SCI Management Corp. v. Sims

71 P.3d 389, 101 Haw. 438
CourtHawaii Supreme Court
DecidedJuly 9, 2003
Docket24485
StatusPublished
Cited by27 cases

This text of 71 P.3d 389 (SCI Management Corp. v. Sims) 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
SCI Management Corp. v. Sims, 71 P.3d 389, 101 Haw. 438 (haw 2003).

Opinions

Opinion of the Court by

LEVINSON, J.

The defendants-appellants Darryllynne Sims and Tammy Quinata [hereinafter, “the complainants”]; Hairy Yee, Faye Kennedy, Jack Law, June Motokawa, and Allyeyn Hiki-da Tasaka, in their official capacities as Commissioners of the Hawai'i Civil Rights Commission, Department of Labor & Industrial Relations, State of Hawai'i (HCRC) [hereinafter, “the commissioners”]; and William D. Hoshijo, in his official capacity as Executive Director of the HCRC [hereinafter, “the executive director”] [hereinafter, collectively, “the defendants”], appeal from: (1) the order granting summary judgment in favor of the plaintiffs-appellees SCI Management Corp., Hawaiian Memorial Park Cemetery, Hawaiian Memorial Life Plan, Ltd. dba Borthwick [441]*441Mortuaries, and Derek Kim [hereinafter, “the plaintiffs”], filed on July 25, 2001; (2) the final judgment, filed on July 25, 2001 in favor of the plaintiffs; (3) the order denying the defendants Harry Yee, Paye Kennedy, Jack Law, June Motokawa, and Allyeyn Hiki-da-Tasaka’s and the executive director’s [hereinafter, collectively, “the HCRC defendants”] motion for reconsideration, filed on September 24, 2001; and (4) the order denying the HCRC defendants’ motion to stay the circuit court’s injunction, filed on September 24, 2001, all entered by the circuit court of the first circuit, the Honorable Dan T. Kochi presiding.

The complainants argue on appeal that the circuit court erred in: (1) granting summary judgment in favor of the plaintiffs, on the bases that (a) the plaintiffs had waived any right to a jury trial that they otherwise might have had by virtue of an arbitration clause contained in each complainant’s employment contract with the plaintiffs, which required the parties to the contracts to arbitrate any employment disputes, including allegations of discrimination; and (b) Hawai‘i Revised Statutes (HRS) § 368-12 (1993)1 and Hawai'i Administrative Rules (HAR) Rule 12-46-20 (1993),2 which provide a eom-plamant before the HCRC, but not a respondent, with the option of pursuing his or her. claim in circuit court, do not, contrary to the circuit court’s conclusion, violate a respondent’s constitutional right to a jury trial as guaranteed by article I, section 13 of the Hawai'i Constitution;3 and (2) granting plaintiffs injunctive relief—specifically, enjoining the proceedings before the HCRC involving the plaintiffs until such time as they are permitted to “opt out” of the proceedings—on the basis that injunctive relief is not available on a motion for.summary judgment.

The HCRC defendants contend that the circuit court erred in granting summary judgment in favor of the plaintiffs, on the bases (1) that the right of a complainant to opt out of the HCRC process and proceed in circuit court under HRS § 368-12, see supra note 1, and HAR 12-46-20, see supra note 2, does not implicate the right to a jury trial pursuant to article I, section 13 of the Ha-wai'i Constitution, see supra note 3, nor permit similarly situated classes, of persons unequal access to a jury trial and (2) that, even if it did, HRS chapter 368 does not violate the equal protection clause of the Hawai'i Constitution.4

[442]*442The plaintiffs urge this court to affirm the judgment and orders of the circuit court on the following bases: (1) that the plaintiffs never waived their right to challenge the constitutionality of HRS chapter 368; (2) that the question whether the arbitration agreements between the plaintiffs and each of the complainants constituted a valid waiver of the plaintiffs’ right to a jury trial was not properly before the circuit court; (3) that the defendants had argued below that the arbitration agreements were invalid and/or unenforceable; (4) that HRS chapter 368 violates article I, sections 5 and 13 of the Hawai'i Constitution, see supra notes 3 and 4; and (5) that the circuit court properly enjoined the proceedings before the HCRC in order to prevent the loss of the plaintiffs’ constitutional right to a jury trial with respect to the complainants’ common law damage claims that were pending before the HCRC.

For the reasons discussed infra in section III, we hold: (1) that the complainants are estopped from attempting to enforce any arbitration agreements in the circuit court; and (2) that the plaintiffs are not entitled to opt out of the proceedings before the HCRC; but (3) that, after the conclusion of the HCRC proceedings, the plaintiffs are entitled to a jury trial with respect to any common law damage claims for which they are found to be liable by the HCRC. Accordingly, we vacate the circuit court’s orders and judgment and remand the case for further proceedings consistent with this opinion.

I. BACKGROUND

A. RS Chapter 368

This appeal arises from a complaint filed in the HCRC by the complainants pursuant to HRS chapter 368 (1993 & Supp.1998). The legislature enacted HRS chapter 368 in 1988 in order to “provide a mechanism which provides for a uniform procedure for the enforcement of the State’s discrimination laws.” HRS § 368-1 (1993). The HCRC has “jurisdiction over the subject of discriminatory practices made unlawful by chapters 489, 515, part I of chapter 378, and ... chapter [368]. Any individual claiming to be aggrieved by an alleged unlawful discriminatory practice may file with the ... executive director a complaint in writing[.]” HRS § 368-11(a) (1993). The executive director is required to investigate the complaint and determine whether there is “reasonable cause to believe that chapter 489, 515, part I of 378, or ... chapter [368] has been violated.” HRS § 368-13(a) (1993).5 If the executive director determines that there is.no reasonable cause, he or she shall promptly notify the parties in writing, and the complainant may bring a civil action. HRS § 368-13(c) (1993). On the other hand, if the executive director determines that there is reasonable cause, he or she shall “immediately endeavor to eliminate any alleged unlawful discriminatory practice by informal methods such as conference, conciliation, and persuasion.” HRS § 368-13(d) (1993). If the executive director is unable to resolve the problem by informal means within one hundred eighty days of the filing of the complaint and the HCRC has not granted an extension of time, the executive director shall “demand that the respondent cease the unlawful discriminatory practice.” HRS § 368-13(e) (1993).

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Bluebook (online)
71 P.3d 389, 101 Haw. 438, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sci-management-corp-v-sims-haw-2003.