Kaiser Foundation Hospitals v. Workers' Compensation Appeals Board

Opinion

COBEY, Acting P. J. Petitioners Kaiser Foundation Hospitals and Southern California Permanente Medical Group (Kaiser) contend: (1) the respondent Workers’ Compensation Appeals Board (WCAB) does not have the power under the doctrine of equitable apportionment to charge part of the injured worker’s attorneys fee against Kaiser’s lien filed pursuant to Labor Code sections 4600 and 4903 for medical services provided to such injured worker; (2) if the WCAB has such power it may not be exercised where there is no question of the industrial relationship of the injury; and (3) the manner in which the WCAB apportioned the attorneys fee is in error.

We agree only with Kaiser’s third contention.

I

Respondent David Fuchs sustained injury to his heart arising out of and occurring in the course of his employment during the period April 13, 1955, to January 25, 1974, for respondent County of Los Angeles (County). County was insured for workers’ compensation by respondent State Compensation Insurance Fund (State Fund) through June 30, 1969, and County was thereafter legally uninsured.

The industrial relationship of Fuchs’ heart condition was initially denied by County and State Fund. Eventually, however, County and State Fund accepted the case on an industrial basis and provided Fuchs with workers’ compensation benefits.

Kaiser provided medical services to Fuchs for his heart condition and filed a lien in the amount of $5,742.50 in the workers’ compensation proceedings.

At the hearing before the workers’ compensation judge on October 21, 1976, stipulations were made and issues framed by Fuchs, County and [504]State Fund. Kaiser did not appear at this hearing. At that hearing it was stipulated that all medical treatment had been furnished to Fuchs by either County or State Fund with the exception of the medical treatment obtained by Fuchs from Kaiser. In issue was County’s and State Fund’s liability for Fuchs’ self-procured medical treatment and Kaiser’s lien therefor.1

After subsequent hearings, a findings and award issued on March 14, 1977. Out of Fuchs’ permanent disability award Fuchs’ attorneys were awarded a fee of $4,000. As to Kaiser’s lien, it was ordered paid in the full amount of $5,742.50 less the sum of $500 awarded to Fuchs’ attorneys as a separate fee.