Laucirica v. Workmen's Compensation Appeals Board

Opinion

DRAPER, P. J.

May the 10 percent “penalty” for unreasonable delay in payment of workmen’s compensation (Lab. Code, § 5814) be imposed for delay in payment of interest upon the award? That is the issue presented in these four cases. We issued writs of review, and have consolidated the four cases for disposition.

In each case, an award of compensation was made and each applicant made demand upon the compensation carrier for payment of interest upon the award. Payment of the principal of the award was seasonably made in each case, but in each the payment of interest was delayed. The board did not decide, in any of the cases, whether this delay in payment of interest was unreasonable. Rather, it denied the 10 percent addition in each case upon the supposed ground that interest can in no case be subject of such an addition.

The code (Lab. Code, § 5814) requires that “[w]hen payment of compensation has been unreasonably delayed or refused, ... the full amount of the . . . award shall be increased by 10 percent.” Compensation is defined by the same code to include “every benefit or payment conferred by Division 4 upon an injured employee” (Lab. Code, § 3207). Division 4 of the Labor Code, includes the section (5800) which provides that “[a]ll awards of the appeals board . . . shall carry interest at the same rate as judgments in civil actions.” Thus the statute, on its face, requires allowance of the added 10 percent for unreasonable delay in payment of interest, as well as any other benefits provided by division 4 of the code.

In March, our Supreme Court emphasized that “[Although denominated a ‘penalty’ the section [5814] is to be interpreted liberally, in accordance with the general purpose of the workmen’s compensation laws.”

(Kerley

v.

Workmen’s Comp. App. Bd., 4

Cal.3d 223, 227 [93 Cal.Rptr. 192, 481 P.2d 200]). That purpose is to extend the benefits of such laws “for the

[684]

protection of persons injured in the course of their employment”