ADJ19408921 — California WCAB decision

What the panel ordered

Petition for reconsideration dismissed as premature; matter returned to trial level for hearing and record development.

Petition for reconsideration filed by defendant seeking to set aside the Order Approving Compromise & Release (OACR) issued by WCJ on February 25, 2025.

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What was disputed, and how it came out

Each issue the panel decided, with the reasoning it gave. An outcome is what this panel did on this record — not a rule, and not a prediction.

Reconsideration / removalDefendant prevailed

The petition was dismissed as premature because the WCJ did not have an opportunity to create a complete record or consider Medicare eligibility at settlement, and the parties were not given an opportunity to be heard.

From the decision · page 5Accordingly, we will dismiss the Petition as premature, and return this matter to the trial level. Upon return of this matter to the trial level, we recommend that the WCJ consider defendant's motion to set aside and set a hearing so the parties can provide evidence regarding the necessity of considering Medicare's interests and any other relevant issues and create a record upon which a decision can be made by the WCJ. After the WCJ issues a decision, either party may then timely seek reconsideration of that decision.

The facts that decided it

The rules the panel named

Authorities as the decision cited them, with how this panel applied each one.

Labor Code section 5909

Petition for reconsideration is deemed denied unless acted upon within 60 days from transmission of case to Appeals Board (Labor Code section 5909).

The Appeals Board must act on petition within 60 days of transmission; parties must be notified of transmission date.

From the decision · page 2Former Labor Code section 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, Labor Code section 5909 was amended to state in relevant part that:

Labor Code sections 5803, 5804

Appeals Board has continuing jurisdiction to rescind, alter, or amend any order within five years of injury date for good cause (Labor Code sections 5803, 5804).

Order Approving Compromise and Release may be reopened for good cause including mutual mistake, duress, fraud, undue influence, procedural irregularities.

From the decision · page 4The 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 alleged and shown. (Lab. Code, § 5803, 5804.)2 An order approving compromise and release is an order that may be reopened for "good cause" under section 5803. Whether "good cause" exists to set aside a settlement depends upon the facts and circumstances of each case. "Good cause" includes mutual mistake of fact, duress, fraud, undue influence, and procedural irregularities. (Johnson v. Workmen's Comp. Appeals Bd. (1970) 2 Cal.3d 964, 975 [35 Cal.Comp.Cases 362]; Santa Maria Bonita School District v. Workers' Comp. Appeals Bd. (Recinos) (2002) 67 Cal.Comp.Cases 848, 850 (writ den.); City of Beverly Hills v. Workers' Comp. Appeals Bd. (Dowdle) (1997) 62 Cal.Comp.Cases 1691, 1692 (writ den.); Smith v. Workers' Comp. Appeals Bd. (1985) 168 Cal.App.3d 1160, 1170 [50 Cal.Comp.Cases 311].) Although defendant filed the petition as one for reconsideration, we treat it as a petition to set aside the OACR. (Sarabi v. Workers' Comp. Appeals Bd. (2007) 151 Cal.App.4th 920, 925 [72 Cal.Comp.Cases 778]; Rubio v. Workers' Comp. Appeals Bd. (Rubio) (1985) 165 Cal.App.3d 196, 200-201 [50 Cal.Comp.Cases 160].)

ADJ19408921 · June 16, 2025

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