ADJ15945803 · July 8, 2024

Petition dismissed as premature due to lack of evidence of good cause to set aside the OACR; matter returned to trial level for further proceedings to allow evidence and hearing

From the decision · page 1Applicant seeks reconsideration of a March 26, 2024 Order Approving Compromise and Release (OACR) issued by a workers' compensation administrative law judge (WCJ). The Compromise and Release (C&R) resolved applicant's claimed December 22, 2021 injury to her arm, wrist, fingers, and shoulders and was based upon the opinion of panel Qualified Medical Evaluator (QME), Dr. Stephanie Janiak. Applicant now seeks to set aside the OACR so that a new QME report that finds further impairment may be considered.

No evidence of good cause to set aside the OACR was admitted into the record

Favours Defendant prevailed

Without evidence, the Board could not evaluate the petition and dismissed it as premature

From the decision · page 3Here, applicant seeks to set aside the OACR, but no evidence of good cause has been admitted into the record. In the absence of evidence, we are unable to evaluate applicant's contentions. The Petition is therefore premature.

Found 22% permanent disability in initial report; supplemental report found increased impairment

From the decision · page 1Applicant seeks reconsideration of a March 26, 2024 Order Approving Compromise and Release (OACR) issued by a workers' compensation administrative law judge (WCJ). The Compromise and Release (C&R) resolved applicant's claimed December 22, 2021 injury to her arm, wrist, fingers, and shoulders and was based upon the opinion of panel Qualified Medical Evaluator (QME), Dr. Stephanie Janiak. Applicant now seeks to set aside the OACR so that a new QME report that finds further impairment may be considered.

Labor Code section 5803

Labor Code section 5803 provides the Appeals Board continuing jurisdiction to rescind, alter, or amend orders for good cause

Petition to set aside OACR must show good cause

From the decision · page 2Pursuant to Labor Code section 5803, "The appeals board has continuing jurisdiction over all its orders, decisions, and awards made and entered under the provisions of [Division 4]... At any time, upon notice and after the opportunity to be heard is given to the parties in interest, the appeals board may rescind, alter, or amend any order, decision, or award, good cause appearing therefor."

Cal. Code Regs., tit 8, 10700(b)

Cal. Code Regs., tit 8, 10700(b) requires the WCAB to inquire into adequacy of C&R agreements and may set hearings to determine approval

Governs approval and setting aside of C&R agreements

From the decision · page 2Further, the "Workers' Compensation Appeals Board shall inquire into the adequacy of all Compromise and Release agreements and Stipulations with Request for Award and may set the matter for hearing to take evidence when necessary to determine whether the agreement should be approved or disapproved, or issue findings and awards." (Cal. Code Regs., tit 8, § 10700(b).) The legal principles governing Compromise and Release agreements are the same as those governing other contracts. (Burbank Studios v. Workers' Comp. Appeals Bd. (1982) 134 Cal.App.3d 929, 935.) For a Compromise and Release agreement to be effective, the necessary elements of a contract must exist, including an offer of settlement of a disputed claim by one of the parties, and an acceptance by the other (Id.) There can be no contract unless there is a meeting of the minds and the parties mutually agree upon the same thing. (Civ. Code, § 1550, 1565, 1580; Sackett v. Starr (1949) 95 Cal.App.2d 128; Sieck v. Hall (1934) 139 Cal.App.279, 291; American Can Co. v. Agricultural Ins. Co. (1909) 12 Cal.App. 133, 137.)

Good cause to set aside a C&R includes fraud, duress, mistake, invalidity, incompetency, minority

Good cause must be shown to set aside agreement

From the decision · page 3Once it is determined that an agreement is final, the party seeking to set aside the agreement must make a showing of good cause. Good cause includes fraud, duress, undue influence, mutual mistake of fact, mistake of law, invalidity of execution, incompetency, or minority at the time of execution of the agreement. (See California Workers' Compensation Law (Cont. Ed. Bar 4th Ed.) § 16.61 et seq.; see also Argonaut Ins. Exch. v. Industrial Acc. Com. (1958) 49 Cal.2d 706 [23 Cal.Comp.Cases 34]; Smith v. Workers' Comp. Appeals Bd. (1985) 168 Cal.App.3d 1160 [50 Cal.Comp.Cases 311]; Carmichael v. Industrial Acc. Com. (1965) 234 Cal.App.2d 311 [30 Cal.Comp.Cases 169]; Silva v. Industrial Acc. Com. (1924) 68 Cal. App. 510 [11 IAC 266]; City of Beverly Hills v. Workers' Comp. Appeals Bd. (1997) 62 Cal.Comp.Cases 1691 (writ den.); Bullocks, Inc. v. Industrial Acc. Com. (1951) 16 Cal.Comp.Cases 253 (writ den.); Pac. Indem. Co. v. Industrial Acc. Com. (1946) 11 Cal.Comp.Cases 117 (writ den.).) Whether good cause exists is case specific. The circumstances surrounding the execution and approval of the agreement must be assessed. (See § 5702; Weatherall, supra, 77 Cal.App.4th at pp. 1118-1121; Robinson v. Workers' Comp. Appeals Bd. (1987) 199 Cal.App.3d 784, 790-792 [52 Cal.Comp.Cases 419]; Huston v. Workers' Comp. Appeals Bd. (1979) 95 Cal.App.3d 856, 864-867 [44 Cal.Comp.Cases 798].)

No evidence of good cause to set aside the OACR was admitted into the record, making the petition premature

From the decision · page 3Here, applicant seeks to set aside the OACR, but no evidence of good cause has been admitted into the record. In the absence of evidence, we are unable to evaluate applicant's contentions. The Petition is therefore premature.