Zurich American Insurance Co. v. WCAB
Last Activity: 12/22/2023
On 12/18/23, the 2nd DCA held in Zurich American Insurance Co. v. WCAB, that LC 5909 shows clear legislative intent to terminate WCAB's jurisdiction to consider petitions for reconsideration after 60 days, and that decisions made after that date are void as in excess of the Board's jurisdiction. The Board contended writ relief was not appropriate because its decision to apply an exception to LC 5909 constituted a discretionary application of the exception recognized in Shipley. The Board noted delays in the transmission from the district office to the Board often occur because of the nature of EAMS or normal human error - not through the fault of the parties - therefore, an extension of time to respond was necessary to ensure due process to all parties. The Board stated these irregularities arose in approximately 1 percent of petitions before the COVID-19 pandemic and 5 percent thereafter. Because LC 5909 divests the Board of jurisdiction to consider a deemed-denied petition for reconsideration after 60 days have passed, the Court disagreed with the conclusion in Shipley that a petitioner has a due process right to review by the Board after the deadline. The Court stated that even if Shipley can be read to apply equitable principles to allow the Board to consider a petition for reconsideration beyond the statutory deadline, the exception must be applied only (1) where a diligent petitioner's rights were violated due to the fault of the Board (such as a lost petition), and (2) the Board misled the petitioner in a manner that deprived the petitioner of a right to review by the Board or the appellate courts. The Court said petitioners must be diligent by promptly seeking the status of their petitions, and if the Board does not act within the 60-day time period, by seeking review of the deemed-denied petition under LC 5950 within 45 days. The Court issued a writ of mandate directing the Board to rescind its order granting CIGA's petition for reconsideration and ordering Zurich dismissed as a party defendant. [ADJ487398] [B321864]