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Wharton v. Hawaiian Electric Co.11/15/1995
OPINION OF THE COURT BY RAMIL, J.
This workers' compensation case is before us on appeal by claimant-appellant Gerald A. Wharton, Sr., from the Labor and Industrial Relations Appeals Board's (Board) decision and order denying his claim for benefits under the Hawai'i Workers' Compensation Law, Hawai'i Revised Statutes (HRS) chapter 386 (1993). The dispositive issue is whether Wharton suffered a psychological stress injury on or about February 11, 1989, arising out of and in the course of his employment. Because (1) Wharton's stress injury was a direct consequence of the disciplinary action imposed for his misconduct, and (2) Wharton's prohibited conduct exceeded the bounds of his employment duties, we hold that Wharton's stress injury falls outside the scope of worker's compensation coverage under applicable Hawai'i law. Accordingly, we affirm the Board's decision denying Wharton's claim.
I. BACKGROUND
Wharton began employment with Hawaiian Electric Company, Inc., (HECO) in 1959. Between 1988 and 1989, he served as an instrument and control supervisor whose duties included maintaining and repairing electronic controls.
Wharton had been the subject of several counseling sessions throughout 1988 for a series of behavior and performance problems that HECO did not believe constituted conduct befitting a supervisor. These incidents included parking violations, failing to return telephone messages in a timely manner, leaving the plant without notifying a supervisor, and failing to wear safety shoes. Most significant was Wharton's failure to follow company policy relating to the alteration of his time cards.
Upon investigation, HECO found that Wharton, without authority, changed two absences in his time cards to reflect industrial rather than sick leave. This violation of HECO's timekeeping procedure resulted in disciplinary action upon Wharton that included a twenty-day suspension for the unauthorized time card change incident, and a subsequent six-month probation for inappropriate behavior and job performance.
Wharton's twenty-day suspension extended from January 12, 1989, to February 10, 1989. He returned to work on probationary status on February 11, 1989, but, complaining of stomach pains, he left before his shift ended. Wharton worked again from February 13, 1989 through February 17, 1989, when he left again because of stomach pains. Although Wharton worked briefly again from March 6, 1989, he last reported to work on March 10, 1989.
On January 13, 1989, the day after his suspension, Wharton saw George Rhodes, Ph.D., a clinical psychologist. In his July 20, 1990 report, Dr. Rhodes stated that he treated Wharton utilizing psychotherapy from January 13, 1989 for stress reaction to his twenty-day suspension without pay and subsequent work-related stressors. Dr. Rhodes also stated that Wharton experienced increased physical symptoms and stress when "unrealistic expectations were placed on him in terms of a suspension and . . . probation[.]"
On December 8, 1992, the Board found that Wharton sustained a stress-related injury as a result of his suspension and probation for misconduct. The Board concluded that, because Wharton's misconduct was a prohibited act, it was "unrelated to the method or manner of performing his maintenance and repair duties as an instrument and controls supervisor." Thus, "[Wharton]'s stress injury resulted not from any incident or condition of his work, but from misconduct outside the scope of employment . . . [and, therefore, was] not compensable."
Wharton timely appealed the Board's decision and order.
II. Discussion
A. Stand
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