Cuarisma v. Urban Painters, Ltd.

583 P.2d 321, 59 Haw. 409, 1978 Haw. LEXIS 204
CourtHawaii Supreme Court
DecidedAugust 15, 1978
DocketNO. 5879
StatusPublished
Cited by9 cases

This text of 583 P.2d 321 (Cuarisma v. Urban Painters, Ltd.) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cuarisma v. Urban Painters, Ltd., 583 P.2d 321, 59 Haw. 409, 1978 Haw. LEXIS 204 (haw 1978).

Opinion

OPINION OF THE COURT BY

KIDWELL, J.

This appeal is from a decision of the Labor and Industrial Relations Appeals Board awarding compensation to appellee for both permanent total disability and disfigurement resulting from a work accident. We hold that the awards do not result in overlapping compensation and affirm the decision of the Board. In this opinion, all references to HRS Chapter 386 refer to the statute as it had been amended and was effective on May 1, 1969, the date of appellee’s injury. 1

There is no dispute that appellee’s injury was compensable under the Workers’ Compensation Law, HRS ch. 386. *410 Appellee was awarded lump-sum disfigurement benefits of $1,550 in addition to permanent total disability benefits at a weekly rate of $112.50 commencing May 1,1969. The liability of the employer for payment of the weekly benefits (not including the disfigurement award) is to terminate when a total amount of $35,100 has been paid. Thereafter the weekly payments are to be made by the special compensation fund created by HRS § 386-151. Appellants do not contest the award for permanent total disability or the fact of disfigurement, but contend that an award for disfigurement cannot be made in addition to an award for permanent total disability or in excess of a limit of $35,100 upon the aggregate liability of the employer. The Attorney General, appearing for the fund, denies liability on the part of the fund for the disfigurement award.

I

“Total disability” was defined in HRS § 386-1 as “disability of such an extent that the disabled employee has no reasonable prospect of finding regular employment of any kind in the normal labor market”. Benefits for permanent and temporary total disability were provided by HRS § 386-31, with disability caused by certain injuries such as loss of sight in both eyes, loss of both feet, etc., conclusively deemed permanent and total, but with the permanency and totality of the disability in other cases to be determined from the facts.

“Disability” was defined in HRS § 386-1 as “loss or impairment of a physical or mental function”. Benefits for permanent and temporary partial disability were provided by HRS § 386-32, which specified in subsection (a) the benefit to be awarded in cases of permanent partial disability involving the loss of a designated body member or bodily function. Disfigurement was provided for in § 386-32(a), under the general heading of “permanent partial disability”, as follows:

“Disfigurement. In cases of personal injury resulting in disfigurement the director of labor and industrial relations may, in his discretion, award such compensation as *411 he deems proper and equitable in view of the disfigurement but not to exceed $10,000. Disfigurement is separate from other permanent partial disability and includes scarring and other disfiguring consequences caused by medical, surgical, and hospital treatment of the employee.”

The position of appellants may be stated very simply. Appellants argue that compensation is awarded only for loss of earning capacity and that compensation for total loss of earning capacity necessarily satisfies all claims which may be made under the statute. The differences in the statutory definitions of “total disability”, for which benefits were awarded in this case under § 386-31(a), and “disability”, under which heading in § 386-32(a) the disfigurement award was made, must be dealt with. But before turning to consideration of the structure and history of the Hawaii statute, we must notice that the present dispute is part of a larger debate involving a reexamination of the concepts of workers’ compensation.

The National . Commission on State Workmen’s Compensation Laws, established by the Occupational Safety and Health Act of 1970, has characterized permanent partial disability benefits as the most controversial and complex aspect of workers’ compensation, in large part because of ambiguity in the concepts upon which the benefits are based. The Commission points out that state statutes employ two bases for permanent partial disability benefits. Such benefits may be paid solely because of a physical (including mental) impairment, without regard to the extent of the worker’s disablement to engage in an occupation. On the other hand, benefits may be paid because the worker has a disability to engage in an occupation, which disability may be measured by actual wage loss or by loss in wage-earning capacity. The statutes adopt approaches which combine the impairment and disability bases in different ways, and the same statute may contain more than one of the approaches. Report of the National Commission on State Workmen’s Compensation Laws, U.S. Govt. Printing Office (1972), p. 67.

*412 For impairments which are not specifically named and provided for by statute, a wide range of approaches used in the various state workers’ compensation systems is outlined by the Commission. Benefits for such impairments may be paid only if there is disability, or on a formula which considers both the extent of the impairment and the extent of the resulting disability, or on the more favorable of the impairment and the disability ratings, or separately for each so that the worker may be eligible for both benefits for impairment and benefits for disability. The Commission concludes that reform of the treatment of permanent partial disability benefits is the most pressing and fundamental issue confronting workers’ compensation.

The Hawaii law, in HRS § 386-32(a) under the heading of “permanent partial disability”, incorporates a schedule of benefits for a specific list of injuries, which benefits consist of weekly sums computed as a percentage of the worker’s average weekly wages and are to be paid for designated numbers of weeks regardless of earnings subsequent to the injury. The Commission comments upon such schedules:

It could be argued that the main purpose of such a schedule is to provide benefits for disability, and that impairment is used as the basis for benefits because impairment and disability are closely related. The validity of this argument is questionable because there is no exact relationship between degree of impairment and the extent of wage loss. Some workers with only minor permanent impairments have substantial wage losses. The concert pianist who loses part of one finger is the classic example. Other workers may suffer serious impairments and experience only limited disability. A lawyer might, for example, lose an arm without permanent loss of earning capacity. Id. p. 68.

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Cite This Page — Counsel Stack

Bluebook (online)
583 P.2d 321, 59 Haw. 409, 1978 Haw. LEXIS 204, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cuarisma-v-urban-painters-ltd-haw-1978.