In re: Petition of Avilla, Villanueva, and Biddinger v. Ito

525 P.3d 707, 152 Haw. 258
CourtHawaii Intermediate Court of Appeals
DecidedMarch 16, 2023
DocketCAAP-18-0000799
StatusPublished

This text of 525 P.3d 707 (In re: Petition of Avilla, Villanueva, and Biddinger v. Ito) 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
In re: Petition of Avilla, Villanueva, and Biddinger v. Ito, 525 P.3d 707, 152 Haw. 258 (hawapp 2023).

Opinion

NOT FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

Electronically Filed Intermediate Court of Appeals CAAP-XX-XXXXXXX 16-MAR-2023 07:51 AM Dkt. 114 MO

NO. CAAP-XX-XXXXXXX

IN THE INTERMEDIATE COURT OF APPEALS OF THE STATE OF HAWAI#I

IN THE MATTER OF THE PETITION OF TEHINE AVILLA, JOHN VILLANUEVA, AND FRANKLIN BIDDINGER, Petitioners-Appellants, v. GORDON I. ITO, INSURANCE COMMISSIONER, DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS, STATE OF HAWAI#I, Appellees-Appellees, and UNITED HEALTHCARE INSURANCE COMPANY, DBA EVERCARE, Respondent-Appellee

APPEAL FROM THE CIRCUIT COURT OF THE FIRST CIRCUIT (CIVIL NOS. 18-1-0060-01, 18-1-0061-01, AND 18-1-0062-01)

MEMORANDUM OPINION (By: Ginoza, Chief Judge, Nakasone, Chan, JJ.) In this secondary appeal, Appellants-Petitioners/ Appellants Tehine Avilla (Avilla), John Villanueva (Villanueva) and Franklin Biddinger (Biddinger) (collectively, Appellants) appeal from separate "Order[s] Correcting and Affirming Commissioner's Award of Attorney Fees and Costs" and Final Judgments, entered on September 18, 2018, by the Circuit Court of the First Circuit (Circuit Court),1 following remand from this court's prior decision in Harrison v. Ito, Nos. CAAP-XX-XXXXXXX,

1 The Honorable Keith K. Hiraoka presided. NOT FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

CAAP-XX-XXXXXXX, CAAP-XX-XXXXXXX, 2015 WL 4067205 (App. June 30, 2015) (mem.), aff'd, Nos. SCWC-XX-XXXXXXX, SCWC-XX-XXXXXXX, SCWC-XX-XXXXXXX, 2016 WL 5239646 (Haw. Sept. 22, 2016) (SDO).2 Appellants were enrollees in managed care plans administered by Appellee-Respondent/Appellee United Healthcare Insurance Company, dba Evercare (Evercare).3 This joint appeal4 arises out of Appellants' respective challenges to the fees and costs they were awarded by Appellee-Appellee Gordon I. Ito, Insurance Commissioner, Department of Commerce and Consumer Affairs, State of Hawai#i (Commissioner), in connection with external review proceedings. On appeal, Appellants contend that: (1) the Circuit Court erroneously applied an abuse of discretion standard of review to the Commissioner's denial of certain attorney's fees and costs under Hawaii Revised Statutes (HRS) § 432E-6(e),5 rather than a de novo standard of review; and (2) the Commissioner's interpretation and application of HRS § 432E-6(e)

2 The previous appeal in this case, Avilla v. Ito, No. CAAP-12- 0000646, was one of three cases in the consolidated appeal of Harrison v. Ito. In Harrison, we vacated the Circuit Court's dismissal of Appellants' request for judicial review of the Commissioner's award of attorney's fees for lack of jurisdiction, and remanded for a decision on the merits. 2015 WL 4067205, at *4-7. 3 Evercare administers the Quest Expanded Access Medicaid plan that provides medically necessary covered services for aged, blind, or disabled enrollees. See Delos Santos v. Ito, No. CAAP-XX-XXXXXXX, 2023 WL 2200585, at *1 n.5 (App. Feb. 24, 2023) (mem.). Evercare now operates as UnitedHealthcare Insurance Company, Inc. Id. 4 As explained infra, the joint appeal was procedurally improper. 5 The external review statute, HRS § 432E-6, contains an attorney's fees and costs provision in subsection (e) allowing the insurance commissioner discretion to award fees and costs "in connection with the external review under this statute." This section provides: (e) An enrollee may be allowed, at the commissioner's discretion, an award of a reasonable sum for attorney's fees and reasonable costs incurred in connection with the external review under this section, unless the commissioner in an administrative proceeding determines that the appeal was unreasonable, fraudulent, excessive, or frivolous. HRS § 432E-6(e) (2005) (repealed 2011) (emphasis added).

2 NOT FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

to deny the fees and costs at issue was inconsistent with the purpose and intent of the external review statute.6 We hold that the Circuit Court erroneously affirmed the Commissioner's denial of certain attorney's fees and costs, where the Commissioner did not apply the plain language of the statute, and construed the language inconsistent with the purpose and intent of the statute, which we recently set forth in Delos Santos, 2023 WL 2200585, at *10-14. I. BACKGROUND The underlying cases share a common background, where each Appellant appealed Evercare's notice of a proposed reduction in covered home health services (coverage reduction notice) through the external review procedure under HRS Chapter 432E.7 Evercare conducted an internal review upholding its coverage reduction decision in a "final internal determination" against

6 We have restated, reorganized, and consolidated Appellants' points of error and arguments for clarity. Appellants' Opening Brief does not comply with Hawai#i Rules of Appellate Procedure (HRAP) Rule 28. The points of error do not indicate "where in the record" the alleged errors were raised before the Circuit Court. See HRAP Rule 28(b)(4)(iii) (requiring that each point "shall state" where in the record "the alleged error was brought to the attention of the court"). The Opening Brief also contains arguments in the statement of the case and standard of review sections that are not contained in their points of error. See HRAP Rule 28(b)(3) and (b)(5) (setting forth requirements for the statement of the case and standards of review sections, which do not include argument). In view of the policy of deciding cases on their merits, we nevertheless address Appellants' arguments to the extent we can discern them. See Marvin v. Pflueger, 127 Hawai#i 490, 496, 280 P.3d 88, 94 (2012) (internal citations, quotation marks, brackets, ellipses omitted) (addressing cases on their merits despite noncompliance with HRAP Rule 28, "where the remaining sections of the brief provide the necessary information to identify the party's argument"). 7 HRS Chapter 432E, entitled the "Patients' Bill of Rights and Responsibilities Act," governs managed care plans and includes an external review procedure by which the enrollee may pursue a complaint against the managed care plan, in HRS § 432E-6. "'External review' means an administrative review requested by an enrollee under section 432E-6 of a managed care plan's final internal determination of an enrollee's complaint." HRS § 432E-1 (2005).

HRS § 432E-6 was repealed by the 2011 Legislature, to comply with the federal Patient Protection and Affordable Care Act of 2010. See Haw. Med. Serv. Ass'n v. Adams, No. CAAP-XX-XXXXXXX, 2013 WL 4606314, at *1 n.2 (App. Aug. 29, 2013) (SDO); 2011 Haw. Sess. Laws Act 230, § 10 at 746. The current external review law is contained in HRS Chapter 432E, Part IV, entitled "External Determinations." See HRS §§ 432E-31-432E-44.

3 NOT FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER

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Bluebook (online)
525 P.3d 707, 152 Haw. 258, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-petition-of-avilla-villanueva-and-biddinger-v-ito-hawapp-2023.