General Accident Insurance v. Workers' Compensation Appeals Board

47 Cal. App. 4th 1141, 55 Cal. Rptr. 2d 272, 61 Cal. Comp. Cases 648, 96 Cal. Daily Op. Serv. 5562, 96 Daily Journal DAR 9063, 1996 Cal. App. LEXIS 725
CourtCalifornia Court of Appeal
DecidedJuly 26, 1996
DocketNo. G018378
StatusPublished
Cited by6 cases

This text of 47 Cal. App. 4th 1141 (General Accident Insurance v. Workers' Compensation Appeals Board) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
General Accident Insurance v. Workers' Compensation Appeals Board, 47 Cal. App. 4th 1141, 55 Cal. Rptr. 2d 272, 61 Cal. Comp. Cases 648, 96 Cal. Daily Op. Serv. 5562, 96 Daily Journal DAR 9063, 1996 Cal. App. LEXIS 725 (Cal. Ct. App. 1996).

Opinion

[1144]*1144Opinion

RYLAARSDAM, J.

General Accident Insurance Company (General) challenges a Workers’ Compensation Appeals Board (WCAB) ruling denying its request to dismiss a claim by Fireman’s Fund Insurance Companies (Fireman’s) seeking contribution for an employee’s continuous trauma injury. We hold (1) the one-year statute of limitations contained in Labor Code section 5500.5, subdivision (e) (further statutory references are to the Labor Code, unless otherwise indicated) applies to such a claim, (2) Fireman’s did not satisfy the requirement of the statute by merely joining General as an additional party in the workers’ comepnsation action, and (3) General was not estopped from relying on the statute of limitations. We therefore conclude General is entitled to the requested relief and grant the writ.

Facts

On January 23, 1990, Patricio Loterstein, an employee of R & H Designs, Inc. (R & H), filed a workers’ compensation claim alleging he had suffered a continuous trauma injury commencing August 1, 1989. General provided workers’ compensation coverage to R & H between September 1988 and December 18, 1989; Fireman’s between December 22, 1989, and December 22, 1990. Loterstein’s claim named Fireman’s as R & H’s carrier; Fireman’s settled the matter with Loterstein and the WCAB approved the compromise and release on February 25, 1991.

One of Fireman’s employees telephoned a General employee on February 20 and discussed General’s participating in the settlement. General’s representative told Fireman’s it would have to join General in the proceedings and demand contribution. On February 25, a General employee telephoned Fireman’s and asked it to send a “contribution letter,” to request reimbursement. At Fireman’s request, the WCAB issued an order joining General as a party defendant on March 15.

Almost a year later, Fireman’s sent General a letter itemizing the medical and legal costs paid by it, and the amount of its settlement with Loterstein. The letter requested contribution. Over the next year and a half, Fireman’s sent General four additional written requests for contribution. General’s only response was to inform Fireman’s that its requests were being forwarded to its Northern California office.

Fireman’s did not file an application for adjudication of its contribution claim against General with the WCAB until January 1994. General objected, asserting Fireman’s failed to file a timely petition for contribution. After an [1145]*1145evidentiary hearing, the workers’ compensation judge found Fireman’s was entitled to proceed against General for contribution. In his findings, the judge held section 5500.5, subdivision (e) did not apply “[bjecause the . . . statute refers specifically to employer,” and this case involved two insurance carriers. The judge also noted General was joined as a party in March 1991. Thus, he concluded: “Here we have a single employer with two different carriers covering one period of asserted injurious exposure. In light of that, coupled with the fact that defendant General. . . was aware of its potential involvement in this claim, nearly from the moment of the settlement agreement, it cannot be concluded that General ... has been prejudiced in any way.”

General petitioned the WCAB to reconsider the ruling. The workers’ compensation judge recommended the request be denied, reiterating verbatim his reasons for the initial ruling. The WCAB denied General’s petition, “[b]ased on our review of the record, and for the reasons stated in [the workers’ compensation judge’s] report. . . .”

Discussion

1. Section 5500.5

This case concerns the scope of section 5500.5, which governs the procedure to be employed in cases where an employee suffers either an occupational disease or a cumulative injury. Section 5500.5 is a codification of the Supreme Court’s decision in Colonial Ins. Co. v. Industrial Acc. Com. (1946) 29 Cal.2d 79 [172 P.2d 884], (City of Torrance v. Workers' Comp. Appeals Bd. (1982) 32 Cal.3d 371, 374-375 [185 Cal.Rptr. 645, 659 P.2d 1162]; Flesher v. Workers' Comp. Appeals Bd. (1979) 23 Cal.3d 322, 327 [152 Cal.Rptr. 459, 590 P.2d 35].) There, an employee who contracted silicosis in the course of his employment, sought to recover against the carrier covering the employer when the disease manifested itself. The conditions causing the disease existed throughout his employment and the employer was covered by 11 different carriers during that time. The Supreme Court held that, in cases involving “progressive occupational diseases,” an “employee may . . . obtain an award for the entire disability against any one or more of successive employers or successive insurance carriers if the disease and disability were contributed to by the employment furnished by the employer chosen or during the period covered by the insurance even though the particular employment is not the sole cause of the disability.” (Colonial Ins. Co. v. Industrial Acc. Com., supra, 29 Cal.2d at p. 82.) Thereafter, “[t]he successive carriers or employers should properly have the burden of adjusting the share [1146]*1146that each should bear and that should be done by them in an independent proceeding between themselves.” (Ibid.)

Under section 5500.5, an employee suffering from an occupational disease or cumulative injury resulting from employment by more than one employer “may elect to proceed against any one or more of the employers.” (§ 5500.5, subd. (c).) The other employers may be joined during the pendency of the proceeding, but their “liability . . . shall not be determined until supplemental proceedings are instituted.” (§ 5500.5, subds. (b) & (c); see also Flesher v. Workers' Comp. Appeals Bd., supra, 23 Cal.3d at pp. 325-326.)

The supplemental proceeding to determine contribution and apportionment is governed by section 5500.5, subdivision (e) which provides: “At any time within one year after the appeals board has made an award for compensation benefits in connection with an occupational disease or cumulative injury, any employer held liable under the award may institute proceedings before the appeals board for the purpose of determining an apportionment of liability or right of contribution. The proceeding shall not diminish, restrict, or alter in any way the recovery previously allowed the employee . . . , but shall be limited to a determination of the respective contribution rights, interest or liabilities of all the employers joined in the proceeding, either initially or supplementally. . . .”

2. Section 5500.5’s Application to Multiple Insurers of a Single Employer

The WCAB concluded section 5500.5, subdivision (e) was inapplicable because it expressly refers only to an “employer,” while this case concerned contribution between two carriers for the same employer. A review of the overall statutory scheme in workers’ compensation matters and section 5500.5’s construction by the courts shows that such a literal interpretation of the statute is erroneous.

“ ‘The fundamental rule of statutory construction is that the court should ascertain the intent of the Legislature so as to effectuate the purpose of the law.

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47 Cal. App. 4th 1141, 55 Cal. Rptr. 2d 272, 61 Cal. Comp. Cases 648, 96 Cal. Daily Op. Serv. 5562, 96 Daily Journal DAR 9063, 1996 Cal. App. LEXIS 725, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-accident-insurance-v-workers-compensation-appeals-board-calctapp-1996.