Smith v. State, Department of Labor & Industrial Relations

907 P.2d 101, 80 Haw. 150, 1995 Haw. LEXIS 85
CourtHawaii Supreme Court
DecidedNovember 6, 1995
Docket17215
StatusPublished
Cited by12 cases

This text of 907 P.2d 101 (Smith v. State, Department of Labor & Industrial Relations) 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
Smith v. State, Department of Labor & Industrial Relations, 907 P.2d 101, 80 Haw. 150, 1995 Haw. LEXIS 85 (haw 1995).

Opinion

MOON, Chief Justice.

In this workers’ compensation case, respondent-appellant Myra P. Smith, employed by petitioner-appellee, employer/self-insured *151 State of Hawaii, Department of Labor and Industrial Relations (DLIR), suffered injuries while crossing a public street between her workplace at the DLIR’s offices and the lot where she parked her car. Smith applied for workers’ compensation benefits, and the DLIR’s Disability Compensation Division (DCD) granted her claim, holding that Smith’s injuries arose out of and in the course of her employment. The DLIR appealed, and the Labor and Industrial Relations Appeals Board (LIRAB) reversed the DCD, holding that Smith’s injuries did not arise out of and in the course of her employment and were therefore not compensable. Smith appealed.

On appeal, the Intermediate Court of Appeals (ICA) reversed the LIRAB, holding that Smith’s injuries were compensable because they arose out of and in the course of her employment. Smith v. State of Hawai’i, Dept. of Labor and Indus. Rels., No. 17215 (Haw.App. Dec. 6, 1994). We granted certio-rari and now hold that: (1) injuries suffered by employees while going to or from work arise out of and in the course of the employee’s employment if (a) the injury occurs on the employer’s premises, and (b) the employee’s presence on the employer’s premises was required by the nature of the employee’s employment; (2) a parking lot owned, maintained, or controlled by an employer is considered part of the employer’s premises for purposes of determining whether an employee’s injury suffered in a parking lot arises out of and in the course of the employee’s employment; and (3) an injury suffered by an employee in a public street, sidewalk, or other off-premises location that is on a direct and/or necessary route between the employer’s main premises and the parking lot owned, maintained, or controlled by the employer also arises out of and in the course of the employee’s employment. Because the parking lot in the present case was not owned, maintained, or controlled by the DLIR and does not qualify as part of the DLIR’s premises, we hold that the injuries suffered by Smith while en route between the DLIR’s offices and the parking lot where she parked her car did not arise out of and in the course of her employment. Accordingly, we reverse the holding of the ICA and order depublication of the ICA’s opinion in the present case.

I. BACKGROUND

At the time of her injury, Smith was employed by the DLIR as an employment interviewer in offices located in the Kaheka Professional Center at 1481 South King Street in Honolulu. Previously, Smith had been working at another location, but had agreed to relocate to the DLIR’s Kaheka Professional Center location with the understanding that parking was available for her to rent at her expense.

The DLIR’s office space lease for the Kaheka Professional Center provided the DLIR with the option to rent up to twenty stalls for parking officially-marked State vehicles in the neighboring Hale Kaheka Condominium building parking lot (Hale Kahe-ka), located across Liona Street from the Kaheka Professional Center. The lease also provided the DLIR’s employees with the option to rent up to fifty stalls to park their personal vehicles, all at a preferred rate of $45.00 per month as opposed to the prevailing rate of $50.00 per month, in the same lot.

Prior to September 1990, the State Department of Human Services, Welfare Division (DHS), occupied the office space in the Kaheka Professional Center currently occupied by the DLIR, and, operating under identical parking provisions in its office space lease, the DHS rented fifteen parking stalls in Hale Kaheka for officially-marked State vehicles. In September 1990, the DHS relocated, and the DLIR took over the office space previously occupied by the DHS, but the DLIR did not exercise the lease option to rent parking stalls in Hale Kaheka for officially-marked State vehicles. Less than fifty DLIR employees exercised the option to rent stalls in Hale Kaheka for their personal vehicles.

Upon her relocation to the Kaheka Professional Center location, the DLIR arranged for Smith to meet with Hale Kaheka’s building manager, and Smith contracted with the manager to rent a parking stall in Hale Kaheka at the $45.00 per month rate. Parking was on a first-come, first-served basis, *152 and Smith did not have an assigned stall. Smith made all payments for parking directly to Hale Kaheka.

On October 22, 1990, after completing her normal work shift, Smith left the office and proceeded to Hale Kaheka to retrieve her car. As Smith stepped off the sidewalk to cross Liona Street, she fell, breaking her left leg and spraining her left ankle.

On November 20,1990, Smith filed a workers’ compensation claim, and a hearing was held before the DCD on July 9, 1991. Smith argued that her injuries arose out of and in the course of her employment and were therefore compensable because: (1) she was parked in an employer-designated parking area for employees, and, as an employee, she was entitled to a discounted parking rate; (2) she was traveling in the most direct route from her office to the designated parking area; (3) the parking stall, located in a private parking lot, was available pursuant to the DLIR’s office space lease; and (4) the available parking provided by the employer resulted in a mutual benefit to Smith and the DLIR because Smith was able to use private transportation to commute to work, which was personally necessary so she could drop her children off on her way to work, and the DLIR would be reasonably assured that Smith would be able to report to work on a regular basis without having transportation problems.

By decision dated September 6, 1991, the DCD held that Smith’s injuries arose out of and in the course of her employment with the DLIR. The DCD paid special attention to the degree of control exerted by the employer over the parking lot, and stated:

Based on the information on file, the Director finds that employer leases business offices from the landlord which entitles employer to selected parking spaces from the lease agreement. The Director agrees that there is a mutual benefit to employer and to its employees with the available parking. Although employer does not physically operate the parking lot, employer has control or right of control as to who may utilize the allotted parking spaces to employer. Therefore, the Director does not find the parking lot to be totally private in nature. Because the place of employment and the designated area for the employees is determined by the lease agreement reached between the employer [and] the landlord, the Director finds a special risk to employees who have to travel over the public street to get to the assigned parking area. The Director finds the principle of passage argument applies. Although employer does not physically own the parking lot, employer controls who can utilize the parking stalls available as a result of employer’s rental of the business office space.

The DLIR timely appealed the DCD’s decision to the LIRAB, which held a hearing on May 22, 1992. By decision dated May 26, 1993, the LIRAB reversed the DCD’s decision, concluding that, based on its review of the evidence, Smith’s injuries did not arise out of and in the course of her employment with the DLIR. Specifically, the LIRAB stated:

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Bluebook (online)
907 P.2d 101, 80 Haw. 150, 1995 Haw. LEXIS 85, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-state-department-of-labor-industrial-relations-haw-1995.