ADJ939270 — California WCAB decision

What the panel ordered

The Appeals Board granted the Petition for Reconsideration and vacated the Order of Dismissal issued by the WCJ on February 19, 2026.

Lien Claimant Dental Trauma Center seeks reconsideration of the Joint Order Dismissing Liens for failure to prosecute issued on February 19, 2026. The WCJ issued a Report and Recommendation on Defendant's Petition for Reconsideration recommending denial of Dental's Petition. The Appeals Board granted reconsideration and vacated the Order.

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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 issueApplicant prevailed

The Order dismissing liens for failure to prosecute was vacated because the Notice of Intent to Dismiss Liens (NIT) was void for lack of adequate notice and due process, and the Order did not provide specific bases or evidence for dismissal of each lien as required by law.

From the decision · page 5The Order of Dismissal is void by operation of law as explained below. First, the WCJ may issue a notice of intention for any proper purpose, including allowing, disallowing, or dismissing a lien. (Cal. Code Regs., tit. 8, § 10832 (a)(1).) Specifically, the Appeals Board or a workers' compensation judge may order a lien dismissed for lack of prosecution where a lien claimant fails to file a Declaration of Readiness to Proceed within 180 days of resolution of the underlying case or 180 days after a lien conference or lien trial is ordered off calendar. (Cal. Code Regs., tit. 8, § 10888(b).) Before issuing an order dismissing a lien, the Appeals Board or WCJ "shall issue a Notice of Intention to Dismiss the lien claim consistent with rule 10832 that provides at least 10 days for the lien claimant to file and serve a response showing good cause why an Order dismissing the lien should not issue." (Cal. Code Regs., tit. 8, § 10888(e).) Due process requires the issuance of an NIT to dismiss a petition as a condition precedent to dismissal, thereby affording the interested party or parties an opportunity to be heard. (Fortich v. Workers' Comp. Appeals Bd. (Fortich) (1991) 233 Cal.App.3d 1449, 1452-1453 [56 Cal.Comp.Cases 537]; Cal. Code Regs., tit. 8, § 10850; Cal. Code Regs., tit.

The facts that decided it

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

The Notice of Intent to Dismiss Liens (NIT) did not identify with particularity the basis for dismissal of each lien and was issued as a single document for multiple liens without individualized findings.

Favours Applicant prevailed

This lack of specificity rendered the NIT void and deprived lien claimants of adequate notice and opportunity to be heard, violating due process.

The Order dismissing liens was designated for service by Laughlin Falbo San Diego, which is prohibited and rendered service defective.

Favours Applicant prevailed

Defective service further invalidated the Order, supporting vacatur in favor of the lien claimant.

From the decision · page 6WCAB Rule 10832 (d) states, "Any order issued after a notice of intention shall be served by the Workers' Compensation Appeals Board pursuant to rule 10628." (Cal. Code Regs., tit. 8, § 10832(d).) WCAB Rule 10628(a) requires the WCAB to serve all parties of record with any final order, decision, or award issued by it, and shall not designate service. (Cal. Code Regs., tit. 8, § 10628(a).) Here, the Order following the NIT was designated for service by Laughlin Falbo San Diego. Not only is designated service of a final order prohibited, but it is also unclear whether CIGA was actually a proper party in both cases. Thus, service is defective.

The Order and NIT did not provide the basis for dismissal or outline the evidence relied upon, violating due process requirements.

Favours Applicant prevailed

Without a clear basis or evidence, the dismissal lacked due process, necessitating vacatur.

From the decision · page 7In this matter, neither the NIT nor the Order provides the basis for the dismissals. The WCJ argued in his Report that a WCJ's report may cure any technical or alleged defect in satisfying the requirements of section 5313 per Smales v. Workers' Comp. Appeals Bd. (1980) 45 Cal.Comp.Cases 1026. First, the Report cannot cure defects on the face of the NIT or the Order. As noted above, the Order was improperly designated for service, the NIT did not provide sufficient notice of the basis for dismissal, and the Order did not outline the evidence and basis for the dismissal of any of the liens. Defendant filed separate petitions for each lien they sought to be dismissed. Due process requires that each lien claimant is entitled to be apprised of the specific evidence and basis for dismissal in each case as there is no evidence that these cases have ever been consolidated. Second, even if the Order was not void, the Report in this case does not cure the Hamilton issue as, again, there is no citation to the evidence that supports the dismissal of each and every lien in each case, nor is there an opinion as to the basis for dismissal of each lien.

The rules the panel named

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

Cal. Code Regs., tit. 8, 10888(b)

A lien may be dismissed for lack of prosecution where a lien claimant fails to file a Declaration of Readiness to Proceed within 180 days of resolution of the underlying case or 180 days after a lien conference or lien trial is ordered off calendar.

The WCJ must issue a Notice of Intention to Dismiss the lien claim providing at least 10 days for the lien claimant to show good cause why dismissal should not issue.

From the decision · page 5The Order of Dismissal is void by operation of law as explained below. First, the WCJ may issue a notice of intention for any proper purpose, including allowing, disallowing, or dismissing a lien. (Cal. Code Regs., tit. 8, § 10832 (a)(1).) Specifically, the Appeals Board or a workers' compensation judge may order a lien dismissed for lack of prosecution where a lien claimant fails to file a Declaration of Readiness to Proceed within 180 days of resolution of the underlying case or 180 days after a lien conference or lien trial is ordered off calendar. (Cal. Code Regs., tit. 8, § 10888(b).) Before issuing an order dismissing a lien, the Appeals Board or WCJ "shall issue a Notice of Intention to Dismiss the lien claim consistent with rule 10832 that provides at least 10 days for the lien claimant to file and serve a response showing good cause why an Order dismissing the lien should not issue." (Cal. Code Regs., tit. 8, § 10888(e).) Due process requires the issuance of an NIT to dismiss a petition as a condition precedent to dismissal, thereby affording the interested party or parties an opportunity to be heard. (Fortich v. Workers' Comp. Appeals Bd. (Fortich) (1991) 233 Cal.App.3d 1449, 1452-1453 [56 Cal.Comp.Cases 537]; Cal. Code Regs., tit. 8, § 10850; Cal. Code Regs., tit.

Cal. Code Regs., tit. 8, 10888(e)

A Notice of Intention to Dismiss (NIT) must clearly state the reason(s) for dismissal to provide adequate notice and meaningful opportunity to respond.

The NIT here was void for lack of particularity and did not provide adequate notice to lien claimants.

From the decision · page 5The Order of Dismissal is void by operation of law as explained below. First, the WCJ may issue a notice of intention for any proper purpose, including allowing, disallowing, or dismissing a lien. (Cal. Code Regs., tit. 8, § 10832 (a)(1).) Specifically, the Appeals Board or a workers' compensation judge may order a lien dismissed for lack of prosecution where a lien claimant fails to file a Declaration of Readiness to Proceed within 180 days of resolution of the underlying case or 180 days after a lien conference or lien trial is ordered off calendar. (Cal. Code Regs., tit. 8, § 10888(b).) Before issuing an order dismissing a lien, the Appeals Board or WCJ "shall issue a Notice of Intention to Dismiss the lien claim consistent with rule 10832 that provides at least 10 days for the lien claimant to file and serve a response showing good cause why an Order dismissing the lien should not issue." (Cal. Code Regs., tit. 8, § 10888(e).) Due process requires the issuance of an NIT to dismiss a petition as a condition precedent to dismissal, thereby affording the interested party or parties an opportunity to be heard. (Fortich v. Workers' Comp. Appeals Bd. (Fortich) (1991) 233 Cal.App.3d 1449, 1452-1453 [56 Cal.Comp.Cases 537]; Cal. Code Regs., tit. 8, § 10850; Cal. Code Regs., tit.

Lab. Code, 5313

After a matter is submitted, a WCJ shall serve a summary of the evidence received and relied upon and the reasons or grounds upon which the determination was made.

The Order did not provide findings or evidence basis for dismissal, violating this requirement.

From the decision · page 6Section 5313 requires that after a matter is submitted, and together with findings of fact, orders, and/or awards, a WCJ "shall" serve "a summary of the evidence received and relied upon and the reasons or grounds upon which the determination was made." (Lab. Code, § 5313.) Decisions of the Appeals Board "must be based on admitted evidence in the record." (Hamilton v. Lockheed Corporation (2001) 66 Cal.Comp.Cases 473, 476 (Appeals Bd. en banc).) "Together with the findings, decision, order or award there shall be served upon all the parties to the proceedings a summary of the evidence received and relied upon and the reasons or grounds upon which the determination was made." (Lab. Code, § 5313; see Hamilton, supra, 66 Cal.Comp.Cases at p. 476.)

Lab. Code, 5909

A petition for reconsideration is deemed denied unless acted upon within 60 days from the date a trial judge transmits a case to the appeals board.

The Appeals Board acted timely on the petition for reconsideration within 60 days of transmission.

From the decision · page 4Under section 5909(a), the Appeals Board must act on a petition for reconsideration within 60 days of transmission of the case to the Appeals Board. Transmission is reflected in Events in the Electronic Adjudication Management System (EAMS). Specifically, in Case Events, under Event Description is the phrase "Sent to Recon" and under Additional Information is the phrase "The case is sent to the Recon board."

What proof carried it

The evidence the panel weighed, by kind.

Documentary evidencefavours Applicant prevailed

The Order dismissing liens was designated for service by Laughlin Falbo San Diego, which is prohibited and rendered service defective.

From the decision · page 6WCAB Rule 10832 (d) states, "Any order issued after a notice of intention shall be served by the Workers' Compensation Appeals Board pursuant to rule 10628." (Cal. Code Regs., tit. 8, § 10832(d).) WCAB Rule 10628(a) requires the WCAB to serve all parties of record with any final order, decision, or award issued by it, and shall not designate service. (Cal. Code Regs., tit. 8, § 10628(a).) Here, the Order following the NIT was designated for service by Laughlin Falbo San Diego. Not only is designated service of a final order prohibited, but it is also unclear whether CIGA was actually a proper party in both cases. Thus, service is defective.

Documentary evidencefavours Applicant prevailed

The Order and NIT did not provide the basis for dismissal or outline the evidence relied upon, violating due process requirements.

From the decision · page 7In this matter, neither the NIT nor the Order provides the basis for the dismissals. The WCJ argued in his Report that a WCJ's report may cure any technical or alleged defect in satisfying the requirements of section 5313 per Smales v. Workers' Comp. Appeals Bd. (1980) 45 Cal.Comp.Cases 1026. First, the Report cannot cure defects on the face of the NIT or the Order. As noted above, the Order was improperly designated for service, the NIT did not provide sufficient notice of the basis for dismissal, and the Order did not outline the evidence and basis for the dismissal of any of the liens. Defendant filed separate petitions for each lien they sought to be dismissed. Due process requires that each lien claimant is entitled to be apprised of the specific evidence and basis for dismissal in each case as there is no evidence that these cases have ever been consolidated. Second, even if the Order was not void, the Report in this case does not cure the Hamilton issue as, again, there is no citation to the evidence that supports the dismissal of each and every lien in each case, nor is there an opinion as to the basis for dismissal of each lien.

ADJ939270 · May 15, 2026

What the panel ordered

What was disputed, and how it came out

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The facts that decided it

The rules the panel named

What proof carried it

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