Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Judiciary and Hawaiian Affairs, to which was referred S.B. No. 1638 entitled:

begs leave to report as follows:

The purpose of this measure is to provide the Supreme Court or the Labor and Industrial Relations Appeals Board the discretion to award proceeding costs and reasonable attorney's fees when an appeal is initiated by an employee who prevails. This measure also sets standards for use of this discretion.

The ILWU Local 142 submitted testimony in support of this measure. The Department of Labor and Industrial Relations, the Department of Human Resources for the City and County of Honolulu, and the Hawaii Insurers Council submitted written testimony in opposition to this measure. Oral testimony in opposition to the measure was also submitted by the Department of Human Resources Development.

Your Committee finds that under existing law, if an employer appeals a decision in a workers' compensation case and loses, reasonable attorney's fees and the costs of the appellate proceedings are assessed against the employer. However, employers enjoy an unfair advantage over injured employees in the litigation of workers' compensation claims because of the enormous expense associated with securing legal representation.

Your Committee determines that in the interest of leveling the playing field in the long and arduous process of litigating workers' compensation claims, the Supreme Court and the Labor and Industrial Relations Appeals Board should be vested with the authority to grant attorney's fees and costs at their discretion.

As affirmed by the record of votes of the members of your Committee on Judiciary and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1638 and recommends that it pass Third Reading.