ADJ18918866 — California WCAB decision

What the panel ordered

Petition for Reconsideration granted; Sanctions Order rescinded; case returned to trial level for further proceedings.

Petition for Reconsideration filed by defendant Occusure Claims Services seeking relief from a Sanctions Order issued by a WCJ on April 17, 2025, for failure to appear at two hearings and failure to respond to a Sanctions Notice of Intention.

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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.

Sanctions under Labor Code §5813Defendant prevailed

The Appeals Board granted reconsideration because Occusure was erroneously joined, did not willfully ignore orders, and the failure to appear was due to clerical and administrative oversight, protecting due process rights.

The facts that decided it

What the panel treated as outcome-determinative, and which side it favoured.

Occusure was erroneously joined as a party and had no involvement in the claims.

Favours Defendant prevailed

This showed the failure to appear was not intentional but due to administrative oversight, supporting reconsideration.

The rules the panel named

Authorities as the decision cited them, with how this panel applied each one.

Labor Code section 5813

Labor Code section 5813 authorizes sanctions for failure to appear at hearings.

The WCJ had authority to issue sanctions for Occusure's failure to appear at the August 27, 2024 status conference and October 8, 2024 MSC.

From the decision · page 5It is undisputed that Occusure was named as a party in and served with the Amended Application on August 5, 2024. Consequently, Occusure was thereafter required to appear at every noticed hearing in these cases (excluding lien conferences and lien trials). (Cal. Code Regs., tit. 8, § 10752 (a).) It is also undisputed that Occusure was served with notice of but failed to appear at the October 8, 2024 MSC without communicating with anyone regarding its non-appearance. When a party fails to appear at an MSC without a showing of good cause, the WCJ may issue a notice of intention for any purpose allowed by WCAB Rule 10832, including to issue sanctions against that party. (Cal. Code Regs., tit. 8, § 10755(b), 100832(a)(3).) In addition, the failure to appear at a duly noticed status conference is a failure to comply with the court's order and is therefore sufficient cause to support the WCJ's Sanctions NOI based on section 5813 and WCAB Rule 10421. (Lab. Code, § 5813; Cal. Code Regs., tit. 8, § 10561(b)(4).) Therefore, the WCJ had the authority to issue the Sanctions NOI as a result of Occusure's failure to appear at the August 27, 2024 status conference and the October 8, 2024 MSC.

Board Rule 10561

Board Rule 10561 authorizes sanctions for failure to comply with court orders.

Sanctions were authorized for failure to appear at status conference and MSC.

From the decision · page 5It is undisputed that Occusure was named as a party in and served with the Amended Application on August 5, 2024. Consequently, Occusure was thereafter required to appear at every noticed hearing in these cases (excluding lien conferences and lien trials). (Cal. Code Regs., tit. 8, § 10752 (a).) It is also undisputed that Occusure was served with notice of but failed to appear at the October 8, 2024 MSC without communicating with anyone regarding its non-appearance. When a party fails to appear at an MSC without a showing of good cause, the WCJ may issue a notice of intention for any purpose allowed by WCAB Rule 10832, including to issue sanctions against that party. (Cal. Code Regs., tit. 8, § 10755(b), 100832(a)(3).) In addition, the failure to appear at a duly noticed status conference is a failure to comply with the court's order and is therefore sufficient cause to support the WCJ's Sanctions NOI based on section 5813 and WCAB Rule 10421. (Lab. Code, § 5813; Cal. Code Regs., tit. 8, § 10561(b)(4).) Therefore, the WCJ had the authority to issue the Sanctions NOI as a result of Occusure's failure to appear at the August 27, 2024 status conference and the October 8, 2024 MSC.

Code of Civil Procedure section 473

Code of Civil Procedure section 473 allows relief from sanctions for mistake, inadvertence, or excusable neglect.

Relief was granted due to clerical and administrative oversight, not willful misconduct.

From the decision · page 6Code of Civil Procedure section 473 states that we may, "upon any terms as may be just,

ADJ18918866 · July 7, 2025

What the panel ordered

What was disputed, and how it came out

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The rules the panel named

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