NO. 22464



IN THE INTERMEDIATE COURT OF APPEALS



OF THE STATE OF HAWAII





DARRYL S. IGAWA, Claimant-Appellant, v. KOA HOUSE

RESTAURANT, Employer-Appellee, and PACIFIC

INSURANCE COMPANY, Insurance Carrier-Appellee





APPEAL FROM THE LABOR AND INDUSTRIAL

RELATIONS APPEALS BOARD

(Case No. AB 96-434 (2-91-35946))





MEMORANDUM OPINION

(By: Burns, C.J., Watanabe and Lim, JJ.)





In this workers' compensation case, Claimant-Appellant Darryl S. Igawa (Igawa) appeals the March 30, 1999 Decision and Order (the Decision) of the Labor and Industrial Relations Appeals Board (the Board). The Decision reversed in part and modified in part the July 12, 1996 Supplemental Decision and Order (the Supplemental Decision) of the Director of Labor and Industrial Relations (the DLIR). The Decision reversed the DLIR's award of $44,990.40 in permanent partial disability (PPD) benefits to Igawa, and reduced his disfigurement award from $2,000.00 to $850.00.

On appeal, Igawa argues (1) that the Board erroneously concluded he did not sustain any permanent disability attributable to his October 3, 1991 work injury, and (2) that the

Board erred as a matter of law in modifying his disfigurement award.

We reverse the Decision insofar as it denied PPD benefits to Igawa, but we affirm the Decision's modification of Igawa's disfigurement award.



I. Background.

On October 3, 1991, Igawa, who was employed as a cook by the Koa House Restaurant (the Employer), sustained a head injury when he reached for a pot on an overhead shelf and a "big soup pot" improperly stacked on top of the desired pot fell and struck him in the right forehead.

Igawa sustained a small laceration on his right forehead. He complained of swelling, dizziness and nausea. Several days later, he experienced severe headaches, loss of appetite, slight nausea, photophobia and sonophobia. He became forgetful and "fuzzy." His concentration and accuracy suffered. He would get lost easily. He became more distracted and irritable, and had trouble sleeping. He also complained of lightheadedness, blurred vision and dizziness. By June 1993, Igawa was complaining of pain and problems in his right upper extremity with numbness and tingling into the right half of his body, attributable to cervical strain from jerking his head back during the accident. He was also experiencing sudden blackouts. At the hearing before the Board, Igawa testified that these sequelae of his industrial accident have severely limited his capabilities and functioning, such that he was unable to return to work or obtain employment.

Igawa was thirty years old at the time of the 1991 accident. In August 1975, while he was a teenager, Igawa sustained a significant head injury when he fell into a drainage ditch onto his head. He was in a coma for six days. The fall caused a brain contusion and a small hematoma in the left temporal area. He thereafter experienced a number of physical, neurological, psychological and behavioral problems, which led to suicidal ideation and a number of psychiatric hospitalizations. A 1977 diagnosis listed temporal lobe seizures secondary to brain trauma. A secondary diagnosis listed depressive reaction, insomnia, headaches and behavioral problems. By 1981, these sequelae had resolved and Igawa no longer needed medication.

The overarching issue in this case is whether Igawa's permanent partial disability is attributable solely to the nonindustrial accident in 1975, and is therefore not compensable. See, e.g., Akamine v. Hawaiian Packing & Crating Co., 53 Haw. 406, 495 P.2d 1164 (1972).

During the claims process, the Employer's insurer denied Igawa's request that it authorize surgery to excise a lesion in his right frontal lobe area. Igawa's physician, Dr. Yoshio Hosobuchi, opined that a preexisting "small cavernous angioma" in his right frontal lobe may have hemorrhaged as a result of the 1991 industrial accident, causing Igawa's headaches and seizure problems. The insurer's medical examiners believed instead that Igawa's problems were solely a result of the 1975 accident, and that the preexisting lesion had in any event not hemorrhaged as a result of the 1991 industrial accident.

After a hearing on September 6, 1994, the DLIR issued a November 15, 1994 Amended Decision and Order, (1) in which the DLIR found that "there is insufficient medical evidence to rebut Dr. Hosobuchi's opinion that claimant's headaches and seizures are not [sic] caused by the hemorrhaged angioma. Also, the medical evidence on file supports the fact that since said accident, claimant started having headaches and seizures. We note that claimant did have headaches prior to date of accident, but they had resolved before claimant had said work-related accident."

The DLIR thereupon ordered that the Employer "pay for such medical care, services and supplies as the nature of the injury may require, to include surgery to remove lesion from the right frontal lobe." The DLIR also awarded Igawa temporary total disability benefits. The DLIR left the issues of permanent disability and disfigurement for determination at a later date.

The Amended Decision and Order read as follows:

On October 3, 1991, claimant was in the employ of [the Employer]; on said date, claimant sustained a personal injury to the head by accident arising out of and in the course of employment; said injury was not caused by claimant's wilful intention to injure oneself or another nor by intoxication. As a result of

said injury, claimant was temporarily and

totally disabled from work beginning (waiting

period: November 9, 1991 through November 10,

1991; November 13, 1991) November 14, 1991

through November 17, 1991; April 5, 1992 through

April 13, 1992; April 24, 1992 and continuing

until such time as is determined by the Director

that such disability has ended. The matters of

permanent disability and/or disfigurement, if

any, shall be determined at a later date. The

average weekly wages of the claimant were

$290.00.



A hearing was held on September 6, 1994 to determine further medical liability, and other related issues.



Claimant contends that employer should authorize surgery which was recommended by Y. Hosobuchi, M.D., who was a referral from Kenneth Nakano, M.D., claimant's attending physician. Dr. Hosobuchi opines that the surgery should

stop claimant's continued headaches and

seizures. In his independent medical

examination (IME) of June 28, 1992, scheduled by

employer, James Pierce, M.D., opines that

claimant's headaches are related to said work

accident.



Claimant states that he sees "stars" and Dr. Hosobuchi told him that the surgery should stop this. He also has had a bad memory since the work-related accident. He has right leg and arm numbness and is not that balanced and has light-headedness when he suffers the seizures.



Employer denies liability for the surgery since it is not required by the nature of the injury. Maurice Nicholson, M.D., opines in his IME of December 4, 1993, that there is no basis to relate claimant's frontal lobe lesion to the date of said accident. Further, a CT scan of October 30, 1991 shows that the lesion is from the old injury in 1975 and that there is no mass from the lesion and that there is no indication for surgery.





Juris Bergmanis, M.D., opines in his

report of April 22, 1994, that claimant's right

frontal lobe cyst is related to the old injury

of 1975. He also goes on to indicate that he

agrees with Dr. Nicholson's conclusions. Dr.

Bergmanis notes that no angiogram was done to

confirm angioma and that surgery is not

necessary and will not alleviate claimant's

headaches.



Upon review of the entire matter, it is determined that the surgical excision of the lesion from the right frontal lobe appears to be reasonable and necessary medical care which relates to said injury.



We credit Dr. Hosobuchi's reports of December 16, 1993 and September 12, 1994 in

which he opines that claimant "had a small

cavernous angioma in the right frontal lobe and

because of the head injury it may have

hemorrhaged causing headache and seizure

problems." Further, Dr. Hosobuchi opines that

surgery would eliminate claimant's headaches and

seizures.



Dr. Pierce in his report of June 28, 1992 opines, "The headaches he describes took a

rather dramatic change since his accident of

October. I think the accident combined with the

associated stressors are responsible for the

majority of his headache problems now."



Dr. Nicholson states in his report of December 4, 1993 that "An arteriogram should be performed to diagnose whether or not there is an angioma."



Dr. Bergmanis, in his report of April 22, 1994, opines that "cerebral angiography is the only study that conceivably could throw some light on this problem, although some of the malformations are so small as not to be seen on any test."



Further, Dr. Hosobuchi opines in his

report of September 12, 1994, "By nature of his

anatomy, cryptic arteriovenous malformation or

cavernous angioma cannot be demonstrated by the arteriogram."



Based on the aforementioned, any test conducted to diagnose angioma would not be appropriate since it would not show up on the

test. Further, there is insufficient medical

evidence to rebut Dr. Hosobuchi's opinion that

claimant's headaches and seizures are not [sic]

caused by the hemorrhaged angioma. Also, the

medical evidence on file supports the fact that

since said accident, claimant started having

headaches and seizures. We note that claimant

did have headaches prior to date of accident,

but they had resolved before claimant had said

work-related accident.



Thereupon the Director makes the following

DECISION



[Hawaii Revised Statutes] HRS, said employer shall pay for such medical care, services and supplies as the nature of the injury may require, to include surgery to remove lesion from the right frontal lobe.



employer shall pay to claimant weekly compensation of $193.34 for temporary

total disability from work beginning

November 14, 1991 through November 17,

1991; April 5, 1992 through April 13,

1992; April 24, 1992 and terminating at

such time as is determined by the Director

that such disability has ended.



at a later date.



The Employer did not appeal the DLIR's November 15, 1994 Amended Decision and Order, even though the DLIR, in ordering the surgery and awarding Igawa temporary total disability benefits, concluded that the 1991 industrial accident had caused morbidity and disabling sequelae.

On December 2, 1994, the surgery was performed by Dr. Hosobuchi. About a week later, Dr. Hosobuchi reported to Dr. Nakano:

Finally Daryl [sic] Igawa won and the Workman's

[sic] Compensation agreed to pay for the surgery

so he underwent right frontal craniotomy and

excision of a cryptic arteriovenous malformation

and significant frontal gliosis. Thus whatever

the caused [sic] avian bleed one will never know

but certainly he had a very significant gliosis

to explain for [sic] his seizure problem and

this is cleanly excised. I hope this will

certainly reduce his seizure frequencies. I saw

him today on December 8th and we removed the

staples and he has done quit [sic] well and I

will keep you posted about his progress from

this standpoint.



About a month-and-a-half after the surgery, Dr. Hosobuchi reported to Dr. Nakano that "[t]he wound has healed well and he has not had a bad headache anymore and no seizures." Within a year, however, Igawa's headaches, seizures and associated problems returned.

On July 12, 1996, the DLIR issued a Supplemental Decision, which took up the issues of permanent disability and disfigurement left for further determination by its Amended Decision and Order. The Supplemental Decision read, in pertinent part, as follows:

1. On October 3, 1991, claimant, while

in the employ of [the Employer],

sustained a personal injury by

accident arising out of and in the

course of employment, said injury was

not caused by claimant's wilful

intention to injure oneself or

another nor by intoxication.



2. The location of said injury was:

head.



3. At the time of said injury, the

average weekly wages of claimant were

$290.00.



awarded the following benefits which the employer shall pay pursuant to Chapter

386, HRS:



a. TEMPORARY TOTAL

DISABILITY: (Waiting

period: November 9, 1991

through November 10, 1991;

November 13, 1991)

beginning November 14,

1991 through November 17,

1991; April 5, 1992

through April 13, 1992;

April 24, 1992 through

October 17, 1995

NUMBER OF WEEKS: 183 4/7 @ $193.34 = $35,491.69



. . . .



d. PERMANENT PARTIAL

DISABILITY: beginning

October 18, 1995

NUMBER OF WEEKS: 232.7009 @ $193.34 = $44,990.40[.]

35.00% of the whole person



e. DISFIGUREMENT: 8½" hypopigmented surgical

scar, forehead

TOTAL: $2,000.00



Claimant is awarded such medical care, services

and supplies as the nature of the injury may

require pursuant to Sections 386-21 and 386-26,

HRS.



On July 25, 1996, the Employer filed an appeal of the Supplemental Decision with the Board. On that same day, the Employer also filed a Motion for Stay of Payments of the disfigurement and PPD awards.

In support of its Motion for Stay of Payments, the Employer argued that the DLIR's Supplemental Decision "is silent with respect to the Director's reliance on medical opinion to reach the decision, and absent from the [Supplemental Decision] is any reference to whether Dr. [Thomas H.] Sakoda's report, Dr. [Shepard] Ginandes' report, Dr. [Maurice W.] Nicholson's report or Dr. [George D.] Bussey's report was utilized."

Employer also complained that the "amount awarded by the Director to Claimant is simply excessive for a very minor injury on a person with significant pre-existing conditions[,]" and that "[t]here is overwhelming medical evidence supporting a 0% award for Claimant's psychiatric impairment."

On August 29, 1996, the Board issued an Order Granting Stay of Payments in Part, which stayed the payment of PPD benefits in excess of 5% impairment of the whole person.

On September 13, 1996, following a pre-hearing conference with counsel the day before, the Board issued a Pretrial Order, in which it identified the two issues to be determined on appeal: (1) "What is the extent of permanent disability resulting from the work injury of October 3, 1991[;]" and (2) "[w]hat is the extent of disfigurement resulting from the work injury of October 3, 1991." The Employer had filed a September 9, 1996 Initial Conference Statement, which in essence limited its appeal to the two issues identified by the Board. The Initial Conference Statement did not dispute the DLIR's award of temporary total disability benefits to Igawa, even though the award implicitly recognized that more than three years of total disability had resulted from the 1991 industrial accident. Nor did the Statement dispute the DLIR's order that the Employer pay for the remedial surgery.

At the September 29, 1997 appeal hearing, Igawa was the only live witness to testify. Igawa testified that after his 1975 fall, he received seven years of active treatment and medication for its sequelae from Dr. Joseph Tsai. By the end of the seven years, however, his seizures and blackouts ceased and he stopped taking medication.

Igawa further testified that he now takes Dilantin for his seizures, "Tylenol Codeine" for headaches and Triazalon for sleeping problems and for pain. Igawa also claimed that he is depressed and seldom socializes because of problems with his headaches, his arm and his leg. He also suffers from dizziness or lightheadedness, blurred vision, clumsiness and continuing blackouts. Igawa described his most recent blackout, which occurred one month before the hearing. He had been walking to his friend's car when he became lightheaded and "went down," injuring his wrist in the fall.

Igawa maintained that he no longer has the strength to work in his yard because his arm "bothers" him, that he has trouble concentrating, that he forgets things "real bad," that Dr. William T. Tsushima treated him for suicidal ideation for a period after the 1991 industrial accident occurred, and that he has lost twenty-five to thirty pounds due to lack of appetite.



Igawa further testified that, although he had experienced headaches after his 1975 accident, the headaches had remitted, at least from the time he stopped his medications in 1980, until his 1991 work injury. After the 1991 work injury, Igawa began to suffer daily, lingering headaches. Igawa testified that he had not been on medication for "almost ten years until this accident."

On cross-examination, Igawa admitted that he had encountered problems with his co-workers before the 1991 work injury, but claimed that "everything got worse" after the accident.

With respect to Igawa's scar, Igawa's counsel pointed out new suture marks from a remedial, post-surgery procedure. Igawa testified that the scar had become a "lot wider" as a result of the post-surgery procedure.

On the same day as the hearing, the Employer submitted its post-hearing Position Statement. The Employer argued that Igawa's PPD benefits should be "limited to 5% of the whole person, which has already been paid by Employer/Carrier subsequent to the Order granting Stay of Payments in Part issued . . . on August 26, 1996." The Employer also argued that disfigurement benefits should be limited to $850.00.

On March 30, 1999, the Board rendered the Decision, in pertinent part:



FINDINGS OF FACT



1. On October 3, 1991, Claimant, who was

employed as a cook by Employer, sustained a

compensable head injury when he reached overhead

for a pot and another pot about two feet above

his reach fell and struck him in the right

forehead. Claimant was dazed, but did not lose

consciousness.



2. In August 1975, Claimant sustained a significant head injury when he fell into a

drainage ditch and was knocked unconscious.

Claimant was evaluated both neurologically and

neurosurgically, with no significant sequelae

found at that time. In the fall of 1976,

however, Claimant began to exhibit abnormal

behavior, including hallucinations, deja vu

experiences, and time distortions.



In December 1976, an EEG was normal, but a

brain scan showed an abnormality in the right

frontoparietal area and a CT scan showed right

frontal and temporal lesions. Claimant was seen

by Dr. Stanford Au in a neurological

consultation and was diagnosed with temporal

lobe epilepsy (TLE). The TLE was treated with

the medication Dilantin.



Claimant had multiple hospitalizations in

1977. He was seen at Queen's Medical Center

(QMC) during January and February 1977, for TLE

secondary to brain trauma and psychosis

associated with brain trauma. Claimant was

hospitalized at QMC in April 1977 and October

1977, for a depressive reaction, with the TLE

noted to be under control.



On April 2, 1981, Claimant reported to Dr.

Au that he had been seizure-free for about four

years and had taken himself off Dilantin about

one year ago. A repeat EEG of April 6, 1981 was

normal. After 1981, Claimant did not receive

further medical treatment for his 1975 head

injury.



3. Claimant was initially treated for his

work injury by Dr. Joseph Tsai, his regular

physician, for complaints of dizziness and

headache. Dr. Tsai noted a small laceration

just above Claimant's right eyebrow. Because

Claimant continued to complain of headaches, Dr.



Tsai ordered a CT scan and referred Claimant to

a neurologist, Dr. Jordan Popper.



4. An October 30, 1991 CT scan of the

head showed a 1.8 x 2.6 cm. focal area of

atrophy in the right frontal lobe.



5. Claimant saw Dr. Popper on November 8,

1991. An EEG of November 12, 1991 was normal.

Dr. Popper diagnosed post-concussion syndrome

and post-traumatic headaches.



6. Claimant saw Dr. Gordon Trockman of

Straub Clinic & Hospital (Straub) for a

psychiatric consultation in January 1992. Dr.

Trockman reported that Claimant was working at

the time and that he was doing well emotionally

without depression or anxiety.



Dr. Trockman's subsequent clinical notes

reflect that Claimant became very upset at work

on April 24, 1992 and walked off the job.

Claimant's boss indicated, however, that

Claimant was having behavioral difficulties at

work before his work injury and that this was

not the first time he had walked off the job.

Claimant's employment was eventually terminated.



7. On August 10, 1992 and September 3,

1992, Claimant underwent a neuropsychological

evaluation with Robert Anderson, Jr., Ph.D. Dr.

Anderson stated that the work accident in

October 1992 could not have resulted in a brain

injury. The pot weighed only one pound and fell

a short distance and there was no loss of

consciousness and no post-traumatic amnesia.



According to Dr. Anderson, Claimant was experiencing significant emotional distress and

the work injury appeared to be acting as a focus

for his emotional distress. Dr. Anderson noted

that Claimant had a history of difficulty coping

with emotional distress that was due, in part,

to his 1975 head injury and was also a

contributing factor to his present symptom

complex.



8. Claimant was seen by Dr. Kenneth

Nakano at Straub for a neurologic consultation

on September 24, 1993. Dr. Nakano opined that

Claimant had a mild closed head injury and

residual post-traumatic headaches as a result of

his work injury.



9. Upon Dr. Nakano's referral, Claimant

was seen by Dr. Yoshio Hosobuchi of Straub for a

neurosurgical consultation on November 3, 1993.

Dr. Hosobuchi diagnosed hemorrhagic cyst

probably formed post-traumatically secondary to

pre-existing cavernous angioma and recommended

surgical extirpation of the hemorrhagic cyst and

cavernous angioma.



In a request for authorization for surgery

dated November 3, 1993, Dr. Hosobuchi attributed

Claimant's headache and seizure to the

hemorrhagic cyst. Dr. Hosobuchi stated that

Claimant may have had a small cavernous angioma

in the right frontal lobe, which hemorrhaged as

a result of his work injury. Dr. Hosobuchi also

stated, however, that a cavernous angioma or

cryptic arteriovenous malformation (AVM) could

spontaneously hemorrhage.



10. A November 3, 1993 brain MRI showed

two right frontal lobe lesions. An EEG of the

same date was found to be mildly abnormal,

consistent with a right hemisphere frontal

temporal deficit.



11. Claimant had surgery at Straub on

December 2, 1994. The Straub records describe

the procedure performed as a right frontal

craniotomy and excision of a cryptic AVM and

significant frontal gliosis.



12. Claimant was evaluated by Dr. Maurice Nicholson in November 1993 and February 1996,

and by Dr. Juris Bergmanis in April 1994. Both

doctors are neurosurgeons. Dr. Nicholson's

reports are dated December 4, 1993 and

February 25, 1996. Dr. Bergmanis' report is

dated April 22, 1994.



Both Drs. Nicholson and Bergmanis

diagnosed Claimant's work injury as a mild head

injury.



They agreed that the right frontal lobe

cystic lesion was not related to Claimant's work

injury, but was related to the 1975 head injury.

They noted that the cystic lesion was present

before the 1991 work injury and had been

documented on diagnostic studies as early as

1976.





In addressing Dr. Hosobuchi's opinion that

the frontal lobe cyst was hemorrhagic in type

and therefore, could have been caused by

bleeding of a cavernous angioma, Dr. Bergmanis

stated that it was far more probable that any

bleeding was caused by a major, rather than a

minor, head injury.



13. Dr. Nicholson opined that Claimant did

not sustain any ratable impairment due to his

October 3, 1991 work injury.



14. Dr. George Bussey, a psychiatrist,

provided a records review report dated April 19,

1996. After he examined Claimant, Dr. Bussey

submitted another report dated May 7, 1996.



Dr. Bussey's psychiatric diagnosis

included organic personality syndrome secondary

to 1975 brain injury and probable adjustment

disorder secondary to multiple psychosocial

stressors.



Dr. Bussey opined that Claimant's 1991

work injury did not result in any psychiatric

impairment. While Dr. Bussey found that

Claimant had a mild psychiatric impairment, such

impairment was due to the underlying organic

personality disorder related to his 1975 head

injury.



15. We find that Claimant sustained only a

minor head trauma due to his October 3, 1991

work injury. Claimant did not sustain a

hemorrhagic cyst as a result of his work injury.

Based on Dr. Bergmanis' opinion, we find that

any hemorrhagic cyst Claimant may have sustained

was more probably related to his major head

injury in 1975.



While Claimant has attributed a multitude

of symptoms to his 1991 work injury, we find

that these symptoms cannot be accounted for on

the basis of his minor head injury. In 1996,

Claimant reported to Dr. Nicholson having [sic]

neck pain with pain radiating down the entire

right body with numbness on the entire right

side of his body. Dr. Nicholson stated that

these symptoms as well as Claimant's headaches

had a psychological or nonorganic basis.



16. Based on Drs. Nicholson's and

Bergmanis' opinions, we find that Claimant did

not sustain any permanent physical impairment as

a result of his work injury.



We do not accept Dr. Thomas Sakoda's

permanent physical impairment report dated

November 16, 1995, because his diagnosis of

Claimant's work injury as a central nervous

system injury and cervical spine problem is

inconsistent with the minor nature of the work

injury.



17. Based on Dr. Bussey's opinion, we find

that Claimant did not sustain any permanent

psychiatric impairment as a result of his work

injury.



We do not accept Dr. Shepard Ginandes'

permanent psychiatric impairment rating report

dated February 26, 1996, because his history of

Claimant's work injury and consequences stemming

from the work injury are inconsistent with the

minor nature of work injury.



18. Claimant has an 8-1/2" hypopigmented surgical scar on the forehead, as a result of

his surgery.



19. Because the Director had determined

that Claimant's surgery was related to his work

injury, Employer was ordered to pay for the

surgery. Liability for the surgery, however, is

not an issue on appeal.



20. On appeal, Employer does not dispute Claimant's entitlement to compensation for his surgical scar. Employer only seeks a reduction

in the amount of the Director's disfigurement

award.



21. We find that Claimant is entitled to

$850.00 for his disfigurement.



. . . .



CONCLUSIONS OF LAW



1. We conclude that Claimant did not

sustain any permanent disability attributable to

his October 3, 1991 work injury, because

Claimant's work injury was a minor head trauma

which would not have resulted in any permanent

impairment either on a physical or psychiatric

basis.



2. We conclude that Claimant is entitled

to $850.00 for disfigurement.

On April 28, 1999, Igawa filed his notice of this appeal.

II. Standards of Review.

A. Agency Decisions.



Judicial review of administrative agency decisions, in particular the decisions of the Board, is governed by HRS § 91-14 (1993). Under HRS chapter 91, appeals taken from findings set forth in decisions of the board are reviewed under the clearly erroneous standard. Thus, this court considers whether such a finding is clearly erroneous in view of the reliable, probative, and substantial evidence on the whole record.



A finding of fact is clearly erroneous when (1) the record lacks substantial evidence to support the finding, or (2) despite substantial evidence in support of the finding, the appellate court is left with the definite and firm conviction that a mistake has been made. On the other hand, a conclusion of law is not binding on an appellate court and is freely reviewable for its correctness. Thus, this court reviews conclusions de novo under the right/wrong standard.



Bocalbos v. Kapiolani Medical Center, 93 Hawaii 116, 123-24, 997 P.2d 42, 49-50 (App. 2000) (brackets, citations, footnote, ellipsis, emphasis, and internal quotation marks omitted). Hawaii Revised Statutes (HRS) § 91-14(g) (1993) provides:

Upon review of the record the court may affirm the decision of the agency or remand the case with instructions for further proceedings; or it may reverse or modify the



decision and order if the substantial rights

of the petitioners may have been prejudiced

because the administrative findings,

conclusions, decisions, or orders are:



(1) In violation of constitutional or statutory provisions; or



(2) In excess of the statutory authority or jurisdiction of the agency; or



(3) Made upon unlawful procedure; or



(4) Affected by other error of law; or



(5) Clearly erroneous in view of the reliable, probative, and substantial evidence on the whole record; or



(6) Arbitrary, or capricious, or characterized by abuse of discretion or clearly unwarranted exercise of discretion.



"Under HRS § 91-14(g), [COLs] are reviewable under subsections (1), (2), and (4); questions regarding procedural defects are reviewable under subsection (3); [FOFs] are reviewable under subsection (5); and an agency's exercise of discretion is reviewable under subsection (6)." Potter v. Hawaii Newspaper Agency, 89 Hawaii 411, 422, 974 P.2d 51, 62 (1999) (quoting Korean Buddhist Dae Won Sa Temple v. Sullivan, 87 Hawaii 217, 229, 953 P.2d 1315, 1327 (1998) (quoting Konno v. County of Hawaii, 85 Hawaii 61, 77, 937 P.2d 397, 413 (1997) (quoting Bragg v. State Farm Mutual Auto. Ins., 81 Hawaii 302, 305, 916 P.2d 1203, 1206 (1996)))).





Korsak v. Hawaii Permanente Medical Group, 94 Hawaii 297, 302, 12 P.3d 1238, 1243 (2000) (brackets in original).

In addition, the Hawaii Supreme Court has stated that

[appellate] review is "further qualified by the principle that the agency's decision carries a presumption of validity and appellant has the heavy burden of making a convincing showing that the decision is invalid because it is unjust and unreasonable in its consequences."



Mitchell v. State, Dept. of Educ., 85 Hawaii 250, 254, 942 P.2d 514, 518 (1997) (citations omitted).

B. Statutory Interpretation.

[T]he interpretation of a statute is a question of law reviewable de novo. Furthermore, our statutory construction is guided by established rules:



When construing a statute, our foremost obligation is to ascertain and give effect to the intention of the legislature, which is to be obtained primariliy from the language contained in the statute itself. And we must read statutory language in the context of the entire statute and construe it in a manner consistent with its purpose.



This court may also consider the reason and the spirit of the law, and the cause which induced the legislature to enact it . . . to discover its true meaning. HRS § 1-15(2) (1993).



Korsak, 94 Hawaii at 303, 12 P.3d at 1244 (citations, ellipses, and quotation marks, omitted).

III. Discussion.

A. The Board Erroneously Concluded That Igawa Did Not Sustain Any Permanent Disability Attributable to His October 3, 1991 Work Injury.



Igawa undisputedly suffered a work injury on October 3, 1991. Igawa appeals the Board's conclusion that he did not sustain any permanent disability as a result of that work injury. HRS chapter 386 governs workers' compensation claims. HRS § 386-85(1) (1993) provides that "[i]n any proceedings for the enforcement of a claim for compensation under this chapter it shall be presumed, in the absence of substantial evidence to the contrary . . . [t]hat the claim is for a covered work injury[.]" This presumption has been described as one of the "keystone principles" of our workers' compensation plan. Iddings v. Mee-Lee, 82 Hawaii 1, 22, 919 P.2d 263, 284 (1996) (Ramil, J., dissenting).

The Hawaii Supreme Court has construed "the use of the word 'any' to mean that the presumption applies in all proceedings conducted pursuant to the workers' compensation chapter. See Hough v. Pacific Ins. Co., Ltd., 83 Hawaii 457, 463, 927 P.2d 858, 864 (1996) ('[I]n interpreting a statute, we give words their common meaning, unless there is something in the statute requiring a different meaning.')" Korsak, 94 Hawaii at 306, 12 P.3d at 1247.

Igawa's claim was filed under the workers' compensation chapter. The purpose of the proceeding before the Board was to determine the compensability of Igawa's PPD claim. (2) Thus, pursuant to the plain language of the statute, the presumption applied in Igawa's PPD and disfigurement proceeding.

Consequently, the Employer had the burden to rebut the statutory presumption that Igawa suffered PPD as a result of his work injury:

"HRS § 386-85(1) creates a presumption in favor of the claimant that the subject injury is causally related to the employment activity. . . . [T]his presumption imposes upon the employer both the heavy burden of persuasion and the burden of going forward with the evidence. Akamine, 53 Haw. at 408, 495 P.2d at 1166. The claimant must prevail if the employer fails to adduce substantial evidence that the injury is unrelated to employment. The term "substantial evidence" signifies a high quantum of evidence which, at the minimum, must be "relevant and credible evidence of a quality and quantity sufficient to justify a conclusion by a reasonable man that an injury or death is not work connected." Id. at 408-09, 495 P.2d at 1166; Survivors of Timothy Frietas v. Pacific Contractors Co., 1 Haw. App. 77, 85, 613 P.2d 927, 933 (1980)."



Korsak, 94 Hawaii at 307-08, 12 P.3d at 1248-49 (quoting Chung v. Animal Clinic, Inc., 63 Haw. 642, 650, 636 P.2d 721, 726).

In its Decision, the Board relied upon the reports of Drs. Nicholson and Bergmanis to find that Igawa did not sustain



any permanent physical impairment as a result of his work injury. The Board also relied upon Dr. Bussey's report to find that Igawa did not sustain any permanent psychological impairment as a result of his work injury.

In his December 4, 1993 report, Dr. Nicholson wrote, "Basically, this man's examination is unremarkable." He believed that the prognosis for Igawa's "minor head injury should be excellent[,]" and opined that "[t]here is no basis to relate any aggravation of the right frontal lobe lesion to the accident of October 3, 1991. Dr. Nicholson opined that, "If surgery is done, it is in no way related to the October 3, 1991 accident. . . . This man did work for six months following his October 3, 1991 injury, and there does not appear to be any physical reason why he could not have continued to work."

Furthermore, in his February 25, 1996 report, Dr. Nicholson wrote:

For purposes of a rating, it should be noted

that this man's cyst was present prior to 1991,

and a slight blow this [sic] man's head did not

cause the cyst. The cyst documented [sic] and

diagnosed prior to 1991. This man's headaches,

in my opinion, have been on the basis of a

psychological or nonorganic basis. He now has

headaches in spite of having surgery.



. . . .



Dr. Bergmanis, Dr. Anderson, and this examiner are all in agreement that the October, 1991 injury was a minor injury of no significance. This man does not have any ratable impairment referable to the October, 1991 incident.



. . . .



Dr. Sakoda's rating is completely inconsistent with the injury.



. . . .



There is absolutely no evidence that this man injured his neck in the October, 1991 incident.



. . . .



There is absolutely no relationship [between possible right carpal tunnel syndrome as discussed by Dr. Sakoda and the October 3, 1991 injury]. Clinically he does not have a carpal tunnel syndrome in any case.



In his April 22, 1994 report, Dr. Bergmanis opined that Igawa "incurred a mild, rather non-specific head injury in the work-related incident of 10/3/91." Dr. Bergmanis' review, dated October 30, 1991, of a CT scan of Igawa's head indicated a "small peripherally located cyst in the right frontal region" which

appeared consistent with old trauma and did not contain evidence of fresh bleeding within it.

Dr. Bergmanis conceded that Igawa "had a scalp injury and even these minor injuries can lead to prolonged post-traumatic headaches[,]" but opined that his headaches "are greatly aggravated by pre-existing current psychological and stress factors as already documented." Dr. Bergmanis characterized Dr. Hosobuchi's diagnosis of "cryptic arteriovenous malformation" as "mere speculation. Cerebral angiography is the only study that conceivably could throw some light on this problem, although some of the malformations are so small as not





to be seen on any test." He agreed with Dr. Nicholson that surgery was not indicated.

In his April 19, 1996 report, Dr. Bussey opined that

I do not believe that Mr. Igawa has any psychiatric impairment secondary to the industrial injury of 1991. I do believe that he has an underlying pre-existing psychiatric impairment secondary to the organic personality disorder associated with his 1975 injury.



. . . .



Overall Mr. Igawa suffers from a mild

psychiatric impairment due to underlying organic

personality disorder related to his 1975 injury.

There is no impairment related to his 1991

industrial injury.



. . . .



. . . 100% of the psychiatric impairment is pre-existing and not related to the industrial injury.



In a supplemental reported dated May 7, 1996, Dr. Bussey repeated his belief that "I do not believe that Mr. Igawa has any psychiatric impairment secondary to the industrial injury of 1991."

In addition to these reports, the record also contains a report from Dr. Mark Dillen Stitham, who performed an independent psychiatric examination of Igawa. Dr. Stitham did not anticipate any permanent disability resulting from the work injury. The record also contains a report from Dr. Anderson, who conducted a neuropsychological evaluation of Igawa on August 10, 1992 and September 3, 1992. Dr. Anderson opined that Igawa might be presenting an "exaggerated picture" of his present situation and that the work injury is not likely to have resulted in a brain injury.

The Board nonetheless erred when it denied Igawa PPD benefits, in light of the directly contradictory medical reports in the record before the Board.

In his independent medical examination (IME) report dated October 31, 1995, Dr. Sakoda noted that Igawa complained to him of "headaches, neck pain, low-back pain and occasional numbness and weakness of the right hand with occasional numbness and tingling of the right foot. He is also having some psychiatric/psychological problems and insomnia following a head injury that occurred at work on 01 [sic] October 1991."

Dr. Sakoda went on to note Igawa's difficulty with memory and mathematical calculations, as well as Igawa's episodic disorder of seizures. Dr. Sakoda noted that Igawa had blacked out three to four times since the surgery, with the last episode occurring "last month."

In his November 16, 1995 report, Dr. Sakoda specifically stated that his diagnosis, prognosis and impairment rating for Igawa, dated November 16, 1995, was for "any permanent impairment related to the injury which occurred on 01 [sic] October 1991."

Dr. Sakoda opined that, although a cryptic arteriovenous malformation pre-existed the work injury,





the results certainly indicate that the AV malformation was somehow aggravated by the

trauma [of the work injury] and there most

likely there [sic] was some bleeding into the

cyst at that time. This did cause some problems

mentally and symptomatically. Postoperatively,

he is much improved and this certainly supports

the diagnosis of Dr. Hosobuchi.

Dr. Sakoda also noted that Igawa "appears to have had a hyperextension injury to his neck when struck by the large pot" which "could be a strain or a cervical disk injury."

Dr. Sakoda wrote that "the prognosis for the [arteriovenous] malformation certainly is good[,]" and that the symptoms Igawa has are not related to the malformation. In addition, Dr. Sakoda opined that the prognosis for "the other conditions" would be "fair to good."

Dr. Sakoda further opined that Igawa has an injury to the central nervous system relating to his head injury. He rated Igawa as having "11% impairment of the whole person for his head injury" owing to Igawa's continuing blackouts, memory problems, mathematical difficulties and emotional behavior impairments -- for forgetfulness and difficulty with numbers, he rated a 2% impairment; for mild emotional behavior limitation, he rated a 2% impairment; for risk or limitation of daily activities due to blackouts, he rated a 7% impairment; for a combined total of 11% impairment.

Dr. Sakoda further opined that Igawa suffers a problem of the cervical spine. He stated,



Under the DRE Category, he would really fall

into Category II and that would be 5% impairment

of the whole person. However, there are no

x-rays, no EMG studies and nothing to assess

whether he might be placed in a higher category

because of some other criteria. Thus, he may

not qualify for the DRE categories. Using the

Range of Motion Model, he has 4% impairment of

the whole person for the injury that is still

symptomatic. He has limitation of movement.

Cervical flexion is 31 degrees or 2% impairment

of the whole person. Cervical extension is 40

degrees or 2% impairment of the whole person.

Cervical right lateral flexion is 30 degrees or

1% impairment of the whole person. Cervical

left lateral flexion is 43 degrees of 1%

impairment of the whole person. Cervical right

rotation is 62 degrees or 1% impairment of the

whole person. Cervical left rotation is 68

degrees or 1% impairment of the whole person.

The combined value is 8% impairment of the whole

person for limitation of movement of the

cervical spine. The combined value for the neck

injury would then be 8% + 4% or 12% impairment

of the whole person based on the Range of Motion

Model.

In his February 26, 1996 report on his independent psychiatric examination of Igawa, Dr. Ginandes evaluated Igawa for permanent psychiatric injury. He rated Igawa's overall level of psychiatric impairment as being "moderate - 35%." Of that figure, Dr. Ginandes explained that "5% is due to his prior head injury and prior history, and 30% is due to his industrial injury of October 1 [sic], 1991." Dr. Ginandes noted that he saw no evidence of any malingering or conscious exaggeration of symptoms in his examination of Igawa.

The record also contains a June 28, 1992 report by Dr. James F. Pierce, one of the insurer's independent medical examiners. In it, Dr. Pierce noted that there does appear to have been a dramatic increase in Igawa's headaches after the work injury, and that

I do not think his headaches are related

to his temporal lobe seizures nor to his head

injury of 1975. There are scattered notes

throughout his record of headaches. The

headaches he describes took a rather dramatic

change since his accident of October. I think

the accident combined with the associated

stressors are responsible for the majority of

his headache problems now.



As summarized by Dr. Ginandes, "[t]here seems to have been considerable controversy among physicians as to what role his earlier head injury played in his neurological disorder, and as to what role other stresses have played in his development of his depression and/or his adjustment disorder." The reports of Drs. Nicholson, Bergmanis and Bussey directly conflict with those of Drs. Sakoda, Ginandes and Pierce, giving rise overall to a reasonable doubt as to the existence of work-connected PPD.

In instances where the testimony of two doctors directly conflict on the issue of an injury's causal connection to the claimant's employment activity, the legislature has mandated that the conflict should be resolved in the claimant's favor. Chung, 63 Haw. at 652, 636 P.2d at 727. The Hawaii Supreme Court has noted that, in Hawaii, the legislature has chosen to

"cast a heavy burden on the employer in

work[ers'] compensation cases. In its wisdom

in formulating public policy in this area of

the law, the legislature has decided that

work injuries are among the costs of

production which industry is required to

bear; and if there is reasonable doubt as to

whether an injury is work-connected, the

humanitarian nature of the statute demands

that doubt be resolved in favor of the

claimant." Akamine, 53 Haw. at 409, 495 P.2d

at 1166. It is the legislature's prerogative

to give the employee the benefit of the doubt

in any workers' compensation claim. HRS

§ 386-85 does just that.



Korsak, 94 Hawaii at 307, 12 P.2d at 1248 (emphasis in original).

Here, the Board simply rejected the medical reports of Drs. Sakoda and Ginandes as being "inconsistent with the minor nature of the work injury." Accordingly, because the workers' compensation statute mandates resolution of any reasonable doubt in favor of the claimant, the Board erred in reversing Igawa's award for permanent partial disability.

In this respect, we also observe that it is at least intuitively suggestive that the sequelae of Igawa's 1975 head injury had for all intents and purposes remitted entirely for about a decade before a similar syndrome arose shortly after his 1991 head injury. Under such circumstances, the suggestion that the 1991 industrial accident aggravated the preexisting condition naturally and ineluctably arises. (3)



B. The Board's Modification of the Disfigurement Award.

Igawa next argues that "the Board erred as a matter of

law in modifying the Director's disfigurement award" from $2,000.00 to $850.00.

HRS § 386-32 (Supp. 1999) provides, in pertinent part,

Disfigurement. In cases of personal injury resulting in disfigurement the director may award compensation not to exceed $30,000 as the director deems proper and equitable in view of the disfigurement. Disfigurement shall be separate from other permanent partial disabilities and shall include scarring and other disfiguring consequences caused by medical, surgical, and hospital treatment of the employee[.]



We are unable to determine from the record how the amount of the award was computed, either by the DLIR or by the Board. The Board, which reviews the DLIR's decisions de novo, ostensibly awarded $100.00 per inch of scar for Igawa's eight-and-one-half inch scar in reducing Igawa's disfigurement award from $2,000.00 to $850.00. However, the record contains neither a detailed description of Igawa's surgical scar nor a photograph or other illustration which would indicate the scar's precise placement, width, thickness, hue, etc. As there is no basis upon which to base a review of the Board's decision for abuse of discretion, we affirm the Board's disfigurement award in the amount of $850.00.





IV. Conclusion.

Based on the foregoing, we reverse the Board's Decision insofar as it reversed the Supplemental Decision of the DLIR awarding Igawa PPD benefits, and we affirm the Board's modification of the DLIR's disfigurement award.

DATED: Honolulu, Hawaii, February 2, 2001.





On the briefs:



Herbert R. Takahashi,

Stanford H. Masui,

Danny J. Vasconcellos,

Rebecca L. Covert

(Takahashi, Masui &

Vasconcellos) for

defendant-appellant.



Edie A. Feldman for

employer-appellee.

1. The original Decision and Order, filed on October 31, 1994, was amended to correct an error regarding Igawa's entitlement to temporary total disability benefits.

2. HRS § 386-32 (1993), provides, in pertinent part:



(a) Permanent partial disability. Where a work injury causes permanent partial disability, the employer shall pay the injured worker compensation in an amount determined by multiplying the effective maximum weekly benefit rate prescribed in section 386-31 by the number of weeks specified for the disability as follows:



. . . .



Disfigurement. In cases of personal injury resulting in disfigurement the director may award compensation not to exceed $15,000 as the director deems proper and equitable in view of the disfigurement. Disfigurement shall be separate from other permanent partial disabilities and shall include scarring and other disfiguring consequences caused by medical, surgical, and hospital treatment of the employee;



Other cases. In all other cases of permanent partial disability resulting from the loss or loss of use of a part of the body or from the impairment of any physical function, weekly benefits shall be paid at the rate and subject to the limitations specified in this subsection for a period that bears the same relation to a period named in the schedule as the disability sustained bears to a comparable disability named in the schedule. In cases in which the permanent partial disability must be rated as a percentage of the total loss or impairment of a physical or mental function of the whole person, the maximum compensation shall be computed on the basis of the corresponding percentage of the product of three hundred twelve times the effective maximum weekly benefit rate prescribed in section 386-31.



Payment of compensation for permanent partial disability. Compensation for permanent partial disability shall be paid in weekly installments at the rate of sixty-six and two-thirds per cent of the worker's average weekly wage, subject to the limitations on weekly benefit rates prescribed in section 386-31.









Unconditional nature and time of commencement of

payment. Compensation for permanent partial

disability shall be paid regardless of the earnings of

the disabled employee subsequent to the injury.

Payments shall not commence until after termination of

any temporary total disability that may be caused by

the injury.

3. We note that the Board apparently drew implicitly inconsistent conclusions. By modifying -- instead of reversing -- the disfigurement award, the Board implicitly affirmed the DLIR's finding that the surgery, and hence

the underlying injury and its disabling sequelae, was causally related to

Igawa's work injury.