ADJ7922408 · June 2, 2021

The WCJ's Findings and Awards were rescinded and Zurich American Insurance Company was joined as a party defendant, with the Compromise and Release approved, resolving the reconsideration petition issues.

From the decision · page 1I. Defendant, Hartford Fire Insurance Company (Hartford,) petitions for reconsideration of the Findings and Awards issued by the workers' compensation administrative law judge (WCJ) in these cases on May 15, 2020. In those decisions, the WCJ awarded applicant temporary and permanent disability compensation and further medical treatment against Hartford, which had previously stipulated to have provided workers' compensation insurance coverage to the employer Fred Loya Insurance, at the time of applicant's injuries. Hartford contends in its petition for reconsideration that the WCJ erred in not relieving Hartford of its stipulation to insurance coverage and in not joining Zurich American Insurance Company (Zurich) as a party defendant. Applicant filed an answer contending that Hartford's petition for reconsideration should be denied. The WCJ issued a report in which she recommended that reconsideration be denied. Subsequently, at our request applicant and Hartford participated in a commissioners' settlement conference. Zurich also participated in the commissioners' settlement conference but has never been joined as a party defendant in these cases. Applicant, Hartford and Zurich agreed

Hartford Fire Insurance Company had stipulated to insurance coverage for the employer at the time of applicant's injuries.

Favours Applicant prevailed

This stipulation was challenged by Hartford in the petition for reconsideration, which was denied, leading to the compromise and release agreement.

From the decision · page 1I. Defendant, Hartford Fire Insurance Company (Hartford,) petitions for reconsideration of the Findings and Awards issued by the workers' compensation administrative law judge (WCJ) in these cases on May 15, 2020. In those decisions, the WCJ awarded applicant temporary and permanent disability compensation and further medical treatment against Hartford, which had previously stipulated to have provided workers' compensation insurance coverage to the employer Fred Loya Insurance, at the time of applicant's injuries. Hartford contends in its petition for reconsideration that the WCJ erred in not relieving Hartford of its stipulation to insurance coverage and in not joining Zurich American Insurance Company (Zurich) as a party defendant. Applicant filed an answer contending that Hartford's petition for reconsideration should be denied. The WCJ issued a report in which she recommended that reconsideration be denied. Subsequently, at our request applicant and Hartford participated in a commissioners' settlement conference. Zurich also participated in the commissioners' settlement conference but has never been joined as a party defendant in these cases. Applicant, Hartford and Zurich agreed

Applicant, Hartford, and Zurich participated in a commissioners' settlement conference and agreed to resolve claims by compromise and release.

Favours Applicant prevailed

The agreement resolved the reconsideration petition and claims, leading to approval of the compromise and release and rescission of prior Findings and Awards.

From the decision · page 2to resolve applicant's claims in these cases and Hartford's potential claim for contribution against Zurich by compromise and release.

California Labor Code

Labor Code section 5001

Governs validity of release of liability or compromise agreement requiring approval by appeals board or referee.

From the decision · page 2II. Labor Code section 5001 states in pertinent part that "[n]o release of liability or compromise agreement is valid unless it is approved by appeals board or referee." WCAB Rule 10700 states that:

California Labor Code

Labor Code section 5002

Requires filing and approval of release or compromise agreement by appeals board, enabling entry of award based on the agreement.

From the decision · page 2Labor Code section 5002 states that: "A copy of the release or compromise agreement signed by both parties shall forthwith be filed with the appeals board. Upon filing with and approval by the appeals board, it may, without notice, of its own motion or on the application of either party, enter its award based upon the release or compromise agreement."

California Code of Regulations, title 8, section 10700

WCAB Rule 10700

Board's inquiry into adequacy of compromise and release agreements and stipulations with request for award, with authority to hold hearings and issue findings and awards.

From the decision · page 2"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.)