Permanente Medical Group v. Workers' Compensation Appeals Board

Opinion

CALDECOTT, P. J.

Petitioner, The- Permanente Medical Group, . Kaiser Foundation Hospitals (Kaiser), seeks a writ of review after the Workers’ Compensation Appeals Board denied Kaiser’s petition for reconsideration of an order approving a compromise and release agreement between respondent John E. Williams and Price Building Specialist, joined by its insurer, Argonaut Insurance Company.

Kaiser is a group health care provider which rendered medical services to John E. Williams for a heart condition allegedly incurred in the course of his employment with Price Building Specialist. On October

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11, 1973, Kaiser filed an application for adjudication of claim, alleging that it was entitled under Labor Code section 4903.1, subdivision (b), to reimbursement, as a lien claimant, for medical care provided to Williams.

A hearing was held on August 5, 1976, at which time Williams’ and Price’s compensation carrier, Argonaut Insurance, submitted a compromise and release agreement.

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The agreement specifically did not provide for Kaiser’s claim for reimbursement. Kaiser could have proceeded at that time to prove the industrial causation and to establish the amount of the lien to which it was entitled. It refused to do so, however, on two grounds: (1) that the workers’ compensation judge did not allow adequate time for a hearing on Kaiser’s claim; and (2) that Kaiser had an absolute right, under Labor Code section 4903.1, subdivision (c), to an award of a lien before the compromise and release was approved. The judge thereafter dismissed the entire case because of Kaiser’s “refusal to prosecute.” Before dismissing the action, the judge did not send Kaiser a notice of intention to dismiss, at least 15 days before dismissal, as required by Workers’ Compensation Appeals Board Rules of Practice and Procedure section 10594.

Kaiser petitioned the Workers’ Compensation Appeals Board for reconsideration on the grounds that 1) the judge improperly dismissed its application; and 2) under Labor Code section 4903.1, subdivision (c), the judge should not have approved the compromise and release since he did not simultaneously allow for Kaiser’s lien claim.