Authorities as the decision cited them, with how this panel applied each one.
Cal. Code Regs., tit. 8, 10421(a)
Due process requires notice and opportunity to be heard before sanctions are imposed.
WCJ failed to hold a hearing before issuing sanctions, violating due process.
From the decision · page 11the Order of the NIT to Issue Sanctions and Award Costs. Due process requires that a party be
provided with reasonable notice and an opportunity to be heard. (Katzin v. Workers' Comp.
Appeals Bd. (1992) 5 Cal.App.4th 703, 711-712 [57 Cal.Comp.Cases 230].) A review of the record
of proceedings does not indicate that before issuing the Order, the WCJ held a hearing in order to
give Patrick Petronella and Pacific MRI an opportunity to be heard. The WCJ should have set this
matter for a hearing pursuant to WCAB Rule 10421.
Cal. Code Regs., tit. 8, 10421(b)
Sanctions may be imposed for bad faith actions or tactics that are frivolous or solely intended to cause unnecessary delay.
The WCJ cited bad faith and frivolous litigation as grounds for sanctions but did not create an adequate record to support these findings.
From the decision · page 10Before issuing such an order, "the alleged offending party or attorney must be given notice
and an opportunity to be heard." (Cal. Code Regs., tit. 8, § 10421(a) bold and italics added for
emphasis.) WCAB 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:
Cal. Code Regs., tit. 8, 10872(b)
Lien claimant must appear at hearings noticed prior to lien withdrawal unless excused by the WCAB.
Lien claimant failed to appear at the lien trial after withdrawing the lien, which may give rise to sanctions, but the record was inadequate to determine propriety.
From the decision · page 8(b) The lien claimant shall appear at any hearing that was noticed prior to the
resolution or withdrawal of the lien unless excused by the Workers'
Compensation Appeals Board. The lien claimant shall be excused from
appearing at any subsequently noticed hearing.