Honeywell v. Workers' Compensation Appeals Board

105 P.3d 544, 24 Cal. Rptr. 3d 179, 35 Cal. 4th 24, 2005 Cal. Daily Op. Serv. 1232, 70 Cal. Comp. Cases 97, 2005 Cal. LEXIS 1604
CourtCalifornia Supreme Court
DecidedFebruary 10, 2005
DocketS113201
StatusPublished
Cited by48 cases

This text of 105 P.3d 544 (Honeywell v. Workers' Compensation Appeals Board) 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
Honeywell v. Workers' Compensation Appeals Board, 105 P.3d 544, 24 Cal. Rptr. 3d 179, 35 Cal. 4th 24, 2005 Cal. Daily Op. Serv. 1232, 70 Cal. Comp. Cases 97, 2005 Cal. LEXIS 1604 (Cal. 2005).

Opinion

Opinion

WERDEGAR, J.

Labor Code section 5402 1 establishes a presumption that an injury is compensable under the workers’ compensation system if the employer does not deny liability for a worker’s claim “within 90 days after the date the claim form is filed.” (Id., subd. (b).) Departing from this clear and unambiguous language, the Workers’ Compensation Appeals Board (WCAB) ruled the 90-day period is also triggered when the employer knows or should know of an industrial injury or claim and breaches its duty (§ 5401) to provide the claim form.

Like the Court of Appeal, we conclude the WCAB erred in this regard. The employer’s knowledge of an injury satisfies the worker’s duty to provide notice within 30 days of the injury (§§ 5400, 5402, subd. (a)) and triggers the employer’s duty to provide a claim form within one working day (§ 5401, subd. (a)). But absent circumstances creating an equitable estoppel, the 90-day period for the employer to deny liability mns only from the date the worker files a claim form with the employer. (§ 5402, subd. (b).) Neither the WCAB nor this court can alter the clear statutory command.

FACTUAL AND PROCEDURAL BACKGROUND

Our summary of the facts and procedure is drawn primarily from the Court of Appeal’s opinion, which the parties agree accurately states the case background.

William Wagner, a sheet metal specialist for Honeywell (formerly Allied Signal Aerospace Company) for over 16 years, claims work-related injuries to his body and psyche due to employment from January 1, 1995, through October 16, 1998.

Wagner’s company medical record contains a July 20, 1998, entry reflecting Wagner’s statements that management was prejudiced against him and *30 hampered his promotion and transfer, that he “can’t take it anymore,” and that his doctor had prescribed him medications for work stress.

On October 16, 1998, Wagner’s wife, Linda Wagner, left a message with Honeywell’s disability coordinator, Nyssa Hawkins, that Wagner had been admitted to a psychiatric facility with a nervous breakdown and that his work supervisor and others had pushed her husband over the edge with their “head games.” Linda Wagner also asked for disability forms. On October 20, 1998, Hawkins confirmed receipt of a doctor’s note verifying disability and told Linda Wagner disability forms would be sent. The hospitalization records indicate Wagner was depressed and suicidal; they mention stress and aspects of his family and personal history, as well as identifying “work problems” as a subject for “continued work in aftercare.”

On January 11, 1999, in response to Wagner’s January 10 submission of a medical leave request form on which a box was checked that the injury was work related, Linda Wood, who handled workers’ compensation for Honeywell, wrote Wagner that she had received the information from the medical department and was enclosing a claim form and a pamphlet explaining workers’ compensation.

On January 15, 1999, Wagner served a completed claim form on Honeywell. Honeywell denied the claim by letter of March 31, 1999.

In support of his injury claim, Wagner obtained a medical report from his treating psychiatrist, Thomas Curtis. Dr. Curtis diagnosed major depression with anxiety and panic attacks that were industrially caused. Honeywell obtained a rebuttal medical opinion from psychologist Mory Framer, who concluded Wagner’s psychiatric condition was caused by nonindustrial factors or by good faith personnel actions. 2

The matter was first submitted to the workers’ compensation judge (WCJ) without testimony, for determination whether the injury should be presumed compensable under section 5402. The WCJ found that Honeywell had sufficient information to require provision of the claim form, at the latest, on October 16, 1998, following the contact with Linda Wagner. The 90-day period under section 5402 had therefore ended on January 15, 1999, the WCJ found, and the psychiatric injury was presumed compensable unless rebutted by evidence not available by that date.

*31 The WCAB granted Honeywell’s petition for reconsideration and issued an en banc decision. It held that section 5402’s 90-day period begins either when the employee files a claim form or when an employer is “reasonably certain” of an industrial injury or claim and breaches the duty to provide the claim form. The WCAB rescinded the WCJ’s decision and remanded the matter for application of the “reasonably certain” standard, which it stated is satisfied when the employer “has been made aware of facts which would lead a reasonable person to conclude with some certainty that an industrial injury . . . has occurred or is being asserted.” (Wagner v. Allied Signal Aerospace (2001) 66 Cal.Comp.Cases 483, 488-489.)

On remand, Nyssa Hawkins, the Honeywell disability coordinator, testified she was reasonably certain that Linda Wagner was reporting a work injury in October 1998. Hawkins reported the facts she had learned from Linda Wagner, but not her own conclusion, to Linda Wood within a few days. Wood said she would take care of the matter. In her own testimony, Wood stated that she knew William Wagner had been hospitalized in October of 1998 and heard (either then or earlier) from the medical department that he was out “on stress,” possibly because of work events, but that Wagner did not himself report any industrial injury to her. Wood did not recall Hawkins reporting in October 1998 that Wagner had received an injury, though she acknowledged that was Hawkins’s normal practice.

The WCJ again found that the 90-day period under section 5402 had expired on January 15, 1999, and Honeywell’s failure to deny liability before that date rendered the psychiatric injury presumptively compensable. A claim form should have been provided no later than October 16, 1998, when Hawkins received information that made her reasonably certain of the industrial injury, information she also reported to Wood. At this point, Honeywell “reasonably should have known” an emotional injury arising from events at work was being claimed.

The WCAB adopted the WCJ’s findings and denied reconsideration. The WCAB concluded that the legislative policy of encouraging prompt investigation and processing of claims was facilitated by applying the presumption of compensability where the employer is reasonably certain that an injury has occurred and fails to timely provide a claim form.

The Court of Appeal granted Honeywell’s petition for writ of review and annulled the WCAB decision. The appellate court held the WCAB’s adoption of a reasonable certainty trigger for running of the 90-day period was contrary to the statutory language, under which the period runs only from the filing of a claim form. Egregious conduct by the employer designed to frustrate the employee’s pursuit of compensation could estop the employer *32 from denying the 90-day period had commenced, but a merely negligent failure to provide the employee a claim form, in the court’s view, could not start the period running and create a presumption of compensability.

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Bluebook (online)
105 P.3d 544, 24 Cal. Rptr. 3d 179, 35 Cal. 4th 24, 2005 Cal. Daily Op. Serv. 1232, 70 Cal. Comp. Cases 97, 2005 Cal. LEXIS 1604, Counsel Stack Legal Research, https://law.counselstack.com/opinion/honeywell-v-workers-compensation-appeals-board-cal-2005.