76 Hawai'i 433, Wong-Leong v. Hawaiian Independent Refinery, Inc.
| Decision Date | 06 September 1994 |
| Docket Number | WONG-LEONG,No. 16747,16747 |
| Citation | 76 Hawaii 433,879 P.2d 538 |
| Parties | 76 Hawai'i 433 Beatrice, as Special Administrator of the Estate of Christopher Keith Chong, Deceased; Beatrice Wong-Leong and William Chong, Plaintiffs-Appellees/Appellants, v. HAWAIIAN INDEPENDENT REFINERY, INC.; Pacific Resources, Inc.; Chief Clerk of the First Circuit Court, State of Hawai'i, as Special Administrator of the Estate of Joshua T.K. Rellamas, Deceased, Defendants-Appellees, and John Does 1-10; Jane Does 1-10; Doe Partnerships 1-10; Doe Corporations 1-10; Roe "Non-Profit" Corporations 1-10; and Roe Governmental Agencies 1-10, Defendants. Brian D. SUGIMOTO, as Special Administrator of the Estate of Elizabeth Edna Kawailani Lacaran, Deceased; Brian D. Sugimoto, as Special Administrator of the Estate of Shasadee Cynthia Hoku Huali Okalani Lacaran-Chong, Deceased; Brian D. Sugimoto, as Prochein Ami of Kristy Allison Pohaikealoha Lacaran-Chong, a minor; and Eleanor Mae Lacaran, Plaintiffs-Appellants/Appellees, v. HAWAIIAN INDEPENDENT REFINERY, INC.; Pacific Resources, Inc.; Chief Clerk of the First Circuit Court, State of Hawai'i, as Special Administrator of the Estate of Joshua T.K. Rellamas, Deceased; Beatrice Wong-Leong, as Special Administrator of the Estate of Christopher Keith Chong, Deceased, Defendants-Appellees, and John Does 1-10; Jane Does 1-10; Doe Partnerships 1-10; Doe Corporations 1-10; Roe "Non-Profit" Corporations 1-10; and Roe Governmental Agencies 1-10, Defendants. |
| Court | Hawaii Supreme Court |
Bert Sakuda (Keith K.H. Young of Cronin, Fried, Sekiya, Kekina & Fairbanks and Brian D. Sugimoto, with him on the briefs), Honolulu, for plaintiffs-appellants/appellees Brian D. Sugimoto and Eleanor Mae Lacaran.
George W. Playdon (M. Lorena Uy and Wayne S. Sakamoto of Reinwald, O'Connor, Marrack, Hoskins & Playdon, with him on the brief), Honolulu, for defendants-appellees Hawaiian Independent Refinery, Inc. and Pacific Resources, Inc.
Terence S. Yamamoto (Kenneth T. Okamoto and Sharon R. Himeno of Price, Okamoto Himeno & Lum, with him on the brief), Honolulu, for plaintiffs-appellants Beatrice Wong-Leong and William Chong.
Before MOON, C.J., and KLEIN, LEVINSON, NAKAYAMA and RAMIL, JJ.
Plaintiff-Appellee/Appellant Beatrice Wong-Leong 1 and Plaintiff-Appellant/Appellee Brian Sugimoto 2 (collectively Appellants) appeal the circuit court's order granting Defendant-Appellee Hawaiian Independent Refinery, Inc.'s (HIRI) motion to dismiss or in the alternative for summary judgment. 3 Wong-Leong and Sugimoto brought separate actions against HIRI alleging that HIRI was liable for the deaths caused by the drunk driving of one of its employees, Joshua Rellamas. HIRI consolidated the actions, and then obtained summary judgment on all claims, asserting that (1) as a matter of law, it cannot be held liable as a social host because Hawai'i does not recognize social host liability, and in any event, it was not a social host, (2) it is not liable for negligent failure to control Rellamas because it could not know of any foreseeable risk, nor did it permit the consumption of alcohol on HIRI premises, and (3) it is not liable under the theory of respondeat superior because Rellamas was not acting within the scope of his employment at the time of the accident.
Appellants opposed HIRI's motion, arguing that (1) because there is a business purpose and employment relationship, or employer benefit, in the use and consumption of alcohol on refinery premises in general, and specifically as part of refinery tradition in celebrating promotions, HIRI can be held liable under the theory of respondeat superior, (2) HIRI can be held liable for negligent failure to control its employee because, unlike the employers in previously decided Hawai'i cases, HIRI had the potential to control Rellamas and, in fact, actually exercised control, albeit negligently, in the instant case, and (3) Johnston v. KFC Nat'l Mgmt. Co., 71 Haw. 229, 788 P.2d 159 (1990), does not dispose of their social host claim because that case can be distinguished by virtue of the alleged drug use by Rellamas and the frequency of alcoholic consumption on HIRI's premises.
After the circuit court ruled in favor of HIRI, Appellants moved for and were granted a Hawai'i Rules of Civil Procedure (HRCP) Rule 54(b) certification of final judgment and subsequently filed a timely notice of appeal. We affirm in part, reverse in part, and remand for further proceedings.
On June 11, 1989, Rellamas crashed into a vehicle carrying Christopher Chong, Elizabeth Lacaran, and Shasadee Lacaran-Chong. All four were killed in the two-car accident. The medical examiner determined that alcohol and marijuana 4 consumed by Rellamas were contributing factors to the fatal accident.
Rellamas was employed by HIRI at its Campbell Industrial Park refinery. He was returning home after drinking beer at a party celebrating his recent promotion. The party consisted of about nine co-workers and was held at the picnic area on HIRI's premises. The record reflects that, in keeping with an apparent tradition of celebrating promotions at HIRI, Rellamas provided money and had a co-worker purchase beer for the party. The party started at about 6:00 p.m. and continued until about 7:30 p.m., when the evening shift supervisor directed the workers to leave the premises. Rellamas was on his way home from the party when the accident occurred at about 8:30 p.m. He did not make any stops between leaving work and the accident.
The affidavits and depositions before the court on HIRI's motion for summary judgment reveal the following facts: The consumption of beer at HIRI was extensive, taking place nearly every day. Specifically, three main events involving alcoholic consumption regularly occurred at the refinery: 1) pau hana (end-of-work) parties on the last Friday of every month; 2) playing horseshoes almost daily; and 3) "mini" parties for promotions, birthdays, babies, vacations, and other similar events. All of these events took place in the picnic area on HIRI's property, next to the parking lot but outside the fence enclosing the refinery's operations. HIRI placed picnic tables and a grill in the area. There was also an eighteen cubic foot "cooler" constructed by HIRI's maintenance department for the drinks.
The deposition testimony reveals that an apparent tradition of holding pau hana parties began sometime around late 1974. During the initial years, HIRI sponsored these parties, paying for the food and alcohol. The maintenance department coordinated the events and received a company check from HIRI's downtown office to buy the supplies. An employee would purchase the food, beer, and wine using these funds. Sometime between 1979 and 1981, HIRI stopped supplying the alcohol, but continued to provide money to purchase food. Thereafter, contractors who were not employees of HIRI, but who were working on the premises, would provide the alcohol for the pau hana parties. These parties continued as a regular event until after the Rellamas accident.
Parties were also held regularly for promotions, birthdays, and other events. These parties were not as extensive as the pau hana parties and were not paid for by the company or contractors. At promotion parties, the promoted workers provide the beer, much like Rellamas had done for his promotion party.
The horseshoe club gatherings consisted of various HIRI employees who got together after their shifts to throw horseshoes and drink beer. The club met practically every day. At most, if not all of these gatherings, the drinks were stored in the cooler provided by HIRI.
Deposition testimony revealed that the company and its managers obviously knew about the different parties and drinking get-togethers. In fact, supervisors often attended these parties. Kennard Vandergrift, the Refinery Administrative Manager, testified that around 1985 HIRI instituted a policy prohibiting consumption of alcoholic beverages in the refinery at any time. Vandergrift also noted, however, that this policy only governed the area inside the fenced-in portion of HIRI's property; consumption of alcohol was not prohibited in HIRI's picnic and parking lot area. After further questioning, Vandergrift admitted that "[t]he company tolerated [the drinking, but] certainly didn't encourage it in any way."
Furthermore, Shift Supervisor Don Drogowski testified that a petition was circulated about a year before the accident requesting that the "current practice, which allows employees to consume alcohol during lunch or break hours ... be reviewed by the policy task force and discontinued due to its safety sensitive nature." Approximately eighty-five employees signed this petition. Another company policy provided that no one could remain in the picnic area after 5:30 p.m. This policy was apparently not strictly enforced; on the night of the Rellamas accident, the group was in the picnic area drinking until after 7:30 p.m. In fact, the promotion party did not begin until after 5:30 p.m.
Finally, after the Rellamas accident, management discussed terminating the pau hana parties. Aldrich Kane, HIRI's Maintenance Manager, testified that alcohol was no longer served at the pau hana parties after the Rellamas accident, and that the parties themselves were discontinued about three to five months after the subject accident.
Reed v. City & County of Honolulu, 76 Hawai'i 219, 225, 873 P.2d 98, 104 (Sup.1994). "Summary judgment is appropriate if the pleadings, depositions, answers to interrogatories, and admissions on file, together with...
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