Rhiner v. Workers' Compensation Appeals Board

848 P.2d 244, 4 Cal. 4th 1213, 18 Cal. Rptr. 2d 128, 58 Cal. Comp. Cases 172, 93 Daily Journal DAR 4486, 93 Cal. Daily Op. Serv. 2622, 1993 Cal. LEXIS 1558
CourtCalifornia Supreme Court
DecidedApril 8, 1993
DocketS022239
StatusPublished
Cited by33 cases

This text of 848 P.2d 244 (Rhiner 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
Rhiner v. Workers' Compensation Appeals Board, 848 P.2d 244, 4 Cal. 4th 1213, 18 Cal. Rptr. 2d 128, 58 Cal. Comp. Cases 172, 93 Daily Journal DAR 4486, 93 Cal. Daily Op. Serv. 2622, 1993 Cal. LEXIS 1558 (Cal. 1993).

Opinions

Opinion

KENNARD, J.

When a worker suffers an industrial injury, the employer is required by law to provide workers’ compensation benefits. This obligation to provide benefits arises shortly after the injury has been incurred. When, upon a worker’s application, the Workers’ Compensation Appeals Board (WCAB) issues an order or award, it includes benefits that the employer already has or should have paid, as well as benefits the employer is to pay in the future. (See, e.g., Lab. Code, §§ 4600, 4650; all further statutory citations are to the Labor Code.) If the employer has unreasonably delayed or refused payment of benefits, section 5814 requires that the WCAB, as a penalty for the employer’s improper conduct, increase by 10 percent “the full amount of the order, decision or award.”

The issue in this case concerns the computation of the section 5814 penalty. More specifically, it is whether payments that were made by the [1216]*1216employer before the WCAB’s award (preaward payments) and were not unreasonably delayed should be deducted before levying the 10 percent increase. We conclude, based on the unambiguous language of the statute, its legislative history, and this court’s decision in Gallamore v. Workers’ Comp. Appeals Bd. (1979) 23 Cal.3d 815 [153 Cal.Rptr. 590, 591 P.2d 1242] (Gallamore), that the penalty must be applied to the full amount of the award for the class of compensation in which the payment was unreasonably delayed or refused, without deduction of preaward payments.

Facts

On January 9, 1988, petitioner Grant David Rhiner was injured when he fell off a roof at work. Because his employer1 denied liability, petitioner filed an “Application for Adjudication of Claim.” The workers’ compensation judge found that petitioner was entitled to compensation for his injuries.

Petitioner received orthopedic treatment from Dr. Malcolm Lesavoy at the University of California at Los Angeles (UCLA). Dr. Lesavoy recommended that petitioner be examined by Dr. Kimberly McCallum, a psychiatrist at the UCLA Neuropsychiatric Institute. Dr. McCallum prescribed medication for petitioner, and recommended that petitioner continue to receive psychotherapy from a clinical psychologist, Dr. Laurie Reifsnyder, near his home in Arroyo Grande.

Dr. Reifsnyder provided petitioner psychotherapy from August 1988 through January 1990. Petitioner’s employer refused to pay for this treatment, claiming, erroneously so, that it was duplicative of psychiatric treatment petitioner was receiving at UCLA. Invoking section 5814, petitioner applied for the imposition of a penalty against his employer.

The workers’ compensation judge judicially noticed that petitioner’s home was approximately 200 miles from UCLA, and found that the employer had acted unreasonably by insisting that petitioner be required to travel to UCLA to receive psychotherapy. Citing Gallamore, supra, 23 Cal.3d 815 and Toccalino v. Workers’ Comp. Appeals Bd. (1982) 128 Cal.App.3d 543 [180 Cal.Rptr. 427], the judge imposed a section 5814 penalty: a 10 percent increase in “the cost of all past, present, and future medical treatment, in an exact amount to be adjusted by the parties . . . .”

The WCAB affirmed the finding by the workers’ compensation judge that the employer had unreasonably refused to pay for Dr. Reifsnyder’s treatment [1217]*1217of petitioner. The WCAB, however, concluded that the penalty should be assessed only against the amount of the unpaid medical treatment as of the date of the award and future medical treatment, not against the cost of medical treatment for which the employer had already paid.2 In reaching this conclusion, the board relied on County of Los Angeles v. Workers’ Comp. Appeals Bd. (Crowe) (1980) 103 Cal.App.3d 877 [163 Cal.Rptr. 246] (Crowe), and Kaminski v. Workers’ Comp. Appeals Bd. (1981) 126 Cal.App.3d 778 [179 Cal.Rptr. 125] (Kaminski).

Petitioner sought review in the Court of Appeal. That court accepted review and concluded that the workers’ compensation judge had calculated the section 5814 statutory penalty correctly, as 10 percent of the entire medical treatment award, and that the WCAB had calculated the penalty incorrectly, as 10 percent of what remained of the medical treatment award after deducting the employer’s preaward payments. In arriving at its conclusion, the Court of Appeal followed Toccalino v. Workers’ Comp. Appeals Bd., supra, 128 Cal.App.3d 543 (Toccalino), and Consani v. Workers’ Comp. Appeals Bd. (1991) 227 Cal.App.3d 12 [277 Cal.Rptr. 619] (Consani). It rejected the two cases on which the WCAB had based its decision, finding them irreconcilable with Gallamore, supra, 23 Cal.3d 815. We granted review to resolve the division of authority.

Discussion

The resolution of the appropriate means of computing the penalty against the employer for unreasonable delay in payment to the injured employee centers on the construction of section 5814. As in all problems of statutory interpretation, it is appropriate to begin with the words of the provision to be construed, as these words are generally “the best indicator of legislative intent.” (Adoption of Kelsey S. (1992) 1 Cal.4th 816, 826 [4 Cal.Rptr.2d 615, 823 P.2d 1216].)

Section 5814 says: “When payment of compensation has been unreasonably delayed or refused, either prior to or subsequent to the issuance of an award, the full amount of the order, decision or award shall be increased by [1218]*121810 percent. The question of delay and the reasonableness of the cause therefor shall be determined by the appeals board in accordance with the facts. Such delay or refusal shall constitute good cause under section 5803 to rescind, alter or amend the order, decision or award for the purpose of making the increase provided for herein.” (Italics added.)

Section 5814 expressly requires that the penalty be calculated as a 10 percent increase of the “full amount of the order, decision or award.” It makes no provision for any deductions or credits, nor does it distinguish between benefits payable before and after the award. Thus, it is clear from the plain wording of the statute that the Legislature intended the penalty to be applied against the total amount of the award, without a deduction or credit for the employer’s timely preaward payments.

Additional support for this conclusion is found in the statute’s legislative history. Section 5814 was enacted in 1945. (Stats. 1945, ch. 802, § 2, p. 1497.) Before 1945, the subject of an employer’s unreasonable delay in payment of benefits to the injured employee was addressed in section 5811. As originally enacted in 1917, section 5811 granted the Industrial Accident Commission (the predecessor of the WCAB) discretionary authority to award interest on the amounts of compensation unreasonably delayed, at the rate of 1.5 percent per month during the period of delay.3 Section 5811 was amended in 1937 (Stats. 1937, ch. 90, § 5811, p. 302), but its substance was not changed. The amended statute also provided that the commission could allow interest on the payments unreasonably delayed.4

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848 P.2d 244, 4 Cal. 4th 1213, 18 Cal. Rptr. 2d 128, 58 Cal. Comp. Cases 172, 93 Daily Journal DAR 4486, 93 Cal. Daily Op. Serv. 2622, 1993 Cal. LEXIS 1558, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rhiner-v-workers-compensation-appeals-board-cal-1993.