What the panel ordered
Petition for Reconsideration granted; May 21, 2025 Order of Joinder rescinded; March 13, 2024 Order Dismissing Party Defendants rescinded; matter returned to trial level for further proceedings and decision by WCJ.
Petition for Reconsideration/Removal filed by defendant State National Insurance Company seeking review of the WCJ's May 21, 2025 Order of Joinder, which joined State National Insurance Company as a party defendant; WCJ's order was challenged on grounds of res judicata and collateral estoppel due to prior dismissal; WCJ's May 21, 2025 Order of Joinder was rescinded by the Appeals Board and the matter was returned to the trial level for further proceedings.
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 Appeals Board found defects in the joinder process including lack of proper service and notice, and that the prior dismissal order was without prejudice, thus allowing reconsideration and rescission of the joinder and dismissal orders.
From the decision · page 1Defendant State National Insurance Company filed a Petition for Reconsideration/Removal (Petition) seeking review of the Order of Joinder issued by a Workers' Compensation Administrative Law Judge (WCJ) on May 21, 2025. Therein, the WCJ ordered State National Insurance Company joined as a party defendant in this matter.
The facts that decided it
What the panel treated as outcome-determinative, and which side it favoured.
State National Insurance Company was not properly served with the Petition for Joinder or Notice of Intent to Join
Favours Applicant prevailed
Lack of proper service rendered the joinder void ab initio, supporting rescission of the Order of Joinder.
From the decision · page 7Counsel for Technology Insurance Company, Inc., served a Petition for Joinder captioned "Petition for Joinder of Stratum HR, Simplify HR and State National Insurance, administered by CSMSI, and Dismissal of Better Nutritionals LLC and Technology Insurance Company administered by Amtrust," on May 9, 2015. Based on a review of the record, it does not appear that State National Ins. Co., was ever served with the Petition for Joinder.
The March 13, 2024 Order Dismissing Party Defendants was without prejudice as stipulated by the parties
Favours Defendant prevailed
The dismissal without prejudice allowed the Appeals Board to rescind the dismissal and joinder orders and return the matter for further proceedings.
From the decision · page 8III Petitioner raises the WCJ's March 13, 2024 order titled "Order Dismissing Party Defendants Simply HR, Inc. and State National Insurance Company, Inc.," in support of its contention that any subsequent rejoinder as a party defendant would violate the doctrines of res judicata and/or collateral estoppel. Petition asserts that the March 13, 2024 Order was based upon the parties' stipulation filed on May 12, 2024 requesting the dismissal of "State National Insurance Company administered by CCMSI for Employers HR". We note, however, that the stipulation explicitly requests, and the WCJ notes in his Report, that the dismissal of State National Insurance Company be "without prejudice". (Stipulation Regarding Dismissal and Proposed Order Thereon, p. 2 para. 4, Report, p. 2.). The Order of Dismissal did not include this portion of the stipulation, and the Order is silent on whether the dismissal is with or without prejudice. While there is no record on the matter, petitioner contends in their Petition that the Order of dismissal as a party defendant is with prejudice.
The rules the panel named
Authorities as the decision cited them, with how this panel applied each one.
Labor Code section 5909
Petition for reconsideration must be acted upon within 60 days of transmission to the Appeals Board (Labor Code section 5909)
The decision was issued on the 60th day after transmission, thus timely acting on the petition.
From the decision · page 3denied unless the Appeals Board acted on the petition within 60 days from the date of filing. (Lab.
Labor Code section 5313
Due process requires notice and opportunity to be heard before joinder of a party (Labor Code section 5313, Cal. Code Regs., tit. 8, 10382)
The WCJ's joinder order lacked proper service and notice, violating due process.
Cal. Code Regs., tit. 8, 10955(a)
Removal of non-final orders requires showing of substantial prejudice or irreparable harm (Cal. Code Regs., tit. 8, 10955(a))
The petitioner demonstrated irreparable harm and that reconsideration would not be adequate remedy if removal was denied.
From the decision · page 6Removal is an extraordinary remedy rarely exercised by the Appeals Board. (Cortez v.Workers' Comp. Appeals Bd. (2006) 136 Cal.App.4th 596, 600, fn. 5 [71 Cal.Comp.Cases 155, 157, fn. 5]; Kleemann v. Workers' Comp. Appeals Bd. (2005) 127 Cal.App.4th 274, 281, fn. 2 [70 Cal.Comp.Cases 133, 136, fn. 2].) The Appeals Board will grant removal only if the petitioner shows that substantial prejudice or irreparable harm will result if removal is not granted. (Cal. Code Regs., tit. 8, § 10955(a); see also Cortez, supra; Kleemann, supra.) A petitioner must also
What proof carried it
The evidence the panel weighed, by kind.
Lack of proper service and notice to State National Insurance Company regarding the Petition for Joinder and Notice of Intent to Join
From the decision · page 7Counsel for Technology Insurance Company, Inc., served a Petition for Joinder captioned "Petition for Joinder of Stratum HR, Simplify HR and State National Insurance, administered by CSMSI, and Dismissal of Better Nutritionals LLC and Technology Insurance Company administered by Amtrust," on May 9, 2015. Based on a review of the record, it does not appear that State National Ins. Co., was ever served with the Petition for Joinder.
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About this page
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