Martin v. Workers' Compensation Appeals Board

59 Cal. App. 4th 333, 69 Cal. Rptr. 2d 138, 97 Daily Journal DAR 14171, 97 Cal. Daily Op. Serv. 8779, 62 Cal. Comp. Cases 1500, 1997 Cal. App. LEXIS 945
CourtCalifornia Court of Appeal
DecidedNovember 19, 1997
DocketB108201
StatusPublished
Cited by3 cases

This text of 59 Cal. App. 4th 333 (Martin 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
Martin v. Workers' Compensation Appeals Board, 59 Cal. App. 4th 333, 69 Cal. Rptr. 2d 138, 97 Daily Journal DAR 14171, 97 Cal. Daily Op. Serv. 8779, 62 Cal. Comp. Cases 1500, 1997 Cal. App. LEXIS 945 (Cal. Ct. App. 1997).

Opinion

Opinion

WOODS, J.

This court granted this petition to review a decision of respondent Workers’ Compensation Appeals Board (WCAB) issued after *336 this court’s prior “order and alternative writ of mandate.” The WCAB found that employee statements elicited during the investigation of petitioner Gregory Martin’s workers’ compensation claims were protected from discovery by the attorney-client privilege. We annul and remand.

Factual and Procedural Synopsis

Martin filed workers’ compensation claims alleging continuous trauma to his psyche, multiple sclerosis and other orthopedic parts of his body as a result of stress and strain while employed at real party in interest Hughes Aircraft Company (Hughes).

On July 12, 1993, real party in interest Helmsman Management Services (Helmsman), Hughes’s claims administrator, denied Martin’s claims based on the medical report of Dr. Theodore Blatt and an investigation at Hughes requested by its counsél and performed by an outside agency, Zwein-Hines Adjusters. 1

On September 20, 1994, Martin requested that Hughes provide a copy of the investigation referred to in the denial letter. Hughes responded by alleging that the requested information did not have to be produced as it was protected by the attorney-client and work product privileges.

On October 11, Martin requested the factual and legal basis for the privileges claimed, citing a WCAB panel decision, Moreno v. City of Los Angeles (1992) VNO 237156, 21 Cal. Workers’ Comp. Rptr. 108, as authority for the proposition that investigation was not protected. Hughes cited case law for the proposition the report was privileged.

On October 20, Martin requested that Hughes respond to certain preliminary questions.

On October 26, Hughes argued that the Moreno decision dealt with work product and not the attorney-client privilege and refused to answer the preliminary questions.

On November 2,1995, the compensation issues were set for trial before a workers’ compensation judge (WCJ). Martin requested that the WCJ issue an order to compel production of all documents referenced in the July 1993 denial letter.

Due to another matter that had priority, the matter was continued for trial on March 15, 1996. A special conference regarding the discovery issue was *337 held in the WCJ’s chambers on November 13, 1995. No court reporter was present. According to real parties in interest, the WCJ stated he did not have time to schedule an evidentiary hearing as to whether the witness statements were privileged, the parties essentially argued the law on the issue, and the WCJ found Moreno to be persuasive.

On November 14, Martin requested the WCJ to execute an order to produce the reports at issue.

On November 29, Hughes answered the preliminary questions and cited numerous cases for the proposition the reports were protected.

On December 7, the WCJ issued an order re discovery providing that Hughes was to disclose only those statements of individuals who would be called as witnesses at the hearing. After Martin objected to the order (citing Moreno and another WCAB decision), the WCJ issued another order indicating that all statements were to be disclosed whether or not the employees would be called as witnesses at the hearing.

On January 4, 1996, Hughes filed a petition for removal to the WCAB. The WCJ issued his report and recommendation on the petition for removal, and the WCAB denied the petition, but did not discuss the merits of Hughes’s arguments, stating only that good cause for removal had not been demonstrated.

On March 28, Hughes filed a petition for writ of prohibition in this court essentially arguing the attorney-client privilege was inviolate and the WCAB should have discussed the privilege issue on the merits. Three accompanying declarations stated that the investigation and statements of potential witnesses had been requested by defense counsel through the claims administrator directly to the employer. The intent of the investigation was to obtain information that would allow for the evaluation of claims in anticipation of and preparation for litigation. The statements were held in confidence and transmitted by the outside investigator only to the employer, the third party administrator and defense counsel. The results were not submitted to any third person, including the physicians who examined Martin.

In Martin’s answer, among other things, he argued Hughes had erroneously raised new arguments and submitted new posthearing evidence (i.e., the three declarations) in the petition. In response, Hughes argued there had been no opportunity to present evidence at the chambers conference and that the declarants had previously been identified and were known to Martin.

On June 13, this court issued an order and alternative writ of mandate, ordering the WCAB to vacate its order denying the petition for removal and *338 to make a new and different order and determine whether the witness statements were protected from discovery by the attorney-client privilege under D. I. Chadbourne, Inc. v. Superior Court (1964) 60 Cal.2d 723 [36 Cal.Rptr. 468, 388 P.2d 700] or, in the alternative, to show cause why a preemptory writ of mandate requiring that disposition should not issue.

On August 20, the WCAB issued its opinion and order, rescinding the order denying removal, granting removal and decision after removal. The WCAB concluded that on the present record, the requested information appeared to be subject to the attorney-client privilege as the employer was involved in the procurement and confidential transmission of the employee witness statements and that the intent was that those statements be held in confidence for the sole use of counsel and there would be no disclosure to any third person. The WCAB stated that as the declarations had not been submitted before, due process required that Martin have the opportunity to cross-examine the declarants and/or present rebuttal evidence, but if he failed to do so, it would find the statements were privileged. The WCAB returned the matter to the WCJ.

On September 11, Martin filed a petition for reconsideration by the WCAB, arguing that the WCAB’s order was in error as the board had considered posthearing declarations and that the witness statements were not protected.

On November 6, this court discharged the alternate writ and dismissed the writ of mandate.

On November 12, the WCAB issued its opinion and order denying reconsideration, explaining that even though Martin had raised the same due process arguments about the declarations in court, this court had directed it to consider the merits of the privilege claim and that it had allowed him the opportunity to cross-examine the declarants.

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59 Cal. App. 4th 333, 69 Cal. Rptr. 2d 138, 97 Daily Journal DAR 14171, 97 Cal. Daily Op. Serv. 8779, 62 Cal. Comp. Cases 1500, 1997 Cal. App. LEXIS 945, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martin-v-workers-compensation-appeals-board-calctapp-1997.