What the panel ordered
Rescinded the February 17, 2026 Order Approving Compromise and Release and remanded to trial level for adequacy review of settlement and record creation supporting adequacy finding.p. 4
Petition for Reconsideration granted to study factual and legal issues; decision after reconsideration issued rescinding prior Order Approving Compromise and Release and remanding for adequacy review.
This docket was decided more than once. Shown here is the latest released decision; we also hold May 12, 2026.
What was disputed, and how it came out
Each issue the panel decided, with the reasoning it gave. An outcome is what this panel did on this record — not a rule, and not a prediction.
The record lacked sufficient information to support the adequacy of the Compromise and Release agreement, necessitating rescission and remand for adequacy review and record creation.
From the decision · page 4(Id. at pp. 30-31.) We have reviewed the record in each of these cases. Unfortunately, there is no information in any of them to support adequacy of the Compromise and Release (C&R). It appears that defense counsel attached a cover letter to the settlement alleging that “a serious issue” exists as to industrial injury but provided no explanation as to what issue exists. It also appears that the cover letter advised that all supporting documentation was uploaded, but we could find no such supporting documentation. It is unclear how the WCJ was able to find the C&R adequate based on the record before us. The parties and the WCJ are encouraged to review our en banc opinion in Gaines for guidance in order to create a sufficient record to support adequacy. Accordingly, as our Decision After Reconsideration, we rescind the February 17, 2026 OACR and return this matter to the trial level to conduct adequacy review of the proposed settlement and to create a record supporting the finding of adequacy. As we are rescinding the OACR on other grounds, we need not address defendant’s concern for holding attorney’s fees in trust as that issue is moot.
The facts that decided it
What the panel treated as outcome-determinative, and which side it favoured.
No information in the record to support adequacy of the Compromise and Release agreement.
Favours Applicant prevailed
This lack of information led to the rescission of the OACR and remand for adequacy review.
From the decision · page 4(Id. at pp. 30-31.) We have reviewed the record in each of these cases. Unfortunately, there is no information in any of them to support adequacy of the Compromise and Release (C&R). It appears that defense counsel attached a cover letter to the settlement alleging that “a serious issue” exists as to industrial injury but provided no explanation as to what issue exists. It also appears that the cover letter advised that all supporting documentation was uploaded, but we could find no such supporting documentation. It is unclear how the WCJ was able to find the C&R adequate based on the record before us. The parties and the WCJ are encouraged to review our en banc opinion in Gaines for guidance in order to create a sufficient record to support adequacy. Accordingly, as our Decision After Reconsideration, we rescind the February 17, 2026 OACR and return this matter to the trial level to conduct adequacy review of the proposed settlement and to create a record supporting the finding of adequacy. As we are rescinding the OACR on other grounds, we need not address defendant’s concern for holding attorney’s fees in trust as that issue is moot.
The rules the panel named
Authorities as the decision cited them, with how this panel applied each one.
Cal. Code Regs., tit. 8, § 10700(b)
The Workers’ Compensation Appeals Board shall inquire into the adequacy of all Compromise and Release agreements.
Applied to determine the adequacy of the settlement agreement in this case.
From the decision · page 3(b) The Workers’ Compensation Appeals Board shall inquire into the adequacy of all Compromise and Release agreements and
The en banc decision in Gaines, et. al., v. ABM Aviation, Inc., et. al. (2026) 91 Cal.Comp.Cases ___; 2026 Cal. Wrk. Comp. LEXIS 32
Guidance for creating a sufficient record to support adequacy of Compromise and Release agreements.
From the decision · page 4(Id. at pp. 30-31.) We have reviewed the record in each of these cases. Unfortunately, there is no information in any of them to support adequacy of the Compromise and Release (C&R). It appears that defense counsel attached a cover letter to the settlement alleging that “a serious issue” exists as to industrial injury but provided no explanation as to what issue exists. It also appears that the cover letter advised that all supporting documentation was uploaded, but we could find no such supporting documentation. It is unclear how the WCJ was able to find the C&R adequate based on the record before us. The parties and the WCJ are encouraged to review our en banc opinion in Gaines for guidance in order to create a sufficient record to support adequacy. Accordingly, as our Decision After Reconsideration, we rescind the February 17, 2026 OACR and return this matter to the trial level to conduct adequacy review of the proposed settlement and to create a record supporting the finding of adequacy. As we are rescinding the OACR on other grounds, we need not address defendant’s concern for holding attorney’s fees in trust as that issue is moot.
What proof carried it
The evidence the panel weighed, by kind.
Lack of supporting documentation and explanation for alleged serious issue in industrial injury in the settlement record
From the decision · page 4(Id. at pp. 30-31.) We have reviewed the record in each of these cases. Unfortunately, there is no information in any of them to support adequacy of the Compromise and Release (C&R). It appears that defense counsel attached a cover letter to the settlement alleging that “a serious issue” exists as to industrial injury but provided no explanation as to what issue exists. It also appears that the cover letter advised that all supporting documentation was uploaded, but we could find no such supporting documentation. It is unclear how the WCJ was able to find the C&R adequate based on the record before us. The parties and the WCJ are encouraged to review our en banc opinion in Gaines for guidance in order to create a sufficient record to support adequacy. Accordingly, as our Decision After Reconsideration, we rescind the February 17, 2026 OACR and return this matter to the trial level to conduct adequacy review of the proposed settlement and to create a record supporting the finding of adequacy. As we are rescinding the OACR on other grounds, we need not address defendant’s concern for holding attorney’s fees in trust as that issue is moot.
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About this page
- A published decision of the California Workers' Compensation Appeals Board, taken apart by what it turned on. The Board publishes the decision itself; this page adds the extraction and quotes the passage behind every claim.
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