Hayes v. Dutro6/3/2004
FOR PUBLICATION
The dispositive issue in these consolidated appeals is whether the statute of limitations set forth in Hawaii Revised Statutes (HRS) ยง 431:10C-315(b)(3) (Supp. 2003) barred the underlying complaint filed by Plaintiff-Appellant Jerome C. Hayes (Hayes) against Defendants-Appellees Kenneth J. Dutro (Dutro) and Henry's Equipment Rental and Sales, Inc. (Henry's) (collectively, Defendants) for injuries sustained by Hayes during a work-related motor vehicle accident. The Circuit Court of the First Circuit (the circuit court), Judge Victoria Marks (Judge Marks) presiding, concluded, based on Cochran v. Pflueger Autos., Inc., 72 Haw. 460, 463-64, 821 P.2d 934, 936 (1991), that the complaint was time-barred, since it was filed after workers' compensation benefit payments to or on Hayes's behalf had ceased for two years. Accordingly, the circuit court entered an order granting summary judgment against Hayes and a judgment in Defendants' favor.
Hayes argues that Cochran is distinguishable and that, in any event, the circuit court should have used its equitable powers to waive the statute of limitations in this case.
We affirm.
BACKGROUND
On May 13, 1993, while Hayes was acting in the course and scope of his employment with Kam's Express, Inc. (Kam's), the tractor-trailer he was driving on the H-1 Freeway was rear-ended by a tractor-trailer driven by Dutro. At the time, Dutro was acting within the course and scope of his employment with Henry's.
Hayes sustained severe injuries as a result of the accident and thereafter received workers' compensation benefits from Kam's insurance carrier, Plaintiff-Appellee Island Insurance Company, Inc. (Island Insurance). Island Insurance also paid, on Hayes's behalf, various medical service providers who treated Hayes for injuries sustained in the accident. Of particular relevance to this case are the chiropractic treatment services provided to Hayes by Backworks Hawaii, Inc. (Backworks) from November 10, 1993 through mid-January 1994, for which Backworks invoiced Island Insurance.
On December 21, 1993 and March 1, 1994, Island Insurance paid Backworks a total of $4,183.78 for treatments provided to Hayes from November 1, 1993 to November 29, 1993 and December 2, 1993 to January 3, 1994. On December 14, 1994, Island Insurance responded to a "past due" statement for $786.92 from Backworks, stating, in relevant part, as follows:
In our letter dated October 7, 1994, we stated that this balance was for services performed outside of a valid treatment plan. The treatment plan which was in effect at the time provided for twenty-four (24) sessions between the period of November 10, 1993 through January 3, 1994. The service dates included in this balance due are from January 4, 1994 through January 13, 1994 for a total of five (5) additional treatments.
Being that these services were performed outside of the treatment plan, we will continue to deny payment for these dates.
(Upper case format omitted.)
On April 4, 1995, Backworks sent an invoice to Island Insurance, requesting payment of the $786.92. On September 12, 1995, Backworks sent Island Insurance an itemized bill and a copy of Hayes's patient ledger, which reflected the dates of services rendered to Hayes that past payments had covered. Handwritten notes on the patient ledger copy indicate that Island Insurance had paid an additional $291.68 of the $786.92 amount claimed under the September 12, 1994 invoice, thereby paying Backworks for services rendered to Hayes on January 4 and 5, 1994. However, Island Insurance refused to pay for treatment services rendered to Hayes on Januar
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