ADJ7894308 — California WCAB decision

What the panel ordered

WCAB affirms the F&A except amends permanent disability to 78% unapportioned for psychiatric and sleep-related injuries; defers attorney fees adjustment to parties with jurisdiction reserved to WCJ.

Petitions for reconsideration filed by defendants Church Mutual Insurance Company and State Compensation Insurance Fund challenging the January 31, 2021 Findings of Fact, Award and Order; WCJ found industrial injury and 70% permanent partial disability after nonindustrial apportionment; WCAB granted reconsideration and reviewed the record anew.

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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.

ApportionmentApplicant prevailedpsychiatric system · sleep

The WCAB found that the notice of contract non-renewal was an actual event of employment and thus not subject to apportionment; the apportionment opinions of the QMEs were not substantial evidence; applicant is entitled to unapportioned psychiatric and sleep-related disability.

From the decision · page 6We find defendant's argument in this respect to be unpersuasive, however, because the undisputed evidence establishes that applicant's psychiatric disability did not arise out of a generalized anxiety or fear of job loss. Rather, applicant's psychiatric disability arose in part from actual notice of non-renewal of his employment contract that occurred some three to four months prior to his last day worked. Framed in terms of the analysis of the Court of Appeal in Bryan, the notice of non-renewal was "something that [took] place" in the employment relationship and arose "out of an employee's working relationship with his or her employer." (Bryan, supra, 114 Cal.App.4th 1174, 1181.)

The facts that decided it

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

Notice of contract non-renewal was an actual event of employment and not subject to apportionment as a nonindustrial factor.

Favours Applicant prevailed

This fact led the WCAB to reject apportionment of psychiatric disability to the contract non-renewal and to award unapportioned psychiatric disability.

From the decision · page 6We find defendant's argument in this respect to be unpersuasive, however, because the undisputed evidence establishes that applicant's psychiatric disability did not arise out of a generalized anxiety or fear of job loss. Rather, applicant's psychiatric disability arose in part from actual notice of non-renewal of his employment contract that occurred some three to four months prior to his last day worked. Framed in terms of the analysis of the Court of Appeal in Bryan, the notice of non-renewal was "something that [took] place" in the employment relationship and arose "out of an employee's working relationship with his or her employer." (Bryan, supra, 114 Cal.App.4th 1174, 1181.)

The QMEs' apportionment opinions lacked independent substantial medical evidence and improperly aggregated multiple factors without adequate explanation.

Favours Applicant prevailed

This led the WCAB to reject the apportionment and award unapportioned permanent disability for psychiatric and sleep-related injuries.

From the decision · page 11Similarly, Dr. Pulera describes apportions 70 percent of applicant's sleep-related disability to the emotional sequelae secondary to cardiac disease, 20 percent to "emotional stress of termination," and 10 percent to amalgamated "nonindustrial factors," which include but are not limited to age, genetics, smoking, heart disease and nonindustrial psychiatric factors. (Ex. 5, Report of Mark Pulera, M.D., dated January 9, 2017, at p. 47.) As with the analysis of Dr. Delker, we decline to endorse "pass-through apportionment" from applicant's underlying cardiac injury and further note that the notice of non-renewal of applicant's contract is not subject to legal apportionment. With regard to the final 10 percent attributable to "nonindustrial factors," we observe that the QME has impermissibly amalgamated at least five independent factors of causation into single factor of apportionment. (Ibid.) Moreover, the QME describes the various factors as being "potential" and does not adequately explain how any of the factors are presently manifesting as permanent disability, either individually or in the aggregate. The opinion lacks specificity as to whether the risk factors identified for "heart disease" align or diverge from the apportionment analysis of regular physician Dr. Grodan and fails to identify with specificity the

What the panel did with the medical opinions

The role the physician served, and the weight the opinion carried. Physicians are named here as the decision names them; we do not score them.

QMERejected · psychology

Diagnosed Major Depressive Disorder and PTSD (resolved); apportioned 80% psychiatric disability to cardiac condition and 20% to contract non-renewal notice; apportionment not accepted by WCAB as contract non-renewal was an actual event of employment.

The notice of contract non-renewal was an actual event of employment and not a proper basis for apportionment.

From the decision · page 5applicant and diagnosed a Major Depressive Disorder and Post-Traumatic Stress Disorder (resolved). (Ex. 7, Report of Leine Delker, Ph.D., dated May 16, 2016, at p. 18.) In subsequent deposition testimony, Dr. Delker attributed 80 percent of applicant's psychiatric disability to his underlying cardiac condition, and 20 percent to the notice that applicant's contract would not be renewed. (Ex. 8, Transcript of the Deposition of Leine Delker, Ph.D., dated December 5, 2016, at p. 19:1.)

QMERejected · neurology

Apportioned 70% of sleep-related disability to emotional sequelae secondary to cardiac disease, 20% to emotional stress of termination, and 10% to nonindustrial factors; WCAB rejected pass-through apportionment and found the 10% apportionment improperly aggregated multiple factors without adequate explanation.

Pass-through apportionment not legally sustainable; nonindustrial factors improperly aggregated and not adequately explained.

From the decision · page 11Similarly, Dr. Pulera describes apportions 70 percent of applicant's sleep-related disability to the emotional sequelae secondary to cardiac disease, 20 percent to "emotional stress of termination," and 10 percent to amalgamated "nonindustrial factors," which include but are not limited to age, genetics, smoking, heart disease and nonindustrial psychiatric factors. (Ex. 5, Report of Mark Pulera, M.D., dated January 9, 2017, at p. 47.) As with the analysis of Dr. Delker, we decline to endorse "pass-through apportionment" from applicant's underlying cardiac injury and further note that the notice of non-renewal of applicant's contract is not subject to legal apportionment. With regard to the final 10 percent attributable to "nonindustrial factors," we observe that the QME has impermissibly amalgamated at least five independent factors of causation into single factor of apportionment. (Ibid.) Moreover, the QME describes the various factors as being "potential" and does not adequately explain how any of the factors are presently manifesting as permanent disability, either individually or in the aggregate. The opinion lacks specificity as to whether the risk factors identified for "heart disease" align or diverge from the apportionment analysis of regular physician Dr. Grodan and fails to identify with specificity the

ADJ7894308 · August 20, 2025

What the panel ordered

What was disputed, and how it came out

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The facts that decided it

What the panel did with the medical opinions

The rules the panel named

What proof carried it

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