What the panel ordered
The lien filed by West Star Physical Therapy is barred by the statute of limitations and West Star is not liable for attorney's fees, costs, or sanctions.
Decision After Reconsideration by the Workers' Compensation Appeals Board rescinding the June 17, 2019 Findings and Orders and substituting new findings and orders.
What was disputed, and how it came out
Each issue the panel decided, with the reasoning it gave. An outcome is what this panel did on this record — not a rule, and not a prediction.
The WCJ imposed sanctions without proper notice and opportunity to be heard, violating due process; the Appeals Board found no bad faith or frivolous tactics by West Star and rescinded sanctions and fees.
From the decision · page 4II. Attorney's Fees, Costs, and Sanctions Next, we address the issue of attorney's fees, costs, and sanctions against West Star. Section 5813 authorizes the WCJ to impose sanctions and costs for "bad-faith actions or tactics that are frivolous or solely intended to cause unnecessary delay." (Lab. Code, § 5813(a).) The order of sanctions can be made "after written application by the party seeking sanctions or upon the appeal board's own motion." (Lab. Code, § 5813(b).) In order for the WCJ to impose sanctions and costs, the alleged offending party or attorney must be given notice and an opportunity to be heard. (Cal. Code Regs., tit. 8, former § 10561(a) now § 10421(a); see also Cal. Code Regs., tit. 8, § 10832(a)(3).) Here, the record reveals that the WCJ imposed sanctions upon lien claimant and ordered lien claimant to pay attorney's fees and costs without issuing a Notice of Intent. The WCJ listed sanctions, fees, and costs as one of the issues for trial as follows: "Sanctions, fees and costs for Lien Claimant having insufficient evidence to sustain its burden of proof.