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Yukumoto v. Tawarahara

400 P.3d 486, 2017 WL 2303528 (2017)

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Yukumoto v. Tawarahara

Hawaii Supreme Court
400 P.3d 486, 2017 WL 2303528 (2017)

  • Written by Sheryl McGrath, JD

Facts

Hawaii Medical Service Association (HSMA) (plaintiff) issued a group health-insurance policy to Gregory Yukumoto (plaintiff). One day while Yukumoto was riding his moped, a car crashed into him, causing him serious injuries. The car was driven by Ruth Tawarahara (defendant). Tawarahara’s liability-insurance company settled Yukumoto’s claim for $1,150,000 attributable to general damages only, not to medical bills. HSMA paid approximately $326,000 for Yukumoto’s medical bills. Yukumoto received an additional $50,000 from his own liability-insurance company for underinsured-motorist coverage. Yukumoto and his spouse then sued Tawarahara in circuit court for lost wages and general damages. HSMA intervened in the lawsuit and asserted a lien and a subrogation right for the amount that HSMA had paid for Yukumoto’s medical bills. Yukumoto petitioned the circuit court to reject HSMA’s subrogation claim. Similarly, Tawarahara filed a motion to dismiss HSMA’s subrogation claim. In response, HSMA argued that the group health-insurance contract expressly granted a subrogation right to HSMA. The circuit court rejected HSMA’s argument and ruled that HSMA had no subrogation right. HSMA appealed.

Rule of Law

Issue

Holding and Reasoning (Recktenwald, C.J.)

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