Survivors of Young v. Island Feeling, Inc.

125 P.3d 476, 109 Haw. 255, 2005 Haw. LEXIS 650
Hawaii Supreme Court·Decided December 28, 2005·No. No. 25661·Published·Cited by 4 cases

Opinion

Opinion of the Court by

DUFFY, J.

In this workers’ compensation death benefits case, Petitioner/Claimant-Appellant Shir-lyn Young (Petitioner) and her son, Bronson Young (Bronson) [hereinafter, collectively, Petitioners], as the survivors of the employee, the late Roy W.C. Young (Young), appealed the February 12, 2003 decision of the Labor and Industrial Relations Board (LIR-AB), which used the date-of-injury maximum weekly benefit rate (MWBR) to calculate their death benefits as opposed to the date-of-death MWBR urged by Petitioners. On March 18, 2005, the Intermediate Court of Appeals (ICA) issued a published opinion affirming the LIRAB’s decision in Young v. Island Feeling, Inc., 109 Haw.App. 287, 125 P.3d 508, 2005 WL 628879 (App. March 18, 2005) [hereinafter, ICA’s Opinion or Young I ]. Petitioners filed a timely application for a writ of certiorari (Application).

We granted Petitioners’ Application for the sole purpose of addressing whether workers’ compensation death benefits are calculated using the MWBR on the date of injury or the date of death. Based on the following, we hold that death benefits are calculated using the MWBR when the right arises: on the date of death.1 Accordingly, we reverse.

I. BACKGROUND

On July 7, 1988, Young, the president and Manager of Island Feeling, Inc., a Hawai'i-based clothing manufacturing company, suffered a ruptured cerebral aneurysm in the course of his employment and lapsed into a semi-comatose state. At the time of his injury, Young was married to Petitioner and together they had a son, Bronson. On November 16, 1988, Petitioner filed for temporary total disability (TTD) workers’ compensation benefits on behalf of her husband. In a decision dated December 5, 1991, the Director of the Department of Labor and Industrial Relations (Director) ordered Young’s employer, Island Feeling, Inc., through its insurance carrier, Transamerica Insurance Company [hereinafter, collectively, Employer], to pay Young TTD benefits.

Hawai'i Revised Statutes (HRS) § 386-31(b) (1985) provides that where an employee suffers a work-related injury which causes temporary total disability, the employer must pay the employee “a weekly benefit at the rate of sixty-six and two-thirds per cent of the employee’s average weekly wages, subject to the limitations on weekly benefit rates prescribed in subsection (a)[.]” Id. Subsection (a) states the following limitation: “Beginning January 1, 1975, and during each succeeding twelve-month period thereafter, not more than the state average weekly wage last determined by the director[.]” HRS § 386-31(a) (1985). Young’s average weekly wage (AWW) at the time of his injury was $644.23. Sixty-six and two-thirds per cent of this amount is $429.51. However, the State AWW in 1988 was $334.00, and the Director limited Young’s TTD benefits accordingly. The LIRAB affirmed this decision on January 18, 1994.

On May 11, 1995, the Director held a follow-up hearing to evaluate updated medical reports regarding Young’s physical condition. [257]*257In a decision dated June 26, 1995, the Director awarded Young permanent total disability (PTD) benefits starting January 10, 1991. The relevant statute for PTD benefits, HRS § 386-31(a) (1993), provides that where a work-related injury causes PTD, the employer must pay the employee “a weekly benefit equal to sixty-six and two-thirds per cent of the employee’s average weekly wages, subject to the following limitation: Beginning January 1, 1975, and during each succeeding twelve-month period thereafter, not more than the state average weekly wage last determined by the direetor[.]” The Director calculated Young’s PTD benefits based upon the date-of-injury MWBR of $334.00 per week. The Director also awarded Young a weekly benefit adjustment of $103.00 beginning January 1, 1992, pursuant to HRS § 386-35 (a) (1) (1993).2

On May 15, 2000, Young died of complications from his work-related injury. On June 23, 2000, Petitioners filed a claim for death benefits as Young’s dependents, under HRS § 386-41 (Supp.2000), including a funeral and burial allowance and a weekly benefit.

On April 19, 2001, the Director held a hearing to determine death benefits for Petitioners. In a decision dated May 14, 2001, the Director calculated their death benefits based on the date-of-injury MWBR of $334.00. Thus, pursuant to HRS § 386-41(a), Petitioners were awarded a total of $5,010.00 for funeral and burial expenses— $3,340.00 for funeral expenses ($334.00 x 10 = $3,340.00) and $1,670.00 for burial expenses ($334.00 x 5 = $1,670.00). Pursuant to HRS §§ 386-41 and -43 (1993 & Supp. 2000), the Director also awarded aggregate weekly benefits of $104,208.00 ($334.00 per week x 312 weeks). On May 23, 2001, the Director issued an amended, supplemental decision that apportioned the obligation to make death benefit payments equally between Employer and the Special Compensation Fund (SCF) [hereinafter, collectively, Respondents], pursuant to their compromise agreement.

On May 24, 2001, Petitioners appealed the Director’s May 14 and 23, 2001 decisions to the LIRAB. The two relevant issues to be determined,3 as stated in the August 3, 2001 Pretrial Order, were:

a. Whether the rate of compensation used to calculate funeral and burial expenses is based on the rate for the year injured employee died.[4]
b. Whether the aggregate weekly benefits payable for death benefits, pursuant to Section 386-43, H.R.S., is based on the rate of compensation for the year injured employee died.

On February 12, 2003, the Board filed its decision and order affirming the Director’s May 14 and May 23, 2001 decisions. The Board concluded, in relevant part:

It is clear from our reading of HRS § 386-41(b) & (c), and HRS § 386-43(b), that the basis for computing dependents’ weekly benefits is the deceased employee’s AWW [average weekly wages] subject to a statutory maximum and minimum.
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Since there is no dispute that AWW for the purpose of calculating disability benefits is limited in HRS § 386-31 to the [258]*258State AWW at the time of the work injury, and since both HRS § 386

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Survivors of Young v. Island Feeling, Inc., 125 P.3d 476, 109 Haw. 255, 2005 Haw. LEXIS 650 (haw 2005).

125 P.3d 476 (Survivors of Young v. Island Feeling, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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