Ramsey v. Workmen's Compensation Appeals Board

Opinion

TAMURA, J. Petitioner seeks review and annulment of a Workmen’s Compensation Appeals Board (Board) decision holding that the penalty provided by section 5814 of the Labor Code may not be applied to an award of further medical care and treatment. The decision is challenged on two grounds: (1) the Board lacked jurisdiction to render the decision, and (2) the decision was erroneous on its merits.

This is the second time this case comes before us on a penalty issue. On the prior occasion (Ramsey v. Workmen's Comp. App. Bd., 2 Cal.App.3d 693, 697 [83 Cal.Rptr. 51]), the sole issue was whether the penalty assessed under section 5814 of the Labor Code should have been applied to temporary disability benefits previously awarded as well as to the permanent award made under a supplemental decision. The Board had imposed the penalty on the permanent award. In view of the Board’s finding that respondent carrier had unjustifiably terminated payment of the temporary indemnity and unreasonably delayed payment of permanent benefits, we held that the Board should have imposed the penalty on the temporary disability indemnity and other benefits previously [158]awarded as well as on the permanent award. We annulled the Board’s decision and remanded the matter with directions to take further proceedings with respect to the imposition of penalties in accordance with our opinion.

Following the remittitur in Ramsey v. Workmen’s Comp. App. Bd., supra, 2 Cal.App.3d 693, the Board on March 25, 1970, reissued its decision and award. It awarded petitioner permanent disability benefits, including lifetime medical care and treatment, and ordered that “the compensation payable herein ... be increased by ten percent.” Further, in compliance with this court’s decision, the Board ordered that petitioner be awarded a 10 percent penalty on the temporary disability indemnity and other benefits previously awarded.

Petitioner sought reconsideration of the March 25, 1970, decision and award on several grounds, including a claim that the Board, in assessing the penalty on the temporary benefits previously awarded, failed to apply it to medical benefits furnished pursuant to the award. Respondents (employer and its carrier) opposed reconsideration urging that the penalty provided by section 5814 of the Labor Code should not be applied to an award of further medical care. On May 4, 1970, the Board denied petitioner’s application for reconsideration. With respect to petitioner’s claim that the Board failed to apply the penalty to the cost of further medical treatment, the Board pointed out, quite correctly, that inasmuch as “compensation” includes cost of medical care, the imposition of the penalty on “all compensation” necessarily applied the penalty to the award of further medical care.