Yacht Owners Proposed to Pay $375,000 in Maui Coral Reef Settlement

Yacht owners will pay $375,000 to the state to resolve a legal battle stemming from a 2023 shipwreck off the Maui coast.

The settlement concludes a multi-year dispute involving the 94-foot yacht Nakoa, which ran aground on a coral reef in Honolua Bay after becoming detached from its mooring. While the initial fine recommendations were significantly lower, public pressure from West Maui residents pushed the Board of Land and Natural Resources to seek much higher penalties for the environmental damage caused by the vessel.

The financial fallout for the owners, Kevin and Kimberly Albert, is expected to climb toward $1 million when combined with federal obligations. According to Aloha State Daily, the Alberts must also pay an unspecified sum to the United States to cover costs incurred by the U.S. Coast Guard during the removal of the grounded vessel.

The damage to the marine ecosystem was extensive, according to findings from the Department of Land and Natural Resources’ Division of Aquatic Resources. The grounding of the Nakoa resulted in the destruction of at least 119 living coral colonies and impacted more than 1,600 square meters of “live rock,” which serves as a critical substrate for marine life.

Under Hawai‘i statutes, the act of breaking or damaging coral or live rock carries penalties of up to $1,000 per injured specimen. This strict regulatory framework drove the initial assessment of liability, which targeted the yacht’s owners, its operator, Noelani Yacht Charters, and the charter company’s agent, Jim Jones.

The scale of the proposed penalties shifted dramatically during the proceedings:

Entity/Stage	Proposed or Imposed Fine
Initial 2023 DLNR recommendation	$117,000
BLNR assessment following public outcry	$1.8 million
Final settlement for the Alberts	$375,000

The Alberts centered their legal defense on the claim that they were not responsible for the vessel’s actions at the time of the accident. Contested case documents show the couple had reported the Nakoa stolen on Feb. 17, 2023, three days before the yacht ran aground in Honolua Bay.

The owners alleged that Jim Jones, the agent for Noelani Yacht Charters, was using the yacht for a personal trip when the incident occurred. This distinction was central to their argument that they should not be held liable for the environmental destruction caused by a vessel they no longer controlled.

Despite these arguments, the Alberts reached an agreement to pay the $375,000 to resolve the state’s claims. This settlement, however, does not clear all parties of responsibility.

The Division of Aquatic Resources said that it is maintaining its pursuit of accountability against both Jim Jones and Noelani Yacht Charters. The state’s claims against the charter company and its agent remain active and unresolved.

The Board of Land and Natural Resources is scheduled to discuss whether to officially approve the settlement on Friday, Nov. 13.