What the panel ordered
The WCAB affirmed the Order Approving Compromise and Release issued by the WCJ on April 20, 2020, denying the petition for reconsideration filed by Insurance Company of the West.
Petitioner Insurance Company of the West filed a petition for reconsideration of the Order Approving Compromise and Release issued by the WCJ on April 20, 2020, which approved a settlement agreement between applicant and California Insurance Company.
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 and WCAB found that the compromise and release agreement was a valid contract between applicant and California Insurance Company, and Insurance Company of the West was not a party to it and thus had no standing to challenge its terms.
From the decision · page 1Defendant Insurance Company of the West seeks reconsideration of the Order Approving Compromise and Release (OACR) issued by the workers' compensation administrative law judge (WCJ) on April 20, 2020, wherein the WCJ approved a settlement agreement between applicant and California Insurance Company.
The facts that decided it
What the panel treated as outcome-determinative, and which side it favoured.
The compromise and release agreement was entered into by applicant and California Insurance Company, settling the entire cumulative trauma claim period except future medical treatment.
Favours Defendant prevailed
This established the validity of the settlement and that Insurance Company of the West was not a party and had no standing to challenge it.
From the decision · page 4On April 2, 2020 applicant and defendant California Insurance Company submitted a compromise and release of case number ADJ10671022. By its terms the compromise and release settled the entire period of the cumulative trauma, including all issues except future medical treatment. Petitioner was not a party to the compromise and release. An order approving the compromise and release issued on April 15, 2020. Insurance Company of the West filed a timely verified petition
The compromise and release agreement did not list any permanent disability advances or deductions in paragraph 7, and the settling parties chose the terms without participation from Insurance Company of the West.
Favours Defendant prevailed
This showed that the petitioner's claim that the order did not account for permanent disability advances was unfounded.
From the decision · page 5As indicated above, applicant and defendant California Insurance Company submitted a compromise and release of case number ADJ10671022 on April 2, 2020. Petitioner, Insurance Company of the West, was not a party to the compromise and release. However, by its terms the compromise and release settled the entire period of the cumulative trauma, including all issues except future medical treatment. Paragraph 7 of the compromise and release did not indicate any amount to be deducted from the settlement amount for permanent disability advances. An order approving the compromise and release issued on April 15, 2020.
The rules the panel named
Authorities as the decision cited them, with how this panel applied each one.
California Labor Code
Labor Code 5005
Allows compromise and release agreements in cumulative injury claims.
California Labor Code
Labor Code 5500.5
Defines cumulative injury and allows settlement by compromise and release.
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About this page
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