Diaz v. Oahu Sugar Co.

883 P.2d 73, 77 Haw. 152, 1994 Haw. LEXIS 81
CourtHawaii Supreme Court
DecidedOctober 24, 1994
Docket16281
StatusPublished
Cited by11 cases

This text of 883 P.2d 73 (Diaz v. Oahu Sugar Co.) 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
Diaz v. Oahu Sugar Co., 883 P.2d 73, 77 Haw. 152, 1994 Haw. LEXIS 81 (haw 1994).

Opinion

RAMIL, Justice.

Claimant-Appellant Francisco B. Diaz appeals the decision and order of the Labor and Industrial Relations Appeals Board (Appeals Board) terminating his workers’ compensation benefits. Diaz contends that the Appeals Board: (1) erred in concluding that the April 7, 1989 non-industrial motor vehicle accident caused an intervening injury that terminated his employer’s workers’ compensation liability; and (2) failed to apply the statutory presumption that a worker’s claim is a covered work injury under Hawaii Revised Statutes (HRS) § 386-85(1) (1985). We disagree and affirm the decision and order of the Appeals Board.

I. FACTS

In 1986, Diaz was employed by Employer-Appellee Oahu Sugar Company (Oahu Sugar). On June 25, 1986, while “cutting seed” on the job, Diaz lost his balance and suffered an injury to his lower back, left hand, and left hip. Diaz subsequently complained of pain on his left side, and was examined by a physician. Diaz’s medical expenses and temporary disability benefits were fully paid by his self-insured employer, Oahu Sugar.

Diaz was given several diagnostic tests to determine the extent of his injuries, including x-rays, computer tomography (CT) scans of his spine, and psychological evaluations. The results of the x-rays were negative; the CT scans showed some “bulging” and “protrusion” of several spinal disks, but no evidence of “herniation”; and several psychological evaluations suggested that Diaz was suffering from “a psychophysical disorder,” disproportionate to his actual physical injuries..

On July 22, 1986, Diaz’s attending physician, Dr. Salvador Cecilio, reported that he was unable to find an objective physical pathology to explain Diaz’s symptoms. Dr. Cecilio treated Diaz “conservatively” with medication and referred him to physical therapy. Diaz continued physical therapy throughout the remainder of 1986. On January 9, 1987, Dr. Cecilio reported that Diaz was able to return to light duty. On February 10, 1987, Dr. Cecilio reiterated his belief that Diaz could return to light duty and that his ailments appeared to be mainly psychological.

From March 1987 through March 1989, Diaz periodically sought re-evaluation of his condition by Dr. Cecilio. However, during this two-year period, Dr. Cecilio repeatedly opined that Diaz’s condition was “stable and stationary” and that Diaz was able to return to light duty work. On March 10, 1989, Dr. Cecilio reported that the “[patient’s] complaints are essentially the same.... I really do not know what else I can do for him.... [I]n my opinion, the best treatment would be to return him to some type of light duty, get him out of the house and be productive.”

On April 7, 1989, Diaz was involved in a non-industrial automobile accident in which his car was “rear-ended.” Subsequently, Diaz consulted Dr. Cecilio for increased neck and back pain, which radiated to his hands and feet, and for “occipital” headaches. Dr. Cecilio diagnosed cervical and lumbosacral sprains and aggravation of pre-existing neck and back conditions. Dr. Cecilio again referred Diaz to physical therapy and suggested that Diaz consult Dr. Ramon Sy to evaluate newly arisen ear complaints. In February 1992, Diaz also underwent further psychological evaluation by Dr. Vincent Onorato.

In response to an inquiry from Diaz’s auto insurer, Allstate Insurance Company (Allstate), Dr. Cecilio reported in a letter dated October 16, 1989, that he found it very difficult to apportion responsibility for Diaz’s current symptoms. Dr. Cecilio stated that his “best shot” would be to allocate fifty percent to the pre-existing incidents and fifty percent to the accident. Consequently, Allstate paid only fifty percent of Diaz’s medical expenses.

Diaz attempted to recover the other fifty percent from Oahu Sugar, which, until the *154 accident, had been paying Diaz’s medical bills as a result of the June 25, 1986 work injury pursuant to HRS Chapter 386. By letter dated November 2, 1990, Oahu Sugar declined to pay any part of Diaz’s medical bills accrued after the accident, contending that the accident was a “subsequent, intervening traumatic event for which Employer and Insurance Adjuster should not be responsible ... until the Claimant [has] reached pre-automobile accident status.”

On January 29,1991, Diaz filed an employee’s claim for workers’ compensation benefits to contest Oahu Sugar’s denial of payment of his post-accident medical expenses. On May 1,1991, the Department of Labor and Industrial Relations (DLIR) held a hearing on Diaz’s claim. At the hearing, Diaz argued that Oahu Sugar remained responsible for the fifty percent of his medical costs not paid by Allstate. Diaz based his argument on Dr. Cecilio’s apportionment contained in his October 16, 1989 letter to Allstate and on a letter dated October 30, 1989 from Dr. Robert Hughes, in which he agreed with Dr. Cecilio’s apportionment.

Conversely, Oahu Sugar argued that the accident constituted a new, non-industrial injury for which it was not responsible under the workers’ compensation law. Oahu Sugar relied on a medical report by Dr. Roland Lichter, in which Diaz stated that the accident had greatly increased his symptoms in the low back, legs, left arm, and hand, and in which he also stated that he had not returned to pre-accident injury status. Oahu Sugar also relied on Dr. Cecilio’s various reports prior to the accident, in which he opined that Diaz’s condition had improved and stabilized, and in which he recommended that Diaz return to light duty.

On June 26, 1991, the DLIR issued its findings of fact and decision, holding that Oahu Sugar was not liable under HRS chapter 386 for any medical payments to Diaz after the April 7,1989 motor vehicle accident. The DLIR, however, also held that Oahu Sugar must continue paying temporary total disability benefits to Diaz “terminating at such time as is determined by the Director that such disability' has ended.”

On July 3, 1991, Diaz filed a notice of appeal with the Appeals Board pursuant to HRS § 386-87 (1985). 1 The parties waived a hearing before the Appeals Board and agreed to have the case decided on the record and on their respective written statements. The Appeals Board listed the following issues on appeal: (1) whether Oahu Sugar’s liability for medical benefits was properly terminated on April 6, 1989; and (2) whether temporary total disability benefits should be terminated on April 6, 1989.

On June 16, 1992, the Appeals Board issued its decision and order in the case. The Appeals Board made twenty-two express findings of fact and concluded as a matter of law that “the April 7, 1989 non-industrial motor vehicle accident caused an intervening injury that terminates Oahu Sugar’s liability for medical benefits as of April 6, 1989. Accordingly, Oahu Sugar is relieved of its responsibility for medical benefits, until such time when Claimant returns to pre-motor vehicle accident status.” The Appeals Board further concluded that the DLIR mistakenly continued the payment of temporary total disability benefits to Diaz, and held that “the 1989 intervening injury also terminates temporary total disability benefits.”

This timely appeal followed.

II. DISCUSSION

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Bluebook (online)
883 P.2d 73, 77 Haw. 152, 1994 Haw. LEXIS 81, Counsel Stack Legal Research, https://law.counselstack.com/opinion/diaz-v-oahu-sugar-co-haw-1994.