Lockheed Martin Corp. v. Workers' Compensation Appeals Board

117 Cal. Rptr. 2d 865, 96 Cal. App. 4th 1237, 2002 Cal. Daily Op. Serv. 2530, 2002 Daily Journal DAR 3059, 67 Cal. Comp. Cases 245, 2002 Cal. App. LEXIS 3004
CourtCalifornia Court of Appeal
DecidedMarch 19, 2002
DocketA093061
StatusPublished
Cited by16 cases

This text of 117 Cal. Rptr. 2d 865 (Lockheed Martin Corp. 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
Lockheed Martin Corp. v. Workers' Compensation Appeals Board, 117 Cal. Rptr. 2d 865, 96 Cal. App. 4th 1237, 2002 Cal. Daily Op. Serv. 2530, 2002 Daily Journal DAR 3059, 67 Cal. Comp. Cases 245, 2002 Cal. App. LEXIS 3004 (Cal. Ct. App. 2002).

Opinion

Opinion

REARDON, J.

Introduction

In this case we hold that the compensability threshold established by Labor Code section 3208.3, subdivision (b)(1) 1 applies to any claim for *1240 psychiatric injury, whether or not it is related to a compensable physical injury. Employer Lockheed Martin Corporation (Lockheed) and its insurer, Bankers Standard Insurance Company (Bankers), petitioned for review of a decision of the Workers’ Compensation Appeals Board (Board or WCAB) reversing the finding of a workers’ compensation administrative law judge (WCJ) that employee applicant Virginia McCullough suffered no compensable psychiatric injury. We granted the petition and now reverse the Board’s order in case No. WCK 32177.

Background

In 1986, while employed by General Electric (G.E.), McCullough sustained an admitted industrial injury to her left forearm and was awarded 35.5 percent permanent disability. In 1988, she filed another claim against G.E. alleging cumulative pulmonary and internal trauma (exposure to toxic chemicals), later adding an allegation of associated psychiatric injury. During the period ending April 1996, while employed by Lockheed, she sustained admitted cumulative injury to her right upper arm and neck and alleged additional psychiatric and internal injury (case No. WCK 32177).

The WCJ found: (1) McCullough had never sought to reopen her first claim, as to which she was not entitled to further temporary disability indemnity, and the evidence did not justify, on an industrial basis, medical treatment for her psychiatric condition; (2) she did not sustain injury to her pulmonary or internal organs, or to her psyche, arising out of and in the course of her G.E. employment; and (3) she did sustain injury to her right upper arm and neck at Lockheed (for which she was awarded 27.75 percent permanent disability and future medical treatment), but not to her psyche or internal organs. In particular, the WCJ found McCullough’s aggravated psychological state did not satisfy the threshold of compensability established by section 3208.3, subdivision (b)(1), 2 which he ruled applicable to all psychiatric injuries, even those incurred as a consequence of a physical work injury.

McCullough petitioned for reconsideration, challenging, inter alia, the WCJ’s interpretation of section 3208.3, which she asserted does not apply to *1241 a psychiatric injury that is a compensable consequence of an orthopedic injury. In his report and recommendation on her petition, the WCJ discounted the precedential value of the Board panel decision on which McCullough relied, Rebelo v. Washington Hospital (1999) SJ 195868, 27 Cal. Workers’ Comp. Rptr. 159 (Rebelo).

The Board granted reconsideration and reversed the WCJ’s order with respect to the claims based on McCullough’s 1986 and 1996 injuries, finding in each case that under Rebelo, she did sustain psychiatric injury as a compensable consequence of the admitted industrial physical injury. Accordingly, the Board awarded her further psychiatric care in both cases, and increased her permanent disability award to 34 percent in the latter. As to the alleged 1988 injury, reconsideration was denied. Lockheed and Bankers (hereafter collectively Lockheed) filed a timely petition for writ of review; G.E. did not.

Discussion

A. Statutory Construction

“Although the WCAB’s findings on questions of fact are conclusive [citation], the construction of a statute and its applicability to a given situation are matters of law that are reviewable by the courts.” (Rex Club v. Workers’ Comp. Appeals Bd. (1997) 53 Cal.App.4th 1465, 1470-1471 [62 Cal.Rptr.2d 393].) “The Board’s administrative construction of statutes that it is charged to enforce and interpret is entitled to great weight unless it is clearly erroneous. [Citation.]” (Ralphs Grocery Co. v. Workers’ Comp. Appeals Bd. (1995) 38 Cal.App.4th 820, 828 [45 Cal.Rptr.2d 197].) “An erroneous interpretation or application of law by the WCAB is a ground for annulment of [its] decision. [Citations.]” (Rex Club, supra, 53 Cal.App.4th at p. 1471.)

“The fundamental goal of statutory interpretation is to “ascertain the intent of the lawmakers so as to effectuate the purpose of the law.” ’ [Citations.]” (Juran v. Epstein (1994) 23 Cal.App.4th 882, 893 [28 Cal.Rptr.2d 588].) In determining legislative intent, courts must look first to the plain words of the statute, but statutes must also be construed in light of their historical background and evident objectives (ibid.), especially if the statutory language is ambiguous, i.e., susceptible of more than one reasonable *1242 interpretation (Granberry v. Islay Investments (1995) 9 Cal.4th 738, 744 [38 Cal.Rptr.2d 650, 889 P.2d 970]). In general, the Legislature has directed us to construe workers’ compensation laws “liberally . . . with the purpose of extending their benefits for the protection of persons injured in the course of their employment.” (§ 3202.)

B. Section 3208.3

“Labor Code section 3208.3 was enacted as part of the Margolin-Greene Workers’ Compensation Reform Act of 1989. It is part of the Legislature’s response to increased public concern about the high cost of workers’ compensation coverage, limited benefits for injured workers, suspected fraud and widespread abuses in the system, and particularly the proliferation of workers’ compensation cases with claims for psychiatric injuries.” (Hansen v. Workers’ Compensation Appeals Bd. (1993) 18 Cal.App.4th 1179, 1183-1184 [23 Cal.Rptr.2d 30] (Hansen), fn. omitted.) “The Legislature’s expressed intent in enacting Labor Code section 3208.3 was to establish a new and higher threshold of compensability for psychiatric injury.” (Id. at p. 1184, citing § 3208.3, subd. (c).) As originally enacted, therefore, subdivision (b) of the statute provided, “In order to establish that a psychiatric injury is compensable, an employee shall demonstrate by a preponderance of the evidence that actual events of employment were responsible for at least 10 percent of the total causation from all sources contributing to the psychiatric injury.” (Stats. 1989, ch. 892, § 25, p. 3003.)

In 1991, section 3208.3 was amended to add subdivision (d), which provided that no compensation shall be paid for psychiatric injury resulting from a “regular and routine employment event” (including lawful personnel actions) unless the employee has been employed by the employer for at least six months. “The Legislature’s apparent purpose in enacting subdivision (d) of section 3208.3 was to limit questionable claims for psychiatric injuries resulting from routine stress during the first six months of employment.”

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117 Cal. Rptr. 2d 865, 96 Cal. App. 4th 1237, 2002 Cal. Daily Op. Serv. 2530, 2002 Daily Journal DAR 3059, 67 Cal. Comp. Cases 245, 2002 Cal. App. LEXIS 3004, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lockheed-martin-corp-v-workers-compensation-appeals-board-calctapp-2002.