90 Hawai'i 152, Amantiad v. Odum

• Decision Date: 20 May 1999
• Docket Number: No. 21269,21269
• Parties: 90 Hawai'i 152 Michael AMANTIAD, Plaintiff-Appellant, and Oahu Transit Services, Inc., Plaintiff-Intervenor-Appellee, v. Christopher ODUM, John Doe 1-10, Doe Partnerships, Corporations, and/or Other Entities 1-10, Defendants-Appellees.
• Court: Hawaii Supreme Court

Page 160

977 P.2d 160

90 Hawai'i 152

Michael AMANTIAD, Plaintiff-Appellant and Oahu Transit Services, Inc., Plaintiff-Intervenor-Appellee, v. Christopher ODUM, John Doe 1-10, Doe Partnerships Corporations, and/or Other Entities 1-10 Defendants-Appellees.

No. 21269.

Supreme Court of Hawai'i.

May 20, 1999.

R. Steven Geshell, Honolulu, for Plaintiff-Appellant Michael Amantiad.

Roy F. Epstein and Kathy M. Sarria, of Reid, Richards & Miyagi, Honolulu, for Plaintiff-Intervenor-Appellee Oahu Transit Services, Inc.

MOON, C.J., and KLEIN, LEVINSON, NAKAYAMA, and RAMIL, JJ.

Opinion of the Court by RAMIL, J.

The instant appeal arises from the circuit court's denial of plaintiff-appellant Michael Amantiad's Hawai'i Rules of Civil Procedure (HRCP) Rule 60(b) ¹ motion to vacate the circuit court's August 26, 1997 order granting plaintiff-intervenor-appellee Oahu Transit Services, Inc.'s (hereinafter referred to as "OTS") motion to enforce settlement, after all parties, including defendant-appellee Christopher Odum, stipulated to dismiss the matter with prejudice.

On appeal, Amantiad essentially contends that the circuit court abused its discretion in denying his motion to vacate the order enforcing the settlement, because: (1) the circuit court lacked jurisdiction, insofar as the parties stipulated to dismiss the matter with prejudice and the matter was dismissed on July 1, 1996; (2) the circuit court lacked jurisdiction, insofar as the Director of Labor and Industrial Relations (hereinafter referred to as the "Director of Labor") retains original jurisdiction, pursuant to Hawai'i Revised Statutes (HRS) § 386-73 (1993), over a compromise, waiver, or "wash" of future workers' compensation benefits; (3) a proper evidentiary hearing on the settlement's validity was not conducted; and (4) Amantiad's due process rights, under the fourteenth amendment to the United States Constitution and article I, section 5 of the Hawai'i Constitution (1978), were violated, insofar as he lacked the advice and benefit of his workers' compensation counsel.

Because the dispositive issue on appeal is whether the circuit court lacked subject matter jurisdiction to hear OTS's motion to enforce settlement after all parties and claims were dismissed with prejudice, and because we hold that the circuit court lacked jurisdiction in this regard, ² we reverse (1) the circuit court's December 16, 1997 order denying Amantiad's motion to vacate and (2) the circuit court's August 26, 1997 order granting OTS's motion to enforce settlement.

I. BACKGROUND

On February 3, 1993, at approximately 9:45 a.m., Amantiad, a bus driver for OTS, was servicing a bus stop on Kuhio Avenue. Traveling in the same direction as Amantiad, Defendant Odum attempted to turn right onto Lewers Street in front of Amantiad's bus, from a lane immediately to the left of Amantiad. The right rear of Odum's vehicle struck Amantiad's bus. Based upon, inter alia, medical expenses and wage loss stemming from the February 3, 1993 accident, Amantiad filed a tort action against Odum on March 22, 1995, in the first circuit court.

Pursuant to HRS § 386-8 (1993) and Hawai'i Rules of Civil Procedure (HRCP) Rule 24, providing for intervention as of right, OTS moved to intervene as Amantiad's employer, on March 30, 1995. Amantiad filed a statement of no position on April 11, 1995, and the circuit court granted OTS's motion to intervene on April 25, 1995. OTS thereafter filed a complaint in intervention against Odum on April 27, 1995. Apparently, the matter was assigned to the Court Annexed Arbitration Program (CAAP); a CAAP arbitrator was appointed, and the arbitration was set for May 8, 1996. However, due to an ostensibly strong potential for settlement, the parties agreed to and engaged in a compressed settlement time line. With the aid of the circuit court, the parties engaged in settlement negotiations. An early settlement conference was set for and held on April 17, 1996; however, no settlement agreement was reached at that time. A second settlement conference was set for and held on May 2, 1996.

At the time of the May 2, 1996 settlement conference, OTS's workers' compensation lien totaled $52,540.40, representing $27,667.80 in medical and indemnity payments and $24,873.60 in permanent partial disability benefits. At the May 2, 1996 settlement conference, Amantiad was represented by his "tort action" attorney, Melvin Agena; however, Stephen Hioki, his workers' compensation attorney, was not present. ³ The following exchange occurred at the May 2, 1996 hearing:

(Emphases and brackets added.)

On May 24, 1996, Amantiad executed a "Release and Settlement Agreement" (hereinafter referred to as the "May 24, 1996 Agreement"), which provided:

KNOW ALL MEN BY THESE PRESENTS

That the undersigned MICHAEL S. AMANTIAD, for and in consideration of the sum of TWENTY-FIVE THOUSAND AND NO/100 DOLLARS ($25,000.00) to him paid by CHRISTOPHER ODUM, ALAMO RENT-A-CAR, INC. and THE CONTINENTAL INSURANCE COMPANY (hereinafter referred to as the "Releasees") and receipt of which is hereby acknowledged, has released, acquitted and discharged, and by these presents does for himself, his heirs, executors, administrators, and assigns, release, acquit and forever discharges the said Releasees, their respective heirs, executors, administrators, successors, and assigns, from and on account of any and all claims, liens, controversies, actions, causes of action, liability and liabilities, demands or damages of whatsoever name or nature, whether at law or in equity, in any manner arisen, including any and all claims or liens by other parties, including but not limited to any Workers' Compensation lien of OAHU TRANSIT SERVICES, INC., under the provisions of Chapter 386, Hawaii Revised Statutes, arising or to grow out of an and all incidents or matters from the beginning of the world to the date of these presents and thereafter relating in any way to an accident occurring on or about February 3, 1993 in the County of Honolulu, State of Hawaii, all as more specifically set forth in that certain lawsuit filed by Plaintiff MICHAEL S. AMANTIAD in the First Circuit [Court], State of Hawaii, designated as Civil No. 95-1011-03 on or about March 22, 1995.

IT IS DEFINITELY UNDERSTOOD AND AGREED that the foregoing payment is by way of compromise and to terminate any and all claims, liens, actions or suits for injuries, damages or expenses of whatsoever nature, known or unknown, in any way growing out of or which may hereafter in any way grow out of or be connected with said incident, including any and all claims or liens by other parties, including but not limited to the Workers' Compensation lien of OAHU TRANSIT SERVICES, INC., and is not an admission by the said Releasees of any liability whatsoever for injuries sustained by the undersigned or for any resulting damages to the undersigned. The undersigned understands that in accepting the foregoing consideration and executing this Release, it is specifically agreed that this release shall be a complete bar to all claims or liens, including but not limited to the Workers' Compensation lien of OAHU TRANSIT SERVICES, INC., for injury to the person of the undersigned of whatsoever name or nature resulting or to result from the said incident.

IT IS FURTHER UNDERSTOOD AND AGREED that this release shall operate as a joint tortfeasor release within the meaning of Sections 663-11 through 663-17 of the Hawaii Revised Statutes, and shall within the meaning of Section 663-14 of the Hawaii Revised Statutes, operate to reduce by the extent of the pro rata share of any liability of Defendant CHRISTOPHER ODUM, ALAMO RENT-A-CAR, INC. and THE CONTINENTAL INSURANCE COMPANY or by the amount of the consideration paid for this Release, whichever shall be greater, any damages, judgment, or award hereafter recovered or recoverable by Plaintiff MICHAEL S. AMANTIAD against any other tortfeasor by reason of the aforementioned incident, all as more particularly set forth in Civil No. 95-1011-03.

THE UNDERSIGNED DOES HEREBY STIPULATE AND AGREE, for the foregoing consideration, to indemnify, defend, and forever hold harmless the said Releasees, their respective heirs, executors, administrators, successors, and assigns, against loss or liability from any and all claims, liens, demands or actions that have been or may be hereafter at any time made or brought against the said Releasees, their respective heirs, executors, administrators, successors, and assigns, by the undersigned or by anyone acting on his behalf or holding by or through him or by anyone else, including any and all claims or liens by other parties, including but not limited to the Workers' Compensation lien of OAHU TRANSIT SERVICES, INC., for damages on account of or in connection with any injuries sustained or which may be sustained by the undersigned in consequence of the aforesaid incident; and the undersigned expressly agrees to defend the said Releasees, their respective heirs, executors, administrators, successors, and assigns, against any and all claims, liens, demands or actions that have been or may be instituted against the said Releasees, their respective heirs, executors, administrators, successors, and assigns, including but not limited to any Workers' Compensation lien of OAHU TRANSIT SERVICES, INC., on account of or in connection with any injury sustained or which may be sustained by the undersigned in consequence of the aforesaid incident.

Apparently, in conjunction with Amantiad's release, OTS executed a "Consent to Settlement Agreement and Release" (hereinafter referred to as the "Consent Agreement"), ⁴ providing:

WHEREAS, OAHU TRANSIT SERVICES, INC. (hereinafter "Employer/Carrier") have paid workers' compensation benefits to or on behalf of MICHAEL S. AMANTIAD and in consideration of a reimbursement of $13,000.00 pursuant to Section 386-8, Liability of Third Person, Hawaii Revised Statutes, Employer/Carrier...