Bright v. First Insurance Co. of Hawaii, Ltd.

983 P.2d 200, 91 Haw. 299, 1999 Haw. App. LEXIS 125
CourtHawaii Intermediate Court of Appeals
DecidedAugust 5, 1999
DocketNo. 22127
StatusPublished

This text of 983 P.2d 200 (Bright v. First Insurance Co. of Hawaii, Ltd.) is published on Counsel Stack Legal Research, covering Hawaii Intermediate Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bright v. First Insurance Co. of Hawaii, Ltd., 983 P.2d 200, 91 Haw. 299, 1999 Haw. App. LEXIS 125 (hawapp 1999).

Opinion

Opinion of the Court by

ACOBA, J.

We hold that under the provisions of Hawaii Revised Statutes (HRS) chapter 431:10C (1993), entitled “the Hawaii Motor Vehicle Insurance Law,” otherwise referred to as the no-fault law (the no-fault law), and HRS chapter 431-.10G (1993 and Supp.1997), entitled “Motorcycle and Motor Scooter Insurance,” a bicyclist who suffers personal injury in an accident with a motorcycle is not entitled to no-fault benefits, but may seek redress for such injuries in a tort action.

In consonance with the foregoing proposition, the Circuit Court of the Fifth Circuit (the court) granted the motion for summary judgment filed by Defendant-Appellee First Insurance Company of Hawaii, Ltd. (Appel-lee) against the claims of Plaintiffs-Appellants Cherie Bright (Cherie), individually and as Guardian Prochein Ami for Kalani Bright, her minor child, (Kalani) (collectively, Appellants). Accordingly, we must affirm the court’s October 5, 1998 order granting the said motion.

I.

The following facts are not in dispute. On June 23, 1994, while riding a bicycle, Kalani was struck by an uninsured motorcycle operated by an unlicensed driver. As a result, Kalani sustained injuries which included a basal skull fracture, permanent hearing loss, and multiple abrasions and lacerations. At the time of the accident, Kalani, as a “resident relative,” was a “covered person” under the “Personal Auto Policy” (the policy) issued by Appellee to Cherie and Benjamin Bright.

A claim for no-fault benefits was filed with Appellee on behalf of Kalani.1 On August 4, 1994, Appellee denied payment of no-fault benefits. The denial of benefits was based solely on a review of the no-fault law. In its letter denying coverage, Appellee explained its denial was based on HRS §§ 43L10C-103(8), (9), and -304(1)(A).2

On June 24, 1997, Appellants filed their complaint against Appellee, alleging outrageous breach of an insurance contract and breach of the covenant of good faith and fair dealing. They prayed for judgment against Appellee for damages and “such other and future relief as [the cjourt deems just and proper.”

Appellee filed a motion for summary judgment on October 31, 1997, pursuant to Hawaii Rules of Civil Procedure (HRCP) Rules 7 and 56(b). It argued that Appellants were not entitled to recovery because both the policy and the no-fault law precluded coverage. In their memorandum opposing Appel-lee’s summary judgment motion, Appellants contended that “[wjhile there may not be genuine issues of fact in this case ..., there are certainly legal issues regarding Kalani[’s] ... entitlement to no-fault coverage which preclude [Appellee’s mjotion for [sjummary [¡judgment from being granted.”

On October 5, 1998, the court issued its order granting Appellee’s summary judgment motion.

II.

An order for summary judgment is reviewed de novo. “On review of a summary judgment proceeding, the standard [appellate] court[s] should apply is identical to that employed by the trial court.” Iuli v. Fasi, 62 Haw. 180, 184, 613 P.2d 653, 656 (1980) (citations omitted). Summary judgment is properly granted when there are no genuine [301]*301issues of material fact and the movant demonstrates that he [or she] is entitled to judgment as a matter of law. Bidar v. Amfac, Inc., 66 Haw. 547, 553, 669 P.2d 154, 159 (1983) (citations omitted).

Appellants do not raise any genuine issues of material fact but base their appeal solely on a question of law. On appeal, Appellants maintain that “[t]he ... court erred in granting Appellee’s [mjotion for [s]ummary £j]udgment and in ruling that [the no-fault law] bars a pedestrian or bicyclist from receiving no-fault benefits.”3

III.

The purpose of the no-fault law, in relevant part, “is to ... [c]reate a system of reparations for accidental harm and loss arising from motor vehicle accidents [.] ” HRS § 431:10C-102(a)(l) (emphasis added). In that connection, HRS § 431:10C-104(a) and (b) require that no-fault insurance be obtained for all “motor vehicles.” HRS § 431:10C-104(a) and (b) state:

(a) Except as provided in [HRS § ] 431:100-105,[4] no person shall operate or use a motor vehicle upon any public street, road or highway of this State at any time unless such motor vehicle is insured at all times under a no-fault policy.
(b) Every owner of a motor vehicle used or operated at any time upon any public street, road or highway of this State shall obtain a no-fault policy upon such vehicle which provides the coverage required by this article and shall maintain the no-fault policy at all times for the entire motor vehicle registration period.

(Emphases added.)

No-fault benefits, however, are only extended to accidental harm arising out of the “operation, maintenance, or use of a motor vehicle.” HRS § 431:10C-303(a) provides that “[i]f the accident causing accidental harm occurs in this State, every person insured under this article, and such person’s survivors, suffering loss from accidental harm arising out of the operation, maintenance, or use of a motor vehicle, has a right to no-fault benefits.” (Emphasis added.)

At the time of the incident, Kalani was not involved in the “operation, maintenance, or use” of his relative’s motor vehicle and therefore was not entitled to no-fault benefits on that basis. Kalani, however, was, by statutory definition, a “pedestrian” who would have been entitled to no-fault benefits were he involved in a “motor vehicle accident.” HRS § 431:10C-304(1)(A) states:

Obligation to pay no-fault benefits. ... Every no-fault insurer shall provide no-fault benefits for accidental harm as follows:
(1) Except as otherwise provided in [HRS § ] 431:100-305®:[5]
(A) In the case of injury arising out of a motor vehicle accident, the insurer shall pay, without regard to fault, to the following persons who sustain accidental harm as a result of the operation, maintenance or use of the vehicle, an amount equal to the no-fault benefits payable for wage loss [302]*302and other expenses to that person ... as a result of the injury:
(i) Any person, including the owner, operator, occupant, or user of the insured vehicle;
(ii) Any pedestrian (including a bicyclist) [.]

(Boldfaced emphases in original; underscored emphases added.)

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Related

Iuli v. Fasi
613 P.2d 653 (Hawaii Supreme Court, 1980)
Bidar v. Amfac, Inc.
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920 P.2d 334 (Hawaii Supreme Court, 1996)
Claim of Bragg v. State Farm Mutual Automobile Insurance Co.
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Cite This Page — Counsel Stack

Bluebook (online)
983 P.2d 200, 91 Haw. 299, 1999 Haw. App. LEXIS 125, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bright-v-first-insurance-co-of-hawaii-ltd-hawapp-1999.