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Find Solutions & Strategies June 20, 2011 |
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Sanctions
Does a petition for reconsideration over a three cent dispute justify the imposition of sanctions? |
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A Note From the Editor |  |
Dear WC Professionals:
If you haven't already subscribed to this free eNewsletter, send me your name and email address with your request for the California workers' comp eNewsletter, and I'll add you to the distribution list.
Sincerely,
Robin E. Kobayashi, J.D.
LexisNexis Editorial & Content Development
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sanctions |
Was a Petition for Reconsideration Appropriate Where Error in Credit Awarded to Defendant Amounted to a "Paltry" Three Cents?
Recently, a panel of commissioners issued a panel decision addressing a petition for reconsideration filed over three cents. In Vadnais vs. Kraft Foods Nabisco, ADJ 2073289 and ADJ2667420, the WCJ found that defendant unlawfully took credit in ADJ2073289 for permanent disability payments in the amount of "$13,113.33" advanced in the companion case, ADJ2667420. Notwithstanding the unlawfulness of defendant's action, the WCJ allowed the credit for equitable reasons, although he separately issued a notice of intention to sanction defendant $2,500.00 for improperly unilaterally asserting the credit in ADJ2073289. In ADJ2667420 applicant's injury caused eight percent permanent disability, for which indemnity was payable in the sum of $3,360.00, "less credit for such payments previously made." The WCJ found that defendant had advanced permanent disability indemnity for this injury in the sum of $16,473.33 creating an overpayment in the sum of $13,113.33. Read more.
eNewsletter subscribers can link to the Vadnais panel decision and defendant's response cited in this article.
Lexis.com subscribers can link to all other cases and statutes cited in this article. Be sure you're already logged onto your lexis.com account. |
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almaraz/guzman ii |
5th District Finally Acts in Almaraz Appeal, by Richard M. Jacobsmeyer, Esq. The 5th Appellate District, after sitting on the defendant's appeal for over a year after briefing has been completed, issue a summary denial of the Petition for Writ of Review, thus ending the second prong of the appeal of the combined W.C.A.B. en banc decisions in what has commonly become known as Almaraz/Guzman II (or for those who are into texting AG2). Read more.
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important notice: corona panel decision |
In last week's "Sneak Preview" column of the eNewsletter, we reported the WCAB panel decision of Corona v. Aptos Christian Fellowship. On May 16, 2011, the WCAB on its own motion granted reconsideration of the March 1, 2011 Findings and Award, and rescinded its April 26, 2011 Opinion and Order Denying Reconsideration. To read the May 16th WCAB order, click here. We will continue to track this case for further developments.
Reminder: Practitioners should check the subsequent history of a panel decision before citing to it. |
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SNEAK PREVIEW: RECENT PANEL DECISION |
NOTE:This free eNewsletter reports only a handful of panel decisions each month. If you want notification of all 50 to 65 noteworthy panel decisions added each month to the Lexis database, please consider purchasing our new panel decisions reporter. Panel decisions are citeable, but not binding precedent.
Death Benefits; Dependency; Domestic Partners. WCAB held that WCJ incorrectly concluded that, pursuant to Labor Code � 3501(b), party in interest was domestic partner and dependent "surviving spouse" of applicant who died on 1/9/2009 as a result of a stroke suffered on 3/4/2008 and that she was not entitled to conclusive presumption of total dependency on that basis, when party in interest was not applicant's registered domestic partner as required and defined by Family Code � 297 and protections provided to "domestic partners" under Family Code � 297.5, requiring that they be treated same as a spouse, only apply if partners are registered as domestic partners pursuant to California law; WCAB found that, based on evidentiary record, applicant and party in interest were good faith members of the same household within meaning of Labor Code � 3503, and that party in interest was dependent on applicant before applicant incurred her industrial injury, and returned matter to WCJ to determine extent of party in interest's dependency and her entitlement to benefits. See Gladden panel decision.
Reminder: Practitioners should check the subsequent history of a panel decision before citing to it. |
blogs at the lexisnexis workers' comp law community |
Workers' Comp Fraud Blotter - Recent Arrests, Charges, Convictions, and Investigations (6/16/2011) - Psychologist Charged With Fake Postal Employee Fear of Dogs Disability Claim, by LexisNexis Workers' Compensation Law Community Staff. Read it.
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job posting |
WC Defense Associate. Brea office of Goldman, Magdalin & Krikes, LLP seeks attorney with minimum 5 years workers' comp defense experience, competitive salary & benefits. Submit in Word format cover letter, resume, salary history/requirements to dcaldarelli@gmklaw.com. |
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HOW TO ACHIEVE MEDICARE SECONDARY PAYER COMPLIANCe |
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citeability of panel decisions |
Practitioners should proceed with caution when citing to a panel decision that hasn't been designated as a "significant panel decision" by the Workers' Compensation Appeals Board, and should also verify the subsequent history of the panel decision. WCAB panel decisions are citeable authority, particularly on issues of contemporaneous administrative construction of statutory language [see Griffith v. WCAB (1989) 209 Cal. App. 3d 1260, 1264, fn. 2, 54 Cal. Comp. Cases 145]. However, WCAB panel decisions are not binding precedent, as are en banc decisions, on all other Appeals Board panels and workers' compensation judges [see Gee v. Workers' Comp. Appeals Bd. (2002) 96 Cal. App. 4th 1418, 1425 fn. 6, 67 Cal. Comp. Cases 236]. While WCAB panel decisions are not binding, the WCAB will consider these decisions to the extent that it finds their reasoning persuasive [see Guitron v. Santa Fe Extruders (2011) 76 Cal. Comp. Cases 228, fn. 7 (Appeals Board En Banc Opinion)].
Lexis.com subscribers can link to the cases cited above. |
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Designed specifically for Lexis.com subscribers only, this monthly reporter saves you research time so that you can quickly find recent panel decisions on key topics.
JULY ISSUE NOW IN PRODUCTION
We do the legwork for you: Our editorial consultants pour through hundreds of cases to find noteworthy decisions that you should know about.
What you get each month: Brief summaries of typically 40 to 65 cases, arranged by topic. Commentary articles written by guest contributors.
How you'll get it: (1) Word document (sent via email), which allows Lexis subscribers to link directly to the WCAB decisions on lexis.com; and (2) Print version, which can be stored in a binder. What it costs: List price - $204/yr. PRICE INCLUDES BOTH PRINT AND ELECTRONIC DOCUMENT |
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SANCTIONS, continued... |
On reconsideration, defendant contended the WCJ's decisions contained clerical errors, specifically; defendant contended it was entitled to a credit of $13,113.36 in ADJ2073289 and not $13,113.13. Defendant pointed to the Minutes of Hearing and Summary of Evidence (MOH/SOE) as well as evidence which showed that the actual amount of the permanent disability indemnity advanced in ADJ2667420 was $16,473.36 therefore creating an overpayment in the amount of $13,113.36. Defendant argued that it should be awarded a credit in that amount.
In addressing defendant's petition for reconsideration, the commissioners analyzed the statutes applicable to sanctions. The commissioners specifically addressed Labor Code Section 5813 as well as WCAB Rule 10561(b). In finding that a petition for reconsideration over a three cent dispute justified the imposition of sanctions, the commissioners noted:
"Defendant's petition for reconsideration does not reveal, and we can not imagine, what 'reasonable' justification underlies its request for reconsideration of an award of a credit that is short by three cents. Defendant is correct that there is a 'legal' ground: the evidence does not, strictly speaking, justify the finding of fact. The evidence, Joint Exhibit AA, demonstrates that the actual permanent disability indemnity advanced was $16,473.36. The decisions do, therefore, contain errors. That fact, alone, does not qualify as 'reasonable justification' for defendant's petition, when the errors are undeniably de minimus.
"Even if defendant did have a reason, not apparent to us, for seeking correction of such a trifling error, a petition for reconsideration was unnecessary. A WCJ may correct clerical errors at any time, even after the time for filing a petition for reconsideration has lapsed. (Toccalino v. Worker's Comp. Appeals Bd. (Sierra Vista Hospital) (1982) 128 Cal.App.3d 543 [47 Cal.Comp.Cases 145, 154-155].) A simple request to the WCJ to correct the clerical errors - better yet, a joint request - would have been sufficient. Even if defendant chose to file a petition, the caption of the petition should have specified that it sought correction of clerical errors only. By captioning the petition a "Petition for Reconsideration," a process was set in motion that invoked a substantial expenditure of labor at both the district office and the Office of the Commissioners.
"In addition, it is difficult to understand in what sense defendant was 'aggrieved' by an error amounting to three cents. (See Lab. Code. �� 5900, 5903.) To waste the Appeals Board's time and resources over a three-cent error does an outrageous disservice, not only to us and our staff, but to the many deserving litigants awaiting our decisions on matters of consequence."
For these reasons and due to defendant's failure to bring the incorrect amount also reflected in the Minutes of Hearing/Summary of Evidence to the WCJ's attention, the commissioners issued a notice of intention to sanction defendant Kraft Foods; defendant's attorney as well as the law firm wherein defense counsel worked, jointly and severally, in the amount of $500.00. The parties were given fifteen (15) days within which to file written objections, showing good cause why the sanctions should not be imposed and to "enlighten" the commissioners us as to whom, specifically, felt compelled to delay these proceedings by filing a frivolous petition for reconsideration over a "paltry three cents".
Subsequent to the Opinion on Order Granting the Petition for Reconsideration and Notice to Impose Sanctions discussed above, defendant did file a Response to the WCAB's Notice of Intention to Impose Sanctions. In the response, defendant argues that the error contained in Judge Samuel's decision justified its petition for reconsideration. Specifically, defendant argues in pertinent part:
"...there was reasonable justification in filing a petition for reconsideration to correct these errors, to insure that Kraft Foods was not responsible for paying more than it owed...If the errors were not corrected, applicant would have an award for three more cents that [sic] he is entitled to. Even if three cents is not a significant amount, Kraft Foods should not have to pay any amount more than it owes...Even though, as the Workers' Compensation Appeals Board points out in its Opinion, that filing a petition for reconsideration was unnecessary to correct a clerical error, Title 8, California Code of Regulations does not prohibit the filing of a petition for reconsideration to correct such errors."
Thus, defendant argues that whether the amount in dispute is three cents or three million dollars, the petition for reconsideration was, in fact, meritorious. Additionally, defendant makes the point that there is nothing, from a legal perspective, prohibiting a party from seeking to correct a clerical error by way of the filing of a petition for reconsideration. It will be interesting to see how the commissioners respond. We will continue to track this case and report any developments.
Reminder: Practitioners should check the subsequent history of this panel decision before citing to it.
Any information or opinion contained in this commentary are not necessarily endorsed by LexisNexis or its affiliates or by the LexisNexis editorial consultants who review panel decisions.
� Copyright 2011 LexisNexis. All rights reserved. This article will be published in an upcoming issue of the California WCAB Noteworthy Panel Decisions Reporter. |
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enewsletter archives |
Take a deep dive into our past eNewsletters for 2011 and prior...warning - some links to articles may not work...report any linking problems to Robin.E.Kobayashi@lexisnexis.com.
June 13, 2011: A Balanced Approach to Litigation
http://archive.constantcontact.com/fs077/1102828640660/archive/1105844751127.html
June 6, 2011: Post-Valdez Defense Protocols
http://archive.constantcontact.com/fs077/1102828640660/archive/1105783834099.html
May 31, 2011: Stress-Related Compensable Consequence Injuries
http://archive.constantcontact.com/fs077/1102828640660/archive/1105669474005.html
May 23, 2011: Developing the Record
http://archive.constantcontact.com/fs077/1102828640660/archive/1105575703257.html
May 16, 2011: Overpayments
http://archive.constantcontact.com/fs077/1102828640660/archive/1105406423234.html
May 9, 2011: Third Party Cases
http://archive.constantcontact.com/fs077/1102828640660/archive/1105318030890.html
May 2, 2011: Temporary Total Disability
http://archive.constantcontact.com/fs077/1102828640660/archive/1105244021985.html
April 25, 2011: Non-MPN Physician Reports
http://archive.constantcontact.com/fs077/1102828640660/archive/1105193487500.html
April 20, 2011 (Special Alert): Valdez En Banc
http://archive.constantcontact.com/fs077/1102828640660/archive/1105235321520.html
April 18, 2011: 2011 Alphabet Soup
http://archive.constantcontact.com/fs077/1102828640660/archive/1105150789071.html
April 11, 2011 (Special Alert): Hernandez significant panel decision
http://archive.constantcontact.com/fs077/1102828640660/archive/1105133131069.html
April 11, 2011: Rule 38 and Medical Examiner Reports
http://archive.constantcontact.com/fs077/1102828640660/archive/1105054845922.html
April 4, 2011: Penalties Post SB-899
March 28, 2011: Verification and Lien Claimants
http://archive.constantcontact.com/fs077/1102828640660/archive/1104894131044.html
March 21, 2011: Workers' Comp and Earthquakes
http://archive.constantcontact.com/fs077/1102828640660/archive/1104811663390.html
March 17, 2011 (Special Alert): Guitron En Banc
March 14, 2011: LC 5710 Attorney's Fees
http://archive.constantcontact.com/fs077/1102828640660/archive/1104743080821.html
March 7, 2011: Mediation
http://archive.constantcontact.com/fs077/1102828640660/archive/1104680877858.html
February 28, 2011: Arbitrations http://archive.constantcontact.com/fs077/1102828640660/archive/1104610163532.html
February 21, 2011: AMA Guides Rating: Roles of Rater, Judge, Physicians http://archive.constantcontact.com/fs077/1102828640660/archive/1104523390560.html
February 14, 2011: In Memoriam: Carrie Nevans http://archive.constantcontact.com/fs077/1102828640660/archive/1104442568858.html
February 7, 2011: Good Faith Personnel Actions http://archive.constantcontact.com/fs077/1102828640660/archive/1104364443854.html
January 31, 2011: Service in EAMS
January 24, 2011 (addendum): Sanctions; EAMS rules
http://archive.constantcontact.com/fs077/1102828640660/archive/1104294156793.html January 24, 2011: Public Self-Insured Employers
http://archive.constantcontact.com/fs077/1102828640660/archive/1104266393095.html
January 17, 2011: CHSWC Report on Liens
http://archive.constantcontact.com/fs077/1102828640660/archive/1104223885119.html
January 10, 2011: Temporary Workers
http://archive.constantcontact.com/fs077/1102828640660/archive/1104176109442.html
January 3, 2011: Permanent Total Disability & Total Loss of Future Earning Capacity
http://archive.constantcontact.com/fs077/1102828640660/archive/1104077989541.html
CLICK HERE TO ACCESS 2010 ARCHIVES. |
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