ADJ11183362 · May 22, 2026

The Petition for Reconsideration was dismissed as premature because the record was undeveloped to evaluate the applicant's contentions about inadequate representation and terms of the compromise and release. The matter was returned to the trial level for further proceedings to consider the Petition as a Petition to Set Aside the OACR with a full record.

From the decision · page 1Applicant, in pro per, seeks reconsideration of the Order Approving Compromise and Release (OACR) approved by the workers' compensation administrative law judge (WCJ) on August 20, 2025.

No evidence of an adequacy hearing held prior to approval of the Compromise and Release agreement.

Favours Applicant prevailed

This lack of hearing prevented the Board from evaluating the fairness and adequacy of the agreement, leading to dismissal of the Petition as premature and remand for further proceedings.

From the decision · page 4Here, it appears that defendant paid substantial permanent disability advances that may have exceeded the value of disability related to the accepted body parts; despite there being multiple disputed body parts, some of which are outside the expertise of the qualified medical evaluator, the C&R allotted no value to the disputed body parts or non-Medicare covered future medical care; applicant's future medical needs appear substantial given the size of the MSA; and applicant, a monolingual, Spanish speaking janitor, was left to administer the MSA alone without professional assistance. Despite such facts, there is no evidence that an adequacy hearing was held prior to approval of the C&R. (See Cal. Code Regs., tit. 8, § 10700(b); Claxton v. Waters (2004) 34 Cal.4th 367, 373 [69 Cal.Comp.Cases 895]; Sumner v. Workers' Comp. Appeals Bd. (1983) 33 Cal.3d 965, 972-973 [48 Cal.Comp.Cases 369] ["To safeguard the injured worker from entering into unfortunate or improvident releases as a result of, for instance, economic pressure or bad advice, the worker's knowledge of and intent to release particular benefits must be established separately from the standard release language of the form."].)

Applicant was a monolingual Spanish-speaking janitor left to administer the Medicare Set-Aside alone without professional assistance.

Favours Applicant prevailed

This fact raised concerns about the applicant's ability to understand and manage the settlement terms, supporting the need for further proceedings.

From the decision · page 4Here, it appears that defendant paid substantial permanent disability advances that may have exceeded the value of disability related to the accepted body parts; despite there being multiple disputed body parts, some of which are outside the expertise of the qualified medical evaluator, the C&R allotted no value to the disputed body parts or non-Medicare covered future medical care; applicant's future medical needs appear substantial given the size of the MSA; and applicant, a monolingual, Spanish speaking janitor, was left to administer the MSA alone without professional assistance. Despite such facts, there is no evidence that an adequacy hearing was held prior to approval of the C&R. (See Cal. Code Regs., tit. 8, § 10700(b); Claxton v. Waters (2004) 34 Cal.4th 367, 373 [69 Cal.Comp.Cases 895]; Sumner v. Workers' Comp. Appeals Bd. (1983) 33 Cal.3d 965, 972-973 [48 Cal.Comp.Cases 369] ["To safeguard the injured worker from entering into unfortunate or improvident releases as a result of, for instance, economic pressure or bad advice, the worker's knowledge of and intent to release particular benefits must be established separately from the standard release language of the form."].)

Labor Code section 5909

Petition for reconsideration must be acted upon within 60 days of transmission to the Appeals Board; service of the Report constitutes notice of transmission.

The Board concluded the 60-day period commenced on March 23, 2026, when the Report was served and the case transmitted.

From the decision · page 2I. Former Labor Code section1 5909 provided that a petition for reconsideration was deemed denied unless the Appeals Board acted on the petition within 60 days from the date of filing. (Lab. Code, § 5909.) Effective July 2, 2024, section 5909 was amended to state in relevant part that: (a) A petition for reconsideration is deemed to have been denied by the appeals board unless it is acted upon within 60 days from the date a trial judge transmits a case to the appeals board.

Labor Code sections 5803, 5804

The Appeals Board has continuing jurisdiction to rescind, alter, or amend any order if a petition is filed within five years of injury and good cause is shown.

The Board noted good cause includes fraud, duress, mistake, and other factors; the record must be developed to determine if good cause exists to set aside the OACR.

From the decision · page 3The Appeals Board has continuing jurisdiction to "rescind, alter, or amend any order, decision, or award," if a petition is filed within five years of the date of injury and "good cause" to reopen is shown. (Lab. Code, § 5803, 5804.) An OACR is an order that may be reopened for "good cause" under section 5803. "Good cause" includes fraud, duress, undue influence, mutual mistake of fact, mistake of law, invalidity of execution, incompetency, or minority at the time of execution of the agreement. (See Argonaut Ins. Exch. v. I.A.C. (1958) 49 Cal.2d 706 [23 Cal.Comp.Cases 34]; Smith v. Workers' Comp. Appeals Bd. (1985) 168 Cal.App.3d 1160 [50 Cal.Comp.Cases 311]; Carmichael v. I.A.C. (1965) 234 Cal.App.2d 311 [30 Cal.Comp.Cases 169]; Silva v. Industrial Acc. Com. (1924) 68 Cal. App. 510 [11 IAC 266]; City of Beverly Hills v. Workers' Comp. Appeals Bd. (1997) 62 Cal.Comp.Cases 1691 (writ den.); Bullocks, Inc. v. I.A.C. (1951) 16 Cal.Comp.Cases 253 (writ den.); Pac. Indem. Co. v. I.A.C. (1946) 11 Cal.Comp.Cases

Cal. Code Regs., tit. 8, 10700(b)

The Board must inquire into the adequacy of all Compromise and Release agreements and may hold hearings to determine approval.

The Board observed no evidence of an adequacy hearing prior to approval of the C&R, which is required to protect the injured worker.

From the decision · page 4Further, "[t]he Workers' Compensation Appeals Board shall inquire into the adequacy of all Compromise and Release agreements and Stipulations with Request for Award, and may set the matter for hearing to take evidence when necessary to determine whether the agreement should be approved or disapproved, or issue findings and awards." (Cal. Code Regs., tit. 8, § 10700(b).)

Applicant was a monolingual Spanish-speaking janitor left to administer the Medicare Set-Aside (MSA) alone without professional assistance.

From the decision · page 4Here, it appears that defendant paid substantial permanent disability advances that may have exceeded the value of disability related to the accepted body parts; despite there being multiple disputed body parts, some of which are outside the expertise of the qualified medical evaluator, the C&R allotted no value to the disputed body parts or non-Medicare covered future medical care; applicant's future medical needs appear substantial given the size of the MSA; and applicant, a monolingual, Spanish speaking janitor, was left to administer the MSA alone without professional assistance. Despite such facts, there is no evidence that an adequacy hearing was held prior to approval of the C&R. (See Cal. Code Regs., tit. 8, § 10700(b); Claxton v. Waters (2004) 34 Cal.4th 367, 373 [69 Cal.Comp.Cases 895]; Sumner v. Workers' Comp. Appeals Bd. (1983) 33 Cal.3d 965, 972-973 [48 Cal.Comp.Cases 369] ["To safeguard the injured worker from entering into unfortunate or improvident releases as a result of, for instance, economic pressure or bad advice, the worker's knowledge of and intent to release particular benefits must be established separately from the standard release language of the form."].)

No evidence that an adequacy hearing was held prior to approval of the Compromise and Release agreement.

From the decision · page 4Here, it appears that defendant paid substantial permanent disability advances that may have exceeded the value of disability related to the accepted body parts; despite there being multiple disputed body parts, some of which are outside the expertise of the qualified medical evaluator, the C&R allotted no value to the disputed body parts or non-Medicare covered future medical care; applicant's future medical needs appear substantial given the size of the MSA; and applicant, a monolingual, Spanish speaking janitor, was left to administer the MSA alone without professional assistance. Despite such facts, there is no evidence that an adequacy hearing was held prior to approval of the C&R. (See Cal. Code Regs., tit. 8, § 10700(b); Claxton v. Waters (2004) 34 Cal.4th 367, 373 [69 Cal.Comp.Cases 895]; Sumner v. Workers' Comp. Appeals Bd. (1983) 33 Cal.3d 965, 972-973 [48 Cal.Comp.Cases 369] ["To safeguard the injured worker from entering into unfortunate or improvident releases as a result of, for instance, economic pressure or bad advice, the worker's knowledge of and intent to release particular benefits must be established separately from the standard release language of the form."].)