Makaneole v. Pacific Insurance Co.12/5/1994
OPINION OF THE COURT BY MOON, C.J.
Plaintiff-appellant George Makaneole appeals from the circuit court's order granting summary judgment in favor of defendants-appellees Pacific Insurance Company and Sentinel Insurance Company (collectively, Pacific) and Alexander of Hawai'i, Inc. and Aetna Casualty and Surety Company (collectively, Aetna) [hereinafter, Pacific and Aetna are collectively referred to as appellees]. Makaneole, who was injured while working at a construction site, brought a personal injury action against, inter alia, Norman's Construction, Inc., Norbub, Inc., and N. Murakami, Inc. (collectively, Norman's). Makaneole obtained an order of entry of default and a default judgment against Norman's when Norman's failed to answer the complaint. However, before the default judgment was entered, all three corporations were involuntarily dissolved. Seeking to collect on the default judgment, Makaneole filed a complaint for declaratory relief against appellees. Pacific moved for summary judgment, which Aetna joined, asserting that the default judgment was null and void because Norman's was dissolved at the time the judgment was entered. The court granted summary judgment in favor of appellees, and Makaneole appealed.
Because we hold that Makaneole's claim was not abated by the dissolution of Norman's, we reverse the grant of summary judgment in appellee's favor.
I. BACKGROUND
We have reviewed this case previously. See Makaneole v. Gampon, 7 Haw. App. 448, 776 P.2d 402, aff'd in part, rev'd in part, 70 Haw. 501, 777 P.2d 1183 (1989); Makaneole v. Norman's Construction, Inc., No. 15984 (Haw. Oct. 20, 1994) (mem.). Because the previous opinions set forth the factual background in detail, here, we recount only the basic facts.
Kaua'i Development Corporation (KDC), the owner and developer of the Sheraton Kaua'i Resort, contracted with Dillingham Construction Corporation, doing business as Hawaiian Dredging and Construction Co. (HD&C;, the general contractor, for an expansion project at the resort. Makaneole, who had been hired as a journeyman carpenter by HD&C; worked on the project.
On September 18, 1981, HD&C;employees, including Makaneole, were attaching plywood sheathing to the dining room roof at the resort. A crane, operated by Drake Gampon, was used to lift the plywood to the rooftop. Gampon was employed by Norman's Construction, a consultant to HD&C;
While on the roof, an employee of HD&C; after removing a load of plywood secured by a "c-clamp" on the crane, failed to re-tighten the clamp. As the crane boom began to swing back, the "c-clamp" fell from the crane rigging and struck Makaneole on the head, resulting in serious injuries.
Subsequent to filing suit against numerous defendants, including Norman's, Makaneole obtained entry of default against Norman's on August 12, 1983, based on Norman's failure to answer the complaint. However, default judgment in the amount of $1,462,275.99 was not entered against Norman's until March 5, 1987.
Meanwhile, on December 7, 1983, Norman's Construction and N. Murakami, Inc. were involuntarily dissolved by the Director of the Department of Commerce and Consumer Affairs for failing to file the annual exhibit for two years. Norbub, Inc. was likewise involuntarily dissolved on November 8, 1984.
On September 1, 1987, Makaneole filed his complaint for declaratory relief against Pacific (KDC's insurer) and Aetna (HD&C;s insurer), seeking a determination that their respective comprehensive general liability policies afforded coverage for
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