Opinion ID: 1450006
Heading Depth: 1
Heading Rank: 3

Heading: Sifagaloa's Right to Service-Connected Total Disability ERS Benefits

Text: Sifagaloa's second contention is that the circuit court erred in affirming the Trustees' denial of full service-connected disability retirement benefits. We reiterate that an administrative agency's factual findings are presumptively correct and cannot be set aside on appeal unless they are shown to be clearly erroneous in view of the reliable, probative, and substantial evidence [8] on the whole record. Kaiser Foundation Health Plan v. Dept. of Labor, 70 Haw. 72, 81, 762 P.2d 796, 801 (1988); Mahiai v. Suwa, 69 Haw. 349, 358, 742 P.2d 359, 367 (1987); see also, Dedman v. Bd. of Land & Natural Resources, 69 Haw. 255, 266, 740 P.2d 28, 35 (1987), cert denied, 485 U.S. 1020, 108 S.Ct. 1573, 99 L.Ed.2d 888 (1988). A finding of fact is clearly erroneous when, despite evidence to support the finding, the appellate court is left with the definite and firm conviction that a mistake has been committed. Amfac, Inc. v. Waikiki Beachcomber Investment Co., ___ Haw. ___, 839 P.2d 10, 27 (1992) (citations omitted). The clearly erroneous standard of review, however, is not applicable to an agency's conclusions of law, which are freely reviewable on appeal. Kaiser Foundation Health Plan, 70 Haw. at 81, 762 P.2d at 801. The uncontroverted reliable, probative, and substantial testimonial evidence in this case leaves us with a definite and firm conviction that a mistake has been made. Accordingly, we hold that the Trustees erred in finding that although Sifagaloa is totally incapacitated from gainful employment, such incapacity is non work related. It therefore follows that the circuit court erred in affirming the Trustees' decision. HRS § 88-77 does not distinguish between physical and psychological disabilities. To qualify for service-connected total disability retirement, the statute only requires that a member of the ERS be permanently incapacitated as the natural and proximate result of an accident occurring while in the performance of some employment-related duty. The Medical Board found that Sifagaloa was permanently and totally incapacitated from further gainful employment of any kind. Nevertheless, the Medical Board determined that there was no causal connection between the accident and the disability. Hee's report, which was accepted by the Trustees and the circuit court, stated that no evidence was submitted by Sifagaloa to establish that Sifagaloa's psychological condition was caused by the trauma of the December 7, 1981 accident. Hee is simply wrong. Dr. Furukawa, the Medical Board's own psychiatric expert witness, expressly testified that Sifagaloa was suffering from a recognized disorder  Psychological Factors Affecting Physical Condition. He further opined that Sifagaloa was not a malingerer and that Sifagaloa's condition would persist even if a settlement were reached in the case. Most importantly, Dr. Furukawa unequivocally testified to the causal link between Sifagaloa's condition and the December 7, 1981 accident. [9] Dr. Furukawa's uncontroverted testimony was the only psychiatric evidence submitted by either party. We reverse the circuit court's order affirming the Trustees' decision and remand this case to the circuit court for entry of judgment in Sifagaloa's favor.