ADJ16859150 · August 29, 2025

Applicant did not present evidence of bad faith or willful failure to comply by defendant to support sanctions or attorneys' fees. WCJ's discretion to deny sanctions and fees was not abused.

From the decision · page 6Applicant's petition for penalties sought sanctions, penalties and attorneys' fees for the same alleged conduct: namely, defendant's failure to pay temporary disability in this case. Penalties under Labor Code section 5814, which apply when payment that is due is either delayed or denied, are an inducement for prompt payment, while sanctions under our Labor Code section 5813 are "designed to protect against litigation abuses, not to remedy or penalize delayed payments of awards." (Duncan v. Workers' Comp. Appl. Bd, (2008) 73 Cal. Comp. Cases 1197, 1202.) Bad faith actions or tactics "include actions or tactics that result from a willful failure to comply with a statutory or regulatory obligation," disrupt or delay proceedings, or that "are done for an improper motive or are indisputably without merit." (Title 8, Cal. Code Reg. section 10421(b).) Applicant has presented no evidence that would support a finding of sanctions.

Applicant did not present any specific evidence that defendant acted in bad faith or willfully failed to comply with statutory obligations.

Favours Defendant prevailed

This lack of evidence supported the denial of sanctions and attorneys' fees under Labor Code section 5813.

From the decision · page 6I did not make a finding that defendant engaged in bad faith actions or tactics in this case. Applicant did not present any specific evidence that defendants acted from a willful failure to comply with their statutory obligation to provide benefits, or acted with an improper motive when they did not pay TTD. The Petition for Reconsideration does not cite to any evidence in the record that would support an allegation of bad faith actions or tactics. Based on the facts presented at both the expedited hearing and the evidence submitted at the trial in this matter, I do not believe that there is a basis to award sanctions in this matter.

Labor Code section 5813; Cal. Code Regs., tit. 8, 10421

Discretionary power to order sanctions for bad-faith actions or tactics under Labor Code section 5813 and WCAB Rule 10421.

Sanctions are discretionary and require evidence of bad faith or willful failure to comply.

From the decision · page 3Pursuant to section 5813(a), the Workers' Compensation Appeals Board has the discretionary power to order the payment of sanctions for "bad-faith actions or tactics which are frivolous or solely intended to cause unnecessary delay." (Lab. Code, § 5813(a).) Bad-faith actions or tactics are defined as "actions or tactics that result from a willful failure to comply with a statutory or regulatory obligation, that result from a willful intent to disrupt or delay the proceedings of the Workers' Compensation Appeals Board, or that are done for an improper motive or are indisputably without merit" and include "[b]ringing a claim, conducting a defense or asserting a position: (A) That is: (i) Indisputably without merit; (ii) Done solely or primarily for the purpose of harassing or maliciously injuring any person; and/or (iii) Done solely or primarily for the purpose of causing unnecessary delay or a needless increase in the cost of litigation...." (Cal. Code Regs., tit. 8, § 10421(b)(6).)

Applicant did not present evidence of bad faith or willful failure to comply by defendant to support sanctions or attorneys' fees.

From the decision · page 6I did not make a finding that defendant engaged in bad faith actions or tactics in this case. Applicant did not present any specific evidence that defendants acted from a willful failure to comply with their statutory obligation to provide benefits, or acted with an improper motive when they did not pay TTD. The Petition for Reconsideration does not cite to any evidence in the record that would support an allegation of bad faith actions or tactics. Based on the facts presented at both the expedited hearing and the evidence submitted at the trial in this matter, I do not believe that there is a basis to award sanctions in this matter.