 2002.

Hawai'i Circuit Judge Eden Elizabeth Hifo approved an agreement that was reached in December, meaning that guests who submit claims can now begin receiving compensation, said attorney Thomas Grande.

About 2,900 guests from almost every state and many countries around the world are eligible for payments or credits, according to lawyers for the plaintiffs.

Under the agreement, Hilton will pay the guests either $150 in travel coupons or $50 in cash for each night they spent at the hotel. The settlement does not include payment of attorneys' fees, which will be decide by the court at a hearing set for July 2006.

Mold overtook the 453-room Kalia Tower in the Hilton Hawaiian Village complex and forced its closure in 2002, about a year after the $95 million building was built.

Experts said the mildew was a variety of mold that can trigger asthma and also irritate the eyes, nose and throat. No serious health problems were reported.

Hilton spent $20 million on consulting and investigation fees to clear out the mold and another $35 million to replace furniture, drapes and wallpaper and clean ventilation systems in the building.

The tab for the cleanup was more than five times the original $10 million estimate. The tower reopened in September 2003.

Hilton said design and construction defects fed the excessive humidity that encouraged the mold to grow.

The hotel blamed architects, engineers, construction companies and inspection firms and has sued 18 companies and individuals for $60 million.