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Case Law Database

Access over workers' compensation decisions, including En Banc, Significant Panel Decisions, and writ-denied cases.

Case No. MISSING
Regular Panel Decision

In Re Pelham Fence Co., Inc.

Lilliam Roberts, Commissioner of Labor for New York, moved for a declaratory judgment to establish that she is not barred by an automatic bankruptcy stay from pursuing funds withheld from the debtor, Pelham Fence Co., Inc., by the New York State Department of Audit and Control (DAC). The Commissioner argued these funds were not part of the bankruptcy estate. Alternatively, she sought relief from the stay, citing a lack of equity in the fund (approximately $57,000 against liens exceeding $600,000). The Chapter 7 bankruptcy trustee opposed the motion, contending the funds were estate property and that he might avoid prior liens for the estate's benefit. The court, citing precedents regarding segregated funds and lack of debtor equity, granted the Commissioner's motion, ruling that the withheld funds, subject to a pre-petition withholding order, do not constitute property of the bankruptcy estate and are not subject to the automatic stay.

BankruptcyAutomatic StayProperty of the EstateDeclaratory JudgmentWithheld FundsLabor LawNew York StateChapter 7Lien AvoidancePrevailing Wage
References
5
Case No. ADJ7921523
Regular
Apr 13, 2017

CARMEN AGUIRRE vs. COUNTY OF LOS ANGELES

In this case, lien claimants Landmark Medical Management and PharmaFinance sought removal of a WCJ's order staying all proceedings on their lien claims pending further court order. The WCJ based the stay on criminal indictments against individuals allegedly associated with the lien claimants, under Labor Code section 4615, which automatically stays liens filed by or on behalf of an indicted provider. However, the Appeals Board granted removal, rescinded the stay, and returned the matter for further proceedings. This was because the record lacked sufficient evidence to establish the indicted individual's specific connection to the liens or whether the liens were filed "on behalf of" the indicted person, as required by section 4615.

Removal PetitionLien ClaimantsCriminal IndictmentLabor Code 4615Automatic StayWorkers Compensation FraudPetition for StayWCJ OrderSubstantial PrejudiceIrreparable Harm
References
6
Case No. ADJ7695261
Regular
Jan 04, 2019

MICHELLE BROUSSARD CHAVIS vs. CITY OF LOS ANGELES

The Workers' Compensation Appeals Board granted reconsideration of a dismissal order for lien claimant Med-Rx Funding, LLC. Med-Rx repeatedly failed to appear at lien conferences, citing a Labor Code section 4615 stay on its liens, which it argued estopped its participation. The Board found that while Med-Rx was on a state list of potentially stayed lien claimants, the specific lien in this case was not flagged in EAMS, and no evidentiary hearing was held to determine the validity of the claimed stay. Consequently, the dismissal was rescinded, and the case was returned for further proceedings to adjudicate the section 4615 stay issue.

Labor Code section 4615Lien claimantPetition for ReconsiderationOrder Dismissing LienNotice of Intent to DismissGood causeEvidentiary hearingDue processWCJEAMS
References
2
Case No. ADJ6981750
Regular
Jan 13, 2017

GUMERSINDO DELEON vs. ESPARZA ENTERPRISES, INC.

This case concerns a lien claimant's failure to pay a $100.00 lien activation fee required by Labor Code section 4903.06 by the date of a lien conference. The Workers' Compensation Appeals Board (WCAB) is considering rescinding the order dismissing the lien, but only if the fee is paid within ten days of this notice. The WCAB's intention is based on a court order allowing lien activation fees to be paid between November 9, 2015, and December 31, 2015, and the lien claimant's assertion of computer problems. If payment is received, the lien claim will be returned to the trial level for further proceedings.

Lien activation feeLabor Code Section 4903.06ReconsiderationOrder Dismissing Lien ClaimWCJDWCAngelotti Chiropractic v. BakerPreliminary injunctionNinth CircuitVacating injunction
References
7
Case No. ADJ1035201
Regular
Oct 04, 2016

VICTOR DURAN vs. DONUT INN, STATE FARM INSURANCE COMPANY

The Appeals Board is considering rescinding an order that dismissed Metro Med Shockwave's lien claim for failure to pay a $\$100$ lien activation fee. The WCJ dismissed the lien because the fee was not paid before the lien conference, citing prior precedent. However, the lien claimant argues they had until December 31, 2015, to pay the fee based on a DWC Newsline article referencing a court order. The Board intends to rescind the dismissal if the fee is paid within ten days, allowing further proceedings on the lien claim.

Labor Code section 4903.06Lien activation feeWorkers' Compensation Appeals BoardMetro Med ShockwaveFigueroa v. B.C Doering Co.Angelotti Chiropractic v. BakerPreliminary injunctionDWC NewslineReconsiderationRescind order
References
2
Case No. SAU8813471
Regular
Feb 07, 2023

KIMBERLY KENNEY vs. SEGUOYAH, INC., FARMERS INSURANCE EXCHANGE

The Workers' Compensation Appeals Board denied a lien claimant's petition for removal of an order consolidating liens and imposing a temporary stay. The consolidation aims to resolve a common legal issue regarding whether the lien claimant is controlled by a criminally charged physician, which would trigger an automatic stay under Labor Code section 4615. The Board found no due process violation, as the order only stays other lien issues pending the common issue's adjudication. Furthermore, the consolidation serves judicial efficiency by avoiding duplicate rulings on this critical threshold matter.

WCABPetition for RemovalOrder of Consolidation and StayLien ClaimantLabor Code section 4615Due ProcessIssue PreclusionConsolidation OrderWCJFarmers Insurance Exchange
References
17
Case No. ADJ9379743, ADJ9133071
Regular
Oct 23, 2017

SHERRY ARELLANES vs. COUNTY OF RIVERSIDE

The Workers' Compensation Appeals Board (WCAB) granted removal to the lien claimant, Firstline Health, regarding a WCJ's order staying its lien under Labor Code section 4615. The WCAB found the WCJ's initial factual findings regarding the stay were not supported by substantial evidence. While the WCAB rescinded those specific findings, it affirmed the WCJ's decision to set a new hearing to allow for evidence on whether Firstline's lien was filed "on behalf of" an indicted provider. The fundamental question remains whether the lien implicates the section 4615 stay, requiring further evidence.

Labor Code section 4615Petition for RemovalLien claimantWorkers' compensation fraudIndictmentMedical providerAutomatic stayDisposition of criminal proceedingsSubstantial evidenceOwnership documentation
References
2
Case No. 04-15739
Regular Panel Decision
Jun 19, 2006

Continental Casualty Co. v. Pfizer, Inc. (In re Quigley Co.)

Plaintiffs Continental Casualty Company and Continental Insurance Company initiated an adversary proceeding against Pfizer, Inc., Quigley Company, Inc. (a debtor-in-possession and Pfizer's subsidiary), and numerous other insurance companies. The plaintiffs sought a declaratory judgment that certain policies excluded coverage for asbestos-related claims, or alternatively, to reform them and apportion liability. Pfizer and Quigley moved to dismiss for lack of subject matter jurisdiction and failure to state a claim regarding anticipatory repudiation. A group of defendant insurers (Certain Insurers) sought to stay the proceeding and lift the automatic stay for arbitration. The court denied the motion to dismiss for lack of subject matter jurisdiction. It stayed Counts One, Two, and Three, and Guildhall's cross-claim, pending the arbitration of coverage disputes, granting the Certain Insurers relief from the automatic stay to commence arbitration. Count Four, concerning anticipatory repudiation, was dismissed without prejudice.

BankruptcyInsurance Coverage DisputeAsbestos LiabilityDeclaratory Judgment ActArbitration AgreementStay of LitigationMotions to DismissAnticipatory RepudiationWellington AgreementPolicy Exclusions
References
52
Case No. ADJ8 156794
Regular
Jan 12, 2017

NURY PEREZ vs. BLUE RIVER DENIM, THE HARTFORD

The Workers' Compensation Appeals Board (WCAB) is considering rescinding an order that dismissed a lien claim due to a failure to pay a $100 lien activation fee. The lien claimant, Premier Psychological Services (PPS), claims computer issues prevented timely payment. While the WCJ recommended denial of reconsideration, the WCAB may rescind the dismissal if PPS pays the activation fee within ten days of this notice. If paid, the lien claim will be returned to the trial level for further proceedings.

Lien activation feeLabor Code section 4903.06WCABadministrative law judgereconsiderationrescissiondismissallien conferenceCompromise and Releaseindustrial injury
References
1
Case No. ADJ9447000
Regular
Jun 07, 2017

SERGIO ENCISO vs. TOYS R US, BARRETT BUSINESS SERVICES, INC., ZURICH NORTH AMERICA

The Workers' Compensation Appeals Board granted removal and rescinded a Minute Order that had stayed a lien claim. The WCJ had found the lien stayed under Labor Code section 4615 based on an indictment of a co-defendant, Dr. Johnson. However, the Board found the WCJ erred by not allowing evidence on Dr. Johnson's relationship to the lien claimant and his indictment status. Crucially, the charges against Dr. Johnson were dismissed post-order, rendering the stay moot.

Workers' Compensation Appeals BoardPetition for RemovalLabor Code Section 4615Stay of LienIndictmentDismissal of ChargesLien ClaimantWCJAdministrative DirectorMedical Treatment Services
References
2
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