ADJ6547120 — California WCAB decision

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.

Other disputed issueMixed

The facts that decided it

What the panel treated as outcome-determinative, and which side it favoured.

The Stipulation and Award and/or Order dated January 11, 2018 incorrectly named ESIS, a third-party administrator, as the entity entitled to the credit, which is not authorized under Labor Code 3861.

Favours Defendant prevailed

This clerical error rendered the Stipulation and Award and/or Order unenforceable and required it to be set aside.

From the decision · page 3There was an error in the Stipulation and Award and/or Order which indicated that ESIS, a third-party administrator, is named as the entity entitled to the credit, instead of ACE AMERICAN INSURANCE COMPANY (ACE), the insurance company. There was also an error with the date. The Stipulation was actually signed on 1/11/2018, and not 1/11/2017. (Exhibit B)... [D]ue to the fact that Stipulation and Award/Order dated 1/17/2017 (1/17/2018) was dated incorrectly and a TPA does not have credit rights pursuant to Labor Code § 3861, the Stipulation is invalid and will be set aside.... Whether or not there was a stipulation does not effect the employer or the insurance carrier's rights to credit where there is a third-party recovery. The rights of the employer and insurance carrier credit right are based upon Labor Code § 3861.

Applicant failed to establish that employer negligence contributed to the motor vehicle accident.

The rules the panel named

Authorities as the decision cited them, with how this panel applied each one.

Labor Code 3861

Labor Code 3861 authorizes a credit to the employer or employer's insurer for any recovery by the employee from a third party for the injury, less expenses or attorneys' fees, applied against workers' compensation liability.

The credit may be reduced if employer negligence contributed to the injury, but here no employer negligence was established, so full credit is allowed.

From the decision · page 3There was an error in the Stipulation and Award and/or Order which indicated that ESIS, a third-party administrator, is named as the entity entitled to the credit, instead of ACE AMERICAN INSURANCE COMPANY (ACE), the insurance company. There was also an error with the date. The Stipulation was actually signed on 1/11/2018, and not 1/11/2017. (Exhibit B)... [D]ue to the fact that Stipulation and Award/Order dated 1/17/2017 (1/17/2018) was dated incorrectly and a TPA does not have credit rights pursuant to Labor Code § 3861, the Stipulation is invalid and will be set aside.... Whether or not there was a stipulation does not effect the employer or the insurance carrier's rights to credit where there is a third-party recovery. The rights of the employer and insurance carrier credit right are based upon Labor Code § 3861.

Labor Code 5804

Labor Code 5804 does not bar awarding a credit more than five years after injury date for sums paid attributable to third-party negligence.

The WCJ maintains jurisdiction to award credit despite the five-year period because the credit is for sums paid due to third-party recovery.

From the decision · page 8In Hodge v. Workers' Comp. Appeals Bd. (1981), 123 Cal.App. 3d 501 [46 Cal.Comp.Cases 1034], the Court of Appeal held that section 5804 does not bar the WCAB from awarding a credit more than five years after the date of injury to the employer for any sums the employer paid the applicant which were attributable to a third-party tortfeasor's negligence.

Cal. Code Regs., tit. 8, 10966

Cal. Code Regs., tit. 8, 10966 allows correction of clerical errors in decisions before petition for reconsideration is filed, but does not limit substantive jurisdiction.

The regulation permits correction of clerical errors but does not affect the WCJ's jurisdiction to decide the issue at trial.

Hodge v. Workers' Comp. Appeals Bd. (1981) 123 Cal.App. 3d 501

Hodge v. Workers' Comp. Appeals Bd. (1981) 123 Cal.App. 3d 501 holds that section 5804 does not bar awarding credit more than five years after injury for sums paid attributable to third-party negligence.

This case supports the WCJ's jurisdiction to award credit despite the five-year limitation in section 5804.

From the decision · page 8In Hodge v. Workers' Comp. Appeals Bd. (1981), 123 Cal.App. 3d 501 [46 Cal.Comp.Cases 1034], the Court of Appeal held that section 5804 does not bar the WCAB from awarding a credit more than five years after the date of injury to the employer for any sums the employer paid the applicant which were attributable to a third-party tortfeasor's negligence.

ADJ6547120 · September 26, 2025

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