Martin v. Industrial Accident Commission & Pacific Indemnity Co.

WHITE, J. Petitioner herein, the applicant before the Industrial Accident Commission, seeks annulment of an order of the commission which, among other things, denied approval of a compromise agreement entered into between petitioner and respondent insurance carrier upon the sole ground that such agreement was “not properly executed in accordance with the provisions of section 5003 of the Labor Code of the State of California.”

Petitioner sustained an injury in the course of his employment on August 27, 1945, resulting in temporary total disability, and on December 5, 1945, respondent commission entered its award in his favor for the sum of $30 per week, to continue during his disability or until further order of the commission. On October 17, 1946, respondent carrier filed a petition under section 4056 of the Labor Code seeking to have its liability terminated so far as the applicant’s disability was affected by his alleged unreasonable refusal to submit to [739]certain medical treatment. This petition was denied. Thereafter, on or about November 12, 1946, petitioner and respondent carrier pursuant to the provisions of sections 5000 to 5004 of the Labor Code, entered into a written compromise agreement which provided for the payment of a lump sum of $4,500 (including an attorney’s fee of $500). Upon filing of the executed agreement with the commission a date was set for hearing “on adequacy of compromise and release and attorney fees.” At this hearing, on January 20, 1947, respondent carrier again sought to have its liability terminated, and through its agent stated that it desired to withdraw from the compromise. The matter was continued to April 3, 1947, at which time the carrier raised the issue that the agreement was not properly executed. The issues before the referee at this hearing were stated to be as follows:

“1. Adequacy of Compromise and Release.

“2. Amount of Attorney’s fee.

“3. Extent of disability.

“4. Whether the defendant has the right to withdraw from the Compromise and Release filed November 19, 1946.

“5. Whether the execution of the instrument, the Compromise and Release, is insufficient, in that it was not executed in accordance with the Statute.

“6. Estoppel of the defendant to raise above issue since the Compromise and Release was prepared by them and filed by them.”