DAGS Hawaii Tort Claim: Form, Filing, and Denials

To file a tort claim against the State of Hawaii, complete the “Claim for Damage or Injury” form from the Department of Accounting and General Services (DAGS) Risk Management Office, submit it by email or mail within two years of the incident, and be prepared to file suit in circuit court if the claim isn’t settled. Claims are generally resolved within 60 days of receipt.¹

Who Handles the Claim

The Risk Management Office (RMO) inside DAGS is the entry point for tort claims against the state. It processes informal claims under the Statewide Risk Management Program, investigates what happened, and works with the Department of the Attorney General to decide whether the state will pay.¹ The State Comptroller, acting through the risk manager and in conjunction with the Attorney General, has authority to compromise and settle tort claims.²

Typical claims involve a state vehicle hitting your car, a slip-and-fall on state-maintained property, or damage from state construction or maintenance work.

What the Claim Form Requires

The RMO will not process a form that isn’t fully completed and signed.³ At a minimum, provide:

Your full name, home address, phone numbers, and email.
A thorough written description of what happened, including all known facts and the people or property involved.³
The state agency or employee involved.
A specific dollar amount for property damage, personal injury, or both. You aren’t required to submit supporting documentation at filing, but if the state accepts your claim you’ll need to back the number up with independent verification.⁴

Even though it isn’t mandatory, attach what you have. Photographs of the damage, a police report, repair estimates, medical records, witness names and contact information, and a map or diagram of the scene all help the RMO evaluate the state’s exposure and move faster.

How and When to Submit

Send the form by email to dagsrmo@hawaii.gov or by mail to P.O. Box 119, Honolulu, HI 96810-0119.¹ If you mail it, use certified mail with return receipt requested so you have proof of delivery. Hand-delivery to the Honolulu office is also an option.

You have two years from the date the claim accrued, which is the date you were injured or your property was damaged. Medical tort claims follow a different limitations period under HRS Section 657-7.3.⁵ File early. If the RMO asks for more information and you’re already close to the deadline, you can run out of time to both negotiate and file suit.

What Happens After You File

Once the RMO has your completed form, it opens an investigation, pulls information from the state agency involved, and consults with the Attorney General about the state’s legal exposure. Most claims are resolved within 60 days of receipt.¹

If the state accepts liability and agrees on a figure, the RMO settles the claim administratively. Accepting a settlement typically requires signing a release that bars any further claims related to the same incident. Read it carefully before you sign, because it closes the door permanently.

Keep copies of everything you submit and every response you receive. If the matter moves to court, that file becomes the foundation of your case.

When State Immunity Blocks the Claim

Hawaii waives sovereign immunity under HRS Chapter 662, the State Tort Liability Act, and accepts liability for its employees’ torts “in the same manner and to the same extent as a private individual under like circumstances.”⁶ That waiver has holes. HRS Section 662-15 lists seven categories where the state keeps full immunity.⁷ Two of them block most claims:

Discretionary functions. If your injury traces to a policy-level decision, or to a state employee executing a statute or regulation with due care, the state is immune. A road crew ignoring a known pothole is potentially liable; a department choosing to prioritize one highway over another is not.
Intentional torts. Assault, battery, false imprisonment, false arrest, malicious prosecution, abuse of process, defamation, fraud, and interference with contract rights are all excluded. If a state employee deliberately harmed you, Chapter 662 won’t help, though you may have a claim against the employee personally.

The other categories cover tax assessment and collection, claims for which another Hawaii statute provides a remedy, Hawaii National Guard combat activities, incidents outside the United States, and acts or omissions of boating enforcement officers.⁷

What You Can and Can’t Recover

Even when the state is liable, two limits are baked into the statute: no pre-judgment interest, and no punitive damages.⁶ Your recovery is limited to compensatory damages for actual losses: medical bills, repair costs, lost income, and similar out-of-pocket harm. Even where a state employee acted recklessly, there is no award designed to punish the state.

If Your Claim Is Denied

If the RMO denies your claim or offers a settlement that doesn’t cover your losses, you can sue in Hawaii circuit court. The court has jurisdiction over tort claims against the state for money damages involving injury, property loss, or wrongful death caused by state employees acting within the scope of their duties.⁸

The same two-year statute of limitations applies, measured from the date of the incident, not the date of the denial.⁵ Time spent waiting for the RMO’s decision does not pause that clock. An attorney experienced in government tort claims can help you decide whether the likely recovery justifies the cost of litigation.

County and City Claims Go Elsewhere

DAGS handles state claims only. If a city bus hit you, or you tripped on a county-maintained sidewalk, the state form won’t satisfy the county notice requirement. Hawaii’s four counties (Honolulu, Maui, Hawaii, and Kauai) operate under HRS Section 46-72, which requires written notice to the person named in the county charter or, if none is specified, to the county council chairperson or county clerk. The notice must describe when, where, and how the injury occurred, the extent of the damage, and the amount claimed. Counties also carry a two-year deadline.⁹

Before filing, check who maintains the road, building, or vehicle involved.

Taxes on a Settlement

How the IRS treats your settlement depends on what it compensates. Damages received for personal physical injuries or physical sickness are excluded from gross income, which covers the injury itself, related pain and suffering, and medical expenses you haven’t already deducted on a prior return.¹⁰ Property damage settlements are generally not taxable up to your adjusted basis in the property; amounts above that basis can produce a taxable gain. The IRS looks at what the money actually compensates, not the label the parties use.¹¹

Because the State Tort Liability Act already bars punitive damages and pre-judgment interest, the two most commonly taxable pieces of a tort settlement won’t appear here. Emotional distress compensation not tied to a physical injury is taxable. Talk to a tax professional before signing so you know what you’ll actually keep.

1
Department of Accounting and General Services. Risk Management Office
2
FindLaw. Hawaii Revised Statutes 41D-2
3
State of Hawaii Department of Accounting and General Services. Claim for Damage or Injury
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State of Hawaii Department of Accounting and General Services. General Public Claim Instructions
5
Justia. Hawaii Revised Statutes 662-4 – Statute of Limitations
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Justia. Hawaii Revised Statutes 662-2 – Waiver and Liability of State
7
Justia. Hawaii Revised Statutes 662-15 – Exceptions
8
Justia. Hawaii Code Chapter 662 – State Tort Liability Act
9
FindLaw. Hawaii Revised Statutes 46-72
10
Office of the Law Revision Counsel. 26 USC 104 – Compensation for Injuries or Sickness
11
Internal Revenue Service. Tax Implications of Settlements and Judgments