ADJ2515690 · March 16, 2022

The WCJ found permanent total disability caused by work injuries; Farmers contested this finding; the WCAB rescinded the WCJ's findings and approved a Compromise and Release settlement instead.

From the decision · page 1I. Defendant, Farmers Insurance Group/Mid-Century Insurance Company (Farmers) petitioned for reconsideration of the Findings, Award and Order issued by the workers' compensation administrative law judge (WCJ) in this matter on August 27, 2021. In that decision, the WCJ found that applicant, sustained injuries to his neck, low back, upper extremities, psyche, shoulders, legs, clavicle, and head arising out of and in the course of the employment as an auto body prep man on May 23, 1995, and January 7, 1999, by defendant, Studebaker Services Auto Body, causing permanent total disability and need of further medical treatment. The WCJ awarded benefits against Farmers and defendant, State Compensation Insurance Fund (SCIF), both of which insured the employer for workers' compensation liability during certain periods. The WCJ ordered Farmers to administer the award and reserved jurisdiction to enforce Farmers' right to contribution from SCIF for 50% of the benefits paid. Farmers contends in its petition for reconsideration that the WCJ erred in finding that applicant's injuries caused permanent total disability.

Favours neutral

The settlement replaced the WCJ's findings and award, leading to approval by the WCAB.

applicant sustained injuries to neck, low back, upper extremities, psyche, shoulders, legs, clavicle, and head arising out of employment on May 23, 1995, and January 7, 1999.

Favours Applicant prevailed

These injuries were the basis for the WCJ's finding of permanent total disability and the subsequent settlement.

From the decision · page 1I. Defendant, Farmers Insurance Group/Mid-Century Insurance Company (Farmers) petitioned for reconsideration of the Findings, Award and Order issued by the workers' compensation administrative law judge (WCJ) in this matter on August 27, 2021. In that decision, the WCJ found that applicant, sustained injuries to his neck, low back, upper extremities, psyche, shoulders, legs, clavicle, and head arising out of and in the course of the employment as an auto body prep man on May 23, 1995, and January 7, 1999, by defendant, Studebaker Services Auto Body, causing permanent total disability and need of further medical treatment. The WCJ awarded benefits against Farmers and defendant, State Compensation Insurance Fund (SCIF), both of which insured the employer for workers' compensation liability during certain periods. The WCJ ordered Farmers to administer the award and reserved jurisdiction to enforce Farmers' right to contribution from SCIF for 50% of the benefits paid. Farmers contends in its petition for reconsideration that the WCJ erred in finding that applicant's injuries caused permanent total disability.

Farmers Insurance Group/Mid-Century Insurance Company petitioned for reconsideration challenging the finding of permanent total disability.

Favours Defendant prevailed

This challenge led to reconsideration and eventual settlement approval by the WCAB.

From the decision · page 1I. Defendant, Farmers Insurance Group/Mid-Century Insurance Company (Farmers) petitioned for reconsideration of the Findings, Award and Order issued by the workers' compensation administrative law judge (WCJ) in this matter on August 27, 2021. In that decision, the WCJ found that applicant, sustained injuries to his neck, low back, upper extremities, psyche, shoulders, legs, clavicle, and head arising out of and in the course of the employment as an auto body prep man on May 23, 1995, and January 7, 1999, by defendant, Studebaker Services Auto Body, causing permanent total disability and need of further medical treatment. The WCJ awarded benefits against Farmers and defendant, State Compensation Insurance Fund (SCIF), both of which insured the employer for workers' compensation liability during certain periods. The WCJ ordered Farmers to administer the award and reserved jurisdiction to enforce Farmers' right to contribution from SCIF for 50% of the benefits paid. Farmers contends in its petition for reconsideration that the WCJ erred in finding that applicant's injuries caused permanent total disability.

Labor Code section 5001

Labor Code section 5001

No release of liability or compromise agreement is valid unless approved 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:

Cal. Code Regs., tit. 8, 10700

WCAB Rule 10700

The WCAB shall inquire into adequacy of compromise and release agreements and may hold hearings to determine approval.

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.)

Labor Code section 5002

Labor Code section 5002

Upon filing and approval by the appeals board, an award may be entered based on the release or compromise agreement.

From the decision · page 2"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."