The Big Four
Stephen L. Kline, Esq.
ARMSTRONG LAW FIRM
stephenk@arm-law.com
The WCAB has been busy and they announced two en Banc decisions
and one Significant Panel Decision. However, they were upstaged
by the Second Appellate District with the long awaited decision
in the Remedy Temps (Micelli) case. In defences to the Judges,
we’ll start there …..
Last year, the WCAB in an en Banc decision rendered an opinion
regarding temporary agencies, bankrupt insurance carriers and the
company that hired the temporary agency. The WCAB found that if
a temporary agency’s insurance carrier becomes insolvent
and the Company who contracted with the Temporary agency had a
solvent workers compensation carrier, then via an interpretation
of the Insurance Code, that solvent carrier, would be “other
insurance” relieving CIGA of any responsibility.
The controversial decision was placed on hold by the granting
of a Writ of Review by the Appellate Court.
General Casualty Insurance v WCAB & CIGA (Remedy Temps),
2004 Cal App Lexis 1754 (2 nd District) issued a lengthy analysis
and sixty footnotes of the Insurance Code. In the end, the decision
remains unchanged.
The Court said, “Based on statutory language, legislative
history and judicial decisions, we conclude that employer joint
and several liability to employees for workers' compensation benefits
is not extinguished by Ins. Code section 11663 or section
3602, subdivision (d). In addition, Ins. Code section 11663 is
expressly limited to insurers, which does not include CIGA. In
regards to section 3602(d), the statute allows general and special
employers to avoid duplicate insurance coverage and premium by
agreeing to insure for workers' compensation with a single insurer.”
The way for a Company to avoid this situation with its Temporary
Agency is for the Company to obtain “workers' compensation
coverage from two separate insurers.” Provisions in the coverage
would exclude special temporary employees.
But wait just a minute … this may not be over. The principal
in this matter Remedy Temps has announced that they will seek a
review by the California Supreme Court. Until that Writ is granted,
the relationship between temporary agencies and companies will
be under closer scrutiny.
The WCAB, en Banc, gave some direction as to the
retroactivity of SB 899 in the case, Scheftner v Rio Linda School
District. The WCAB said , “ we hold that submission orders
and orders closing discovery, that issued prior to the enactment
of SB 899 on April 19, 2004, are "existing" orders that
cannot be reopened due to the prohibition set forth in Section
47. We also hold that absent existing orders as so defined the
amendments, additions, or repeals of SB 899 apply prospectively
on or after April 19, 2004, to all cases, regardless of the date
of injury, unless otherwise specified in SB 899”.
Thus, if there was an Order before April 19, 2004
closing discovery then that Order may not be reviewed because of
the changes made in SB 899. A question is raised though, are the
pre-SB 899 medical reports which do not discuss apportionment pursuant
to the new code, are they insubstantial and not admissible?
The more important part of this decision may be
in its affirmation that SB 899 applies to all cases, regardless
of the date of the injury. The WCAB takes as well as gives.
Willette v Au Electric Corporation (SCIF) is another
en Banc decision which on the surface has some helpful language,
but with close analysis raises some very challenging questions
for the future of the SB 899 “reforms”.
The WCAB allowed a Utilization Report to be admitted
into evidence without signature and without verification per Labor
Code section 139.3. However, in an unrepresented case, they indicated
that the Judge can consider the following reports without preference:
The primary treater’s recommendations; the UR non-certification;
and the Panel QME’s report. Further neither the PTP nor UR
may comment on the Panel QME’s decision.
The WCAB did not respond to any ACOEM issues raised
allowing the Panel QME to render an opinion and a the WCJ to decide
the case. Another San Jose decision where the employee was represented
and the WCJ did not allow the unsigned UR report to be admitted
is working its way through the WCAB.
Lastly, the WCAB issued a Significant Panel Decision
where a new kind of statute was created … “Ghost Statutes”.
Godinez v Buffets, Inc. commented that the Vocational Rehabilitation
statutes that were repealed by the 2003 legislation, but not reinstated
with SB 899 “they still have a shadowy existence for injuries
prior to January 1, 2004. Like ghosts “doomed for a certain
term to walk the night” ( Hamlet I, v), these statutes have
no material existence but linger until their work is done. Because
there is no other operative law, we hold that former section 4645
is a similar “ghost statute” that continues to govern
the timeliness of appeals from decisions of the Rehabilitation
Unit.”
A similar situation exists for the pre January 1,
2005 QME Process for represented applicants, where the statute
was repealed and nothing in the interim was done to replace it.
One could argue that the QME Ghosts are swirling around do their
thing.
I’ll refrain from making further analogies …. Let
your own ghoulish imaginations go wild! |