Authorities as the decision cited them, with how this panel applied each one.
Labor Code section 5813
Sanctions may be imposed under Labor Code section 5813 for bad-faith actions or tactics that are frivolous or solely intended to cause unnecessary delay.
Sanctions are designed to punish litigation abuses and control calendars; defendant's conduct did not rise to bad faith.
From the decision · page 5The Appeals Board is authorized to impose sanctions, costs and attorney's fees under
section 5813, against a person who engages in "bad-faith actions or tactics that are frivolous or
solely intended to cause unnecessary delay." (Lab. Code, § 5813.) Sanctions under section 5813
are designed to punish litigation abuses and to provide the court with a tool for curbing improper
legal tactics and controlling their calendars. (Duncan v. Workers' Comp. Appeals Bd. (2008) 166
Cal.App.4th 294, 302.) Accordingly, sanctions are similar to penalties under section 5814, in that
they are designed to have both remedial and penal aspects. (See Ramirez v. Drive Financial
Services (2008) 73 Cal.Comp.Cases 1324 (Appeals Board En Banc).)
WCAB Rule 10421
Sanctions under WCAB Rule 10421(b) include failure to timely serve documents unless due to mistake, inadvertence or excusable neglect.
Defendant's failure to timely serve and file proof of service was inadvertent and excusable, thus sanctions were not warranted.
From the decision · page 5WCAB Rule 10421, subdivision (b), authorizes sanctions for a party who has committed
"[b]ad faith actions or tactics that are frivolous or solely intended to cause unnecessary delay
including actions or tactics that result from willful failure to comply with a statutory or regulatory
obligation, that result from a willful intent to disrupt or delay the proceedings of the Workers'
Compensation Appeals Board, or that are done for an improper motive or are indisputably without
merit." (Cal. Code Regs., tit. 8, § 10421(b).) Subdivision (b) provides a comprehensive but non-
exclusive list of actions that could be subject to sanctions. As applicable here, violations subject
to sanctions, pursuant to WCAB Rule 10421(b), include:
WCAB Rule 10750
Service of notice of hearing must be by the WCAB unless specifically delegated to a party by the WCJ.
WCJ improperly relied on defendant to serve notice of hearing; no willfulness or prejudice found to warrant sanctions.
From the decision · page 4The WCJ explained in her Report that lien claimant was deprived of due process when
defendant requested the WCJ issue a NOI to dismiss the lien claimant despite defendant's failure
to serve lien claimant with a notice of hearing. (Report, at p. 7.) However, per WCAB Rule 10750,
unless the WCJ specifically delegates a party to serve a notice of hearing, service of notice of
hearing must be by the WCAB. In determining whether a party received notice of the hearing, the
WCJ must inquire as to whether they received the official communication from the WCAB.