ADJ20307046 · April 1, 2025

The petition was dismissed as premature because the Appeals Board had not yet acted within the 60-day period after transmission of the case to the Appeals Board, and the matter was returned to the WCJ for further proceedings to consider setting aside the OACR.

From the decision · page 6Accordingly, we dismiss the Petition as premature and return the matter to the WCJ for further proceedings consistent with this opinion. Upon return of this matter to the trial level, the WCJ may treat the Petition as a petition to set aside the OACR and conduct further proceedings and create a record. The WCJ may also consider the issue of whether medical-legal reporting is necessary in order to have an adequate record.

The case was transmitted to the Appeals Board on January 30, 2025, starting the 60-day period for the Appeals Board to act on the petition for reconsideration.

Favours Defendant prevailed

The Appeals Board must act within 60 days of transmission; the petition was dismissed as premature because this period had not expired.

From the decision · page 2Here, according to Events, the case was transmitted to the Appeals Board on January 30, 2025, and 60 days from the date of transmission is Monday, March 31, 2025. However, Monday,

Labor Code section 5909

A petition for reconsideration is deemed denied unless acted upon within 60 days from the date a trial judge transmits a case to the appeals board.

The Appeals Board must act on a petition for reconsideration within 60 days of transmission of the case to the Appeals Board.

From the decision · page 2Former 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:

Labor Code section 5803

The appeals board has continuing jurisdiction over all its orders, decisions, and awards and may rescind, alter, or amend any order, decision, or award for good cause.

The Appeals Board may rescind, alter, or amend any order, decision, or award for good cause after notice and opportunity to be heard.

From the decision · page 3II. "The appeals board has continuing jurisdiction over all its orders, decisions, and awards made and entered under the provisions of [Division 4]... At any time, upon notice and after the opportunity to be heard is given to the parties in interest, the appeals board may rescind, alter, or amend any order. decision, or award, good cause appearing therefor." (Lab. Code, § 5803.) We observe that contract principles apply to settlements of workers' compensation disputes. The legal principles governing compromise and release agreements are the same as those governing other contracts. (Burbank Studios v. Workers' Co. Appeals Bd. (Yount) (1982) 134 Cal.App.3d 929, 935 [47 Cal.Comp.Cases 832].) For a compromise and release agreement to be effective, the necessary elements of a contract must exist, including an offer of settlement of a disputed claim by one of the parties and an acceptance by the other. (Id.)

Labor Code section 5702

Stipulations are binding on the parties unless good cause is shown to withdraw from agreements.

The WCJ and WCAB are not bound by stipulations and may inquire into the adequacy of compromise and release agreements.

From the decision · page 4Stipulations are binding on the parties unless, on a showing of good cause, the parties are given permission to withdraw from their agreements. (Weatherall, supra, at 1121.) To determine whether there is good cause to rescind awards and stipulations, the circumstances surrounding their execution and approval must be assessed. (See Labor Code § 5702; Weatherall, supra, 1118-1121; Robinson, supra, at 790-792; Huston v. Workers' Comp. Appeals Bd. (1979) 95 Cal.App.3d 856, 864-867 [44 Cal.Comp.Cases 798].) Although not an exhaustive list, "good cause" generally 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];

Labor Code section 5001

No release of liability or compromise agreement is valid unless approved by the Appeals Board or WCJ.

Compromise and release agreements require approval by the WCJ or Appeals Board to be valid.

From the decision · page 5We note that while stipulations are encouraged in workers' compensation cases, they are not binding on the WCJ or the WCAB. (Lab. Code, § 5702; Robinson, supra, at 790; Turner Gas Co. v. Workmen's Comp. Appeals Bd. (Kinney) (1975) 47 Cal.App.3d 286, 290-291 [40 Cal.Comp.Cases 253].) Section 5001 provides that no release of liability or compromise agreement is valid unless it is approved by the Appeals Board or WCJ. (Lab. Code, § 5001; Johnson, supra, at 973.)

California Code of Regulations title 8 section 10700(b)

The WCAB shall inquire into the adequacy of all Compromise and Release agreements and may set the matter for hearing to take evidence when necessary.

The WCJ may make further inquiry to determine the matter in controversy and ensure the settlement is adequate.

From the decision · page 5"The 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).) The WCJ may make further inquiry into the matter "to enable it to determine the matter in controversy." (Lab. Code, § 5702; see also Weatherall, supra, at 1119; Kinney, supra.)