Daniels v. Workmen's Compensation Appeals Board

Opinion

KINGSLEY, J.

On June 15, 1970, petitioner sustained an industrial injury while in the employ of respondent American Building Maintenance Company (American), a permissibly self-insured employer. Shortly thereafter he filed a claim for workmen’s compensation and gave notice that he would seek the statutory penalty for delayed payments provided for in section 5814 of the Labor Code. In mid-August of 1970, after those actions but prior to any hearing, the employer paid temporary disability, in the amount of $764.33, covering the period from the date of injury through August 30, 1970. The company doctor released petitioner as fit for work on August 31, 1970. No further payments were made by the employer until after the" final award, which issued on July 16, 1971. That award granted: (1) Further temporary disability from August 31, 1970, through January 17, 1971, at $70.40 per week, amounting to $1,408; (2) Permanent disability of 13 percent, equivalent to 52 weeks, at $50.50 per week, amounting to $2,730; (3) Reimbursement for self-procured medical expense, amounting to $659.50; (4) Medical-legal costs; and (6) An award for future medical costs. The award also found that payment for temporary disability for the period of June-August, 1970,

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was unreasonably delayed

[506]

and awarded a 10 percent penalty based on the amount due for that period —i.e., a penalty of $76.43. Petitioner sought a reconsideration which was granted but which resulted in a decision confirming the award as made, with a clerical correction.

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Petitioner seeks to annul that decision. We conclude that the action of the appeals board was correct.

The case turns on the proper construction of section 5814 of the Labor Code, which reads as follows:

“When payment of compensation has been unreasonably delayed or refused, either prior to or subsequent to the issuance of an award, the full amount of the order, decision or award shall be increased by 10 percent. The question of delay and the reasonableness of the cause therefor shall be determined by the appeals board in accordance with the facts. Such delay or refusal shall constitute good cause under Section 5803 to rescind, alter or amend the order, decision or award for the purpose of making the increase provided for herein.”