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Potter v. Hawaii Newspaper Agency2/19/1999
newspapers, the newspaper carriers would deliver them to the customers on their routes within that district. Claimant was one of Toyozaki's newspaper carriers who delivered newspapers within his district. "6. HNA, through Toyozaki, assigned routes to Claimant and all other newspaper carriers within the district. Newspaper carriers, including Claimant, may not change routes without Toyozaki's permission. HNA, through Toyozaki, trained newspaper carriers and directed the manner in which the newspapers are to be delivered to the homes on the route. HNA identified for the newspaper carriers which homes on their routes preferred delivery on the porch, at the door, or in the mailbox. HNA, through Toyozaki, dictated the time within which the newspapers must be delivered by the newspaper carriers. "7. On November 21, 1992, at or around 10:30 p.m., Claimant was injured in a collision between the moped he was operating and a vehicle driven by a third party . . . "8. HNA, through Toyozaki, had provided Claimant with a moped to deliver newspapers on his route. The moped that Claimant was operating at the time of the accident was the one that HNA had provided to him to deliver newspapers. ". . . . "11. On March 24, 1993, Claimant, through his attorney, filed a civil tort action against HNA . . . . "12. On October 29, 1993, seven months after the filing of the civil suit, HNA filed a WC-1 report of industrial injury with the Disability Compensation Division. The WC-1 report stated that Claimant suffered an injury in a motor vehicle accident on November 21, 1992. HNA accepted liability for claimant's November 21, 1992 injury. ". . . . "14. On November 18, 1993, Claimant, through his legal counsel, advised the Disability Compensation Division that he declines any workers' compensation benefits. It was Claimant's intention to seek compensation in tort against HNA and others. "15. By decision dated November 24, 1993, the Director denied compensation to Claimant without a hearing on the basis that Claimant did not wish to pursue a claim for workers' compensation benefits. "16. There is no evidence that HNA wilfully caused Claimant to believe that he would not be entitled to workers' compensation benefits and could only seek judicial relief for injuries related to his work. There is also no evidence that HNA ever took the position that Claimant was not covered by or entitled to benefits under Chapter 386." "CONCLUSIONS OF LAW "A. Contract of Hire ". . . . "Under HRS § 386-1, employee means any individual in the employment of another person. Employment "means any service performed by an individual for another person under any contract of hire or apprenticeship, express or implied, oral or written, whether lawfully or unlawfully entered into." HRS § 386-1. "The Hawaii Supreme Court has held that a "contract which sets forth the place, weekly hours, and duration of the employee's employment as well as the wages he will be paid while working" satisfies the requirements of a contract of hire within the meaning of the workers' compensation law. Evanson v. Univ. of Hawaii, 52 Haw. 595, 599 (1971). "The fact that Claimant and HNA may have entered into an independent contractor agreement and agreed not to label their relationship as one of employment does not mean that there was no contract of hire or no employment relationship. "In Locations, Incorporated v. Hawaii Dept. of Lab. and Indus. Rel., 79 Hawaii 208, 211 (1995), the Hawaii Supreme Court stated that although a relationship may be based on an independent contractor agreement, the existence of an independent contractor agreement, standing alone, would not exempt an employer from the requirements of Chapter 386. The Court "recognized that an employment relationship may exist even in situations in which
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