Claim of Maldonado, 9323
Decision Date | 11 May 1984 |
Docket Number | No. 9323,9323 |
Citation | 5 Haw.App. 185,683 P.2d 394 |
Parties | In the Matter of the Claim of Ruperto MALDONADO, Claimant-Appellant, and Transport Indemnity, Respondent-Appellee. |
Court | Hawaii Court of Appeals |
Syllabus by the Court
1. An appellate court's review of the circuit court's review of an administrative agency's decision is based on the right/wrong standard. In determining whether the circuit court's decision was right or wrong, the appellate court applies the appropriate subsection of HRS § 91-14(g) to the agency's decision.
2. Where the language of the statute is ambiguous or of doubtful meaning, the court may resort to extrinsic aids in construing the statute, including its legislative history.
3. A statute should be so construed that, if it can be prevented, no clause, sentence, or word shall be superfluous, void, or insignificant.
4. In computing the insured's entitlement to no-fault monthly wage loss benefits, HRS § 294-5(b) requires the deduction of his total monthly workers' compensation income benefits from the basic statutory no-fault monthly wage loss benefits rather than from his actual monthly wage loss.
5. In the light of its legislative history, HRS § 294-5(b) precludes the stacking of no-fault monthly wage loss benefits on top of the monthly workers' compensation income benefits in excess of the basic statutory no-fault monthly wage loss benefits limit.
Judith Ann Pavey, Honolulu (David C. Schutter, Honolulu, with her on the briefs; Schutter, Pavey, Cayetano, Honolulu, of counsel), for claimant-appellant.
David J. Dezzani, Honolulu (Dewey H. Kim, Jr., Honolulu, with him on the brief; Goodsill, Anderson, Quinn & Stifel, Honolulu, of counsel), for respondent-appellee.
Before BURNS, C.J., and HEEN and TANAKA, JJ.
Claimant Ruperto Maldonado (Maldonado) appeals the circuit court judgment affirming the Insurance Commissioner's (Commissioner) denial of his no-fault wage loss benefit claim against Transport Indemnity (Indemnity). The Commissioner had ruled that since Maldonado was receiving total monthly workers' compensation income benefits 1 which exceeded the basic statutory no-fault monthly wage loss benefits limit, he was ineligible for any no-fault monthly wage loss benefits 2 under Hawaii Revised Statutes (HRS) § 294-5(b) (1976, as amended).
The issue on appeal is whether, in computing Maldonado's entitlement to no-fault monthly wage loss benefits, Maldonado's total monthly income benefits under workers' compensation ($931.66) were properly deducted from the basic statutory no-fault monthly wage loss benefits limit ($800) rather than from his actual monthly wage loss ($1,534). We answer yes and affirm.
In the administrative proceedings, the parties stipulated to the following facts. On August 26, 1980, Maldonado was injured in a motor vehicle accident while operating a bus as a driver for MTL, Inc. (MTL). Thereafter, he was unable to return to work. At the time of the accident, Maldonado's monthly compensation was $1,534. His workers' compensation income benefits totaled $931.66 per month.
Maldonado made a claim to Indemnity, MTL's insurer, for no-fault benefits of $602.34, representing the difference between his actual monthly wage loss and his monthly workers' compensation benefits. The claim was denied based on HRS § 294-5(b) which provides:
All no-fault benefits shall be paid secondarily and net of any benefits a person is entitled to receive because of the accidental harm from workers' compensation laws; provided that this section shall be inapplicable to benefits payable to a surviving spouse and any surviving dependent as provided under section 294-4. If the person does not collect such benefits under the workers' compensation laws by reason of the contest of his right to so collect by the person or organization responsible for payment thereof, the injured person, if otherwise eligible, shall nevertheless, be entitled to receive no-fault benefits and upon payment thereof the no-fault insurer shall be subrogated to the injured person's rights to collect such benefits.
Maldonado subsequently requested a review by the Motor Vehicle Insurance Division of the Department of Regulatory Agencies. 3 The matter was referred to the department's hearings officer for hearing and submission of written findings, conclusions, and recommended order to the Commissioner.
On November 18, 1981, the hearings officer entered his Findings of Fact, Conclusions of Law and Recommended Order (Recommended Order) recommending to the Commissioner that Indemnity's "denial of no-fault benefits was improper." Record at 95.
Upon review of the Recommended Order, the Commissioner entered her Final Decision and Order (Order) on March 16, 1982. The Order rejected the hearings officer's recommendation and concluded that Indemnity's "denial of no-fault benefits was proper." Record at 45.
After the Commissioner's denial of his motion for reconsideration, Maldonado appealed to the circuit court on May 28, 1982, pursuant to HRS §§ 431-68 and 91-14. 4 On February 22, 1983, the circuit court entered its judgment affirming the Commissioner's Order and denial of the motion for reconsideration. After the circuit court's Order Denying Maldonado's Motion for Reconsideration was entered on April 27, 1983, Maldonado appealed.
Our review of the circuit court's review of an agency's decision is based on the "right/wrong standard." Outdoor Circle v. Harold K.L. Castle Trust Estate, 4 Haw.App. 633, 675 P.2d 784 (1983), cert. denied, 67 Haw. 1, 677 P.2d 965 (1984). See also Chock v. Bitterman, 5 Haw.App. 59, 678 P.2d 576 (1984). In determining whether the circuit court's decision was right or wrong, we apply the appropriate subsection of HRS § 91-14(g) to the agency's decision. Since the issue here is whether the Commissioner made an error of law in her construction of HRS § 294-5(b), the standard under HRS § 91-14(g)(4) is applicable.
Maldonado contends that the Commissioner erred since (1) the agency's interpretation of HRS § 294-5(b) is inconsistent with basic subrogation law principles, (2) Hawaii's public policy favors the stacking of benefits in order to fully compensate the injured insured, and (3) the plain language of the statute itself makes clear the legislative intent that "no-fault wage loss benefits are to be excess of any worker's [sic] compensation benefits." Opening Brief at 6.
On the other hand, Indemnity argues that the Commissioner properly interpreted HRS § 294-5(b) since (1) the wording of the section, along with other provisions of Hawaii's Motor Vehicle Accident Reparations Act (No-Fault Act) and the legislative intent, support the interpretation, (2) case law dealing with the issue in other jurisdictions lend additional support, (3) the general principles of subrogation are inapplicable to this particular provision, and (4) public policy in favor of stacking does not mandate it where the contrary legislative intent is clear.
We are cognizant of decisions in other jurisdictions which support both views. See, e.g., Comeau v. Safeco Insurance Company of America, 356 So.2d 790 (Fla.1978); United States Fidelity & Guaranty Co. v. Smith, 580 S.W.2d 216 (Ky.1979) ( ); see also Smelser v. Criterion Insurance Co., 293 Md. 384, 444 A.2d 1024 (1982); Featherly v. AAA Insurance Co., 119 Mich.App. 132, 326 N.W.2d 390 (1982) ( ). The holdings of these cases are largely dependent on each state's particular no-fault legislation. Based on our statute and its underlying legislative history, we agree with the arguments presented by Indemnity.
The parties agree that "secondary" in HRS § 294-5(b) means that workers' compensation income benefits must be paid first and that no-fault wage loss benefits are paid only as to the remaining wage loss not covered under the workers' compensation law. They disagree, however, as to the meaning of the term "net." Maldonado claims that "net" refers to the difference between his total actual monthly wage loss and his monthly workers' compensation income benefits. On the other hand, Indemnity contends that "net" refers to the difference between the latter primary benefits and the statutory no-fault monthly wage loss benefits limit.
"[W]here the language of the statute is ambiguous or of doubtful meaning ... the court may look beyond express language of the statute to ascertain the legislative intent." State v. Tavares, 63 Haw. 509, 511, 630 P.2d 633, 635 (1981). Cf. Barcena v. The Hawaiian Insurance & Guaranty Co., Ltd., 67 Haw. 97, 678 P.2d 1082 (1984). Thus, the court under such circumstances may resort to extrinsic aids in construing a statute, including its legislative history, see In re Hawaiian Telephone Co., 61 Haw. 572, 608 P.2d 383 (1980); Lussier v. Mau-Van Development, Inc. II, 4 Haw.App. 421, 667 P.2d 830 (1983); Educators Ventures, Inc. v. Bundy, 3 Haw.App. 435, 652 P.2d 637 (1982), in order to accomplish its primary objective of ascertaining and giving effect to the intent of the legislature. Survivors of Medeiros v. Maui Land & Pineapple Co., 66 Haw. 290, 660 P.2d 1316 (1983); In re Hawaiian Telephone Co., supra.
The legislative history underlying HRS § 294-5(b) is enlightening. When the legislature first contemplated enacting HRS chapter 294, Hawaii's No-Fault Act, the conference committee report stated that the five purposes of the law were to:
(1) Provide for a speedy, adequate and equitable reparation for those injured or otherwise victimized;
(2) Provide for the stabilization and reduction of motor vehicle liability insurance premium rates;
(3) Provide for insurance coverage for all who require it, at a cost within the reach of every licensed driver;
(4) Provide for a compulsory insurance system;
(5) Provide for adequate regulatory...
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