Survivors of Cariaga v. Del Monte Corp.

638 P.2d 1386, 2 Haw. App. 672, 1982 Haw. App. LEXIS 100
CourtHawaii Intermediate Court of Appeals
DecidedJanuary 18, 1982
DocketNO. 7754; CASE NO. AB 79-59 (2-76-21225)
StatusPublished

This text of 638 P.2d 1386 (Survivors of Cariaga v. Del Monte Corp.) 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
Survivors of Cariaga v. Del Monte Corp., 638 P.2d 1386, 2 Haw. App. 672, 1982 Haw. App. LEXIS 100 (hawapp 1982).

Opinion

OPINION OF THE COURT BY

BURNS, J.

This is a workers’ compensation case which involves an interpretation of the portion of Hawaii Revised Statutes (HRS) § 91-11 (1976) which says, “Whenever in a contested case the officials of the agency who are to render the final decision have not heard and examined all of the evidence. . . .” Does the phrase “the officials of the agency who are to render the final decision” refer to all of the members of the Labor and Industrial Relations Appeals Board (LIRAB)1 or only to the members of the LIRAB who actually render [673]*673the final decision? We hold that it refers to all of the members of the LIRAB.

Claimants-Appellants filed a HRS § 386-3 (1976) Dependents’ Claim for Compensation with the Workers’ Compensation Division of Hawaii’s Department of Labor and Industrial Relations, alleging that the decedent’s suicide by hanging was caused by his “depression as a result of being suspended from his job for no apparent reason.” The Department’s Director determined that the fatality did not arise out of and in the course of employment, and appellants appealed to the LIRAB pursuant to HRS § 386-87 (1976).

The de novo appeal hearing was attended by two of the three full-time LIRAB members. At the conclusion of the hearing, the following conversation occurred:

[COUNSEL FOR EMPLOYER]: I will for the record waive the third member here.
CHAIRMAN: Oh, yes, I am sorry. I neglected to do that.
[COUNSEL FOR CLAIMANTS]: I am not sure if I will waive that now. I’d like to —
CHAIRMAN: Okay, in that event we will look at it and we will issue a proposed decision and you want an opportunity to file exceptions to that. Anything else?
[COUNSEL FOR EMPLOYER]: Nothing further.

Thereafter, notwithstanding its Chairman’s commitment, the LIRAB did not issue a proposed decision and did not provide an opportunity for the filing of exceptions. Instead, it issued a Decision and Order signed by the two members who attended the hearing, affirming the Director’s Decision and Order.

Claimants raise two issues on appeal:

1. The LIRAB erred in failing to satisfy the applicable [674]*674requirements of HRS § 91-11 (1976) prior to issuing its Decision and Order;
2. The LIRAB erred in concluding that decedent’s state of depression and resultant death were not related to his employment.

The LIRAB is an agency subject to the requirements of the Administrative Procedure Act (HRS chapter 91,1976, as amended); Cazimero v. Kohala Sugar Co., 54 Haw. 479, 510 P.2d 89 (1973); Ras v. Hasegawa, 53 Haw. 640, 500 P.2d 746 (1972).

HRS § 91-11 (1976) provides as follows:

§91-11 Examination of evidence by agency. Whenever in a contested case the officials of the agency who are to render the final decision have not heard and examined all of the evidence, the decision, if adverse to a party to the proceeding other than the agency itself, shall not be made until a proposal for decision containing a statement of reasons and including determination of each issue of fact or law necessary to the proposed decision has been served upon the parties, and an opportunity has been afforded to each party adversely affected to file exceptions and present argument to the officials who are to render the decision, who shall personally consider the whole record or such portions thereof as may be cited by the parties.

If the third member of the LIRAB who was not present at the hearing had signed the LIRAB’s Decision and Order, then unquestionably HRS § 91-11 required the LIRAB to comply with 91-1 l’s procedures before it rendered its final decision. In Re Terminal Transportation, Inc., 54 Haw. 134, 504 P.2d 1214 (1972).

However, the Employer contends that HRS § 91-11 allows the LIRAB to avoid 91-1 l’s requirements if the member who was not present at the hearing neither participates in the decision-making process nor in the final decision. It argues that 91-11 does not apply here because the two officials rendering the final decision heard and examined all of the evidence, and the third official who did not hear and examine all of the evidence did not participate in the decision.

Essentially, the Employer contends that LIRAB is entitled to function as three two-person panels2 without the burden of complying with 91-1 l’s requirements.

[675]*675Section 91-11, HRS, is ambiguous to the extent that we do not know whether the phrase “the officials of the agency who are to render the final decision” refers to (1) all of the members of the agency or (2) only the members of the agency who actually render the final decision. We opt for interpretation (1).

In this situation legislative history gives some insight into but does not answer the ambiguity.

Section 91-11, HRS, became law via Act 103, 1961 Session (H.B. No. 5, H.D. 1). It had been under consideration in the 1959 First Special Session as H.B. No. 34 and in the 1960 Budget Session as H.B. No. 11. The 1959 Legislature noted that the basic structure for H.B. No. 34, H.D. 1, was “the first tentative draft of the revision of the Model State Administrative Procedure Act whiqh was drawn up at the meeting of the National Conference of Commissioners on Uniform State Laws on August 17-22, 1959. . . .”3

House Bill No. 34’s version of section 11 began as follows: “Whenever in a contested case a majority of the officials of the agency who are to render the final decision have not heard and examined all of the evidence. . . .” That language was amended in H.B. No. 34, H.D.l. The committee report explains the amendment: “The phrase ‘majority of ’ in the original bill has been deleted. The reason for the deletion is to insure that each member of an agency rendering a decision will be personally informed as to the evidence in the case including the hearing of witnesses and examination of all of the evidence in the case; otherwise there should be a proposed decision given to the parties.”4

When they omitted the phrase “majority of ” from section 11, the legislature was copying the first tentative draft of the revision of the Model State Administrative Procedure Act which had also deleted the phrase. The Model Act’s Comment tells us why it was changed:

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Related

Dependents of Cazimero v. KOHALA SUGAR COMPANY
510 P.2d 89 (Hawaii Supreme Court, 1973)
Application of Terminal Transportation, Inc.
504 P.2d 1214 (Hawaii Supreme Court, 1972)
Survivors of Timothy Freitas v. PAC. CONTRACTORS
613 P.2d 927 (Hawaii Intermediate Court of Appeals, 1980)
In Re Kauai Electric Division of Citizens Utilities Co.
590 P.2d 524 (Hawaii Supreme Court, 1978)
Lawhead v. United Air Lines
584 P.2d 119 (Hawaii Supreme Court, 1978)
Chung v. Animal Clinic, Inc.
636 P.2d 721 (Hawaii Supreme Court, 1981)
Ras v. Hasegawa
500 P.2d 746 (Hawaii Supreme Court, 1972)

Cite This Page — Counsel Stack

Bluebook (online)
638 P.2d 1386, 2 Haw. App. 672, 1982 Haw. App. LEXIS 100, Counsel Stack Legal Research, https://law.counselstack.com/opinion/survivors-of-cariaga-v-del-monte-corp-hawapp-1982.