Garcia v. Industrial Accident Commission

263 P.2d 8, 41 Cal. 2d 689, 1953 Cal. LEXIS 319
CourtCalifornia Supreme Court
DecidedNovember 13, 1953
DocketL. A. 22835
StatusPublished
Cited by37 cases

This text of 263 P.2d 8 (Garcia v. Industrial Accident Commission) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Garcia v. Industrial Accident Commission, 263 P.2d 8, 41 Cal. 2d 689, 1953 Cal. LEXIS 319 (Cal. 1953).

Opinions

[691]*691SCHAUER, J.

Everardo Garcia, an applicant for workmen’s compensation, and Pacific Indemnity Company, carrier of the workmen’s compensation insurance of Garcia’s employer, seek review of an Industrial Accident Commission award of a lien (allowed pursuant to Lab. Code, § 4903, par. (f)) against $1,250 payable to Garcia under an agreement between him and Pacific compromising his claim for workmen’s compensation. The lien claimant is the Department of Employment of the State of California. It paid the employe unemployment compensation disability benefits during a period when, although it is not disputed that he was entitled to compensation from one source or the other, it was uncertain whether the benefits should be paid, on the one hand, under the Unemployment Insurance Act, or, on the other hand, under the Workmen’s Compensation Act. The subsequent compromise of the employe’s claim for workmen’s compensation was approved by the commission. There was no direct evidence before the commission as to whether the injury on account of which the employe claimed workmen’s compensation was industrially caused and as to whether, if it was, it caused the disability during the period for which unemployment compensation disability benefits were paid. The employe and the workmen’s compensation insurance carrier of the employer take the position that there was no evidence before the commission sufficient to support a finding on those matters, and that the Department of Employment, to establish its lien, must prove such matters. The commission and the department take the position that the employe and the insurance carrier, if they object to allowance of the lien, must show that it should be disallowed. We have concluded that the position of the commission and the department is correct.

On August 3, 1950, the employe filed with the commission his application for adjustment of claim for an allegedly industrial injury which was sustained March 17, 1950. Also on August 3d the Department of Employment filed its request for allowance of lien on which was endorsed the employe’s consent to such allowance. The department paid the employe unemployment compensation totaling $496 during the period from June 27 through October 16, 1950.

Hearings on the claim before the commission were continued from time to time because the employe and the employer’s insurance carrier were negotiating for a settlement. In March, 1952, the employe and the insurance carrier ex[692]*692ecuted a settlement agreement which recited that there was a dispute as to liability and compromised the employe’s claims against the compensation insurance carrier for the sum of $1,250. The commission approved this settlement by an order which made no mention of the department’s lien claim.

At the department’s request the matter was reopened for consideration of the lien claim in the light of this court’s decision in Aetna Life Ins. Co. v. Industrial Acc. Com. (1952), 38 Cal.2d 599 [244 P.2d 530], which decision became final after the commission had approved the settlement. At the hearing concerning the lien all the parties declined to introduce evidence on the question whether, during the period when the department paid the unemployment disability benefits, the employe was disabled by an industrial injury. The referee found that “there is no evidence to establish that applicant [employe] has sustained any injury which arose out of and occurred in the course of his employment or that he suffered any period of disability as result of any such injury, nor is there any evidence that will establish that he is entitled to any compensation by reason of any such period of disability.” However, it is not disputed that, as above recited, the claim for workmen’s compensation was filed, such claim was compromised, and the compromise was approved by the commission. Upon the record the referee recommended and the commission ordered that the lien be granted. The employe and the employer’s insurance carrier exhausted their remedies before the commission, and this review proceeding followed.

In Bryant v. Industrial Acc. Com. (1951), 37 Cal.2d 215, 218 [231 P.2d 32], we emphasized that the legislative purpose in providing unemployment disability benefits for periods and under circumstances not covered by workmen’s compensation obviously was not to create duplicating compensations but, rather (in the language of the report of the Senate Interim Committee on Unemployment Insurance, Senate Journal, May 7, 1945, p. 126), was to provide an insurance program “to pay benefits to individuals who are unemployed because of illness or injury for which no compensation is otherwise made.” (Italics added.) The legislative intention that a workman shall be compensated in part for the wage loss resulting from unemployment due to sickness or injury both where the disability is industrially caused (covered by the Workmen’s Compensation Act) and where it is not so caused (covered by the Unemployment Insurance Act), but that he shall not be entitled to unem[693]*693ployment compensation disability benefits in addition to workmen’s compensation for the same period of unemployment, is manifest in the substance of the respective statutes. (See, e.g., Workmen’s Compensation Act, Lab. Code, §§ 3202, 3208, 4903, par. (f), §§ 5000-5003, 5100; Unemployment Insurance Act, 3 Deering’s Gen. Laws, Act 8780d, §§ 150, 207.) In the Bryant case we further held that, to make the legislative intention effective, the Industrial Accident Commission, pursuant to paragraph (f) of section 4903 of the Labor Code, must allow a lien against workmen’s compensation for unemployment compensation disability benefits paid under the Unemployment Insurance Act during a period when, pending a determination by the Industrial Accident Commission of a claim for workmen’s compensation, there was uncertainty whether benefits were payable under the Workmen’s Compensation Act or under the Unemployment Insurance Act.

Both the Workmen’s Compensation Act and the Unemployment Insurance Act are remedial statutes and are to be liberally construed for the purpose of accomplishing their objects. Obviously, a primary and common object is the prompt cash assistance of a disabled workman. To that end, the immediate payment of benefits under the Unemployment Insurance Act where there is a question whether benefits are payable under the workmen’s compensation law, is highly desirable. In the Aetna case (Aetna Life Ins. Co. v. Industrial Acc. Com. (1952), supra, 38 Cal.2d 599, 603) we recognized that the proper conduct of the business of an insurance company carrying unemployment compensation disability benefit insurance would inevitably tend to make it delay payments to the workman in doubtful cases pending determination of the question as to whether the disability was compensable under the Workmen’s Compensation Act, unless such carrier could be assured that payments advanced under such circumstances would in all proper cases be recoverable upon determination of the controlling facts. We specifically held (p. 604 of 38 Cal.2d) that an amount payable under an agreement compromising a claim for compensation entered into between the injured workman and the workmen’s compensation insurance carrier of his employer and approved by the commission was workmen’s compensation against which the lien for unemployment disability benefits should be allowed.

The final determinations whether an employe is en[694]

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Bluebook (online)
263 P.2d 8, 41 Cal. 2d 689, 1953 Cal. LEXIS 319, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garcia-v-industrial-accident-commission-cal-1953.