Faythe S. Takahashi and Hideo H. Takahashi v. Loomis Armored Car Service, and Liberty Mutual Insurance Company

This is an appeal from the district court’s allocation of attorney’s fees between an injured employee, Faythe S. Takahashi, and her employer’s compensation carrier, Liberty Mutual Insurance Co., in connection with the settlement of a third party action under Hawaii Revised Statute (HRS) § 386-8. The carrier contends that the district court improperly calculated the employer’s proportionate share of attorney’s fees. We affirm.

For job-related injuries, Mrs. Takahashi received a workers’ compensation award of $40,906.93, to be paid over an extended period of time. She then commenced and settled a third party action, under HRS § 386-8, against Loomis Armored Car Service.

HRS § 386-8 provides that if a job-related injury gives rise to tort liability in a party other than the employer or a fellow employee, the injured employee, receiving workers’ compensation benefits, may bring an action against that third party. Under the statute, if the injured employee prevails in the third party action, the employer, or the employer’s compensation insurance carrier, must be reimbursed for any benefits paid under a workers’ compensation award. Mrs. Takahashi settled her third party claim against…