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Munoz v. Chandler2/21/2002
Plaintiffs-Appellants Connie B. Munoz (Connie) and Peter Muñoz (Peter) (collectively, the Munozes or Appellants) appeal from the May 10, 2000 judgment entered by the Circuit Court of the Second Circuit (the circuit court), Judge Joseph E. Cardoza presiding, that affirmed the October 30, 1998 decision of the Appeals Administrator (the AA) for Defendant-Appellee Susan M. Chandler (Chandler), Director of the Department of Human Services for the State of Hawaii (DHS), which concluded that DHS had overpaid the Muñozes $294.00 in Aid to Families with Dependent Children (AFDC) benefits during September and October 1996.
The Muñozes' primary contentions on appeal are as follows:
(1) DHS deprived them of their constitutional right to due process by conducting their hearing to challenge the amount of their overpayment by telephone; (2) DHS violated its own rules in conducting the telephone hearing; (3) DHS violated government rules and law by refusing to specify the legal authority under which the telephone hearing was to be held; and (4) DHS improperly deprived them of their right to have legal counsel present at their hearing.
Based on our review of the record, we agree with the Muñozes' last three contentions. Accordingly, we vacate the circuit court's judgment and remand this case to the circuit court, with instructions that this case be remanded to DHS for a new hearing. Our disposition of this appeal renders it unnecessary to address the Muñozes' first contention.
BACKGROUND
In 1996, the Munozes, who are both disabled from working, were receiving AFDC benefits for themselves and their son, Miguel, who was born on August 30, 1978. On September 25, 1996, DHS sent Connie a notice that stated, in relevant part, as follows:
EFFECTIVE NOVEMBER 1996 YOUR FINANCIAL ASSISTANCE PAYMENT SHALL BE STOPPED BECAUSE THERE IS NO ELIGIBLE DEPENDENT CHILD IN THE HOME. *MIGUEL MU OZ HAS TURNED 18 ON 08/30/96 AND HAS GRADUATED FROM HIGH SCHOOL. SINCE YOU ARE ENTITLED TO TIMELY NOTICE OF FINANCIAL CLOSURE[,] BENEFITS FOR SEPTEMBER AND OCTOBER 1996 WERE AUTHORIZED BUT WILL BE CONSIDERED AN OVERPAYMENT FOR THOSE MONTHS--NOTICE TO BE SENT[.]
THIS ACTION IS BASED ON HAWAII PUBLIC WELFARE MANUAL SECTION(S):
17-649-4, 17-656-3, 17-656-4.
FAIR HEARING RIGHTS AND OTHER IMPORTANT INFORMATION ARE EXPLAINED ON THE BACK OF THIS NOTICE. IF YOU WISH CONTINUED BENEFITS WHILE AWAITING A FAIR HEARING, YOUR WRITTEN REQUEST FOR A FAIR HEARING MUST BE RECEIVED BY OCTOBER 04, 1996.
HOUSEHOLD WILL NO LONGER BE ELIGIBLE FOR FREE NO-FAULT CAR INSURANCE EFFECTIVE OCTOBER 31, 1996. YOU MAY REAPPLY FOR FINANCIAL BENEFITS UNDER THE GENERAL ASSISTANCE PROGRAM FOR YOU AND SPOUSE[.] HOWEVER[,] THIS PROGRAM DIFFERS FROM THE AFDC PROGRAM YOU HAVE PARTICIPATED IN. IF INTERESTED[,] COME IN TO COMPLETE AN APPLICATION. (Footnotes added.)
The reverse of the notice provided, in relevant part:
If you do not agree with the intended change, you may call your worker or you may have an informal review meeting with your worker's supervisor to present evidence to prevent or correct the intended action.
You also have the right to request a fair hearing before a Hearing Officer. This request must be in writing on our Department's form or any other paper (oral request acceptable for food stamps) and must state why you don't agree with the change. Our office must receive this request within 90 days of the date of this notice.
The Muñozes responded to the foregoing notice by a November 23, 1996 letter, in which they explained that had they been given timely notice of the change in status, they w
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