What the panel ordered
Lien claimant's Petition for Reconsideration is denied.
Lien claimant Solano County DCSS sought reconsideration of the Order Approving Compromise and Release (OACR) issued by the WCJ on July 26, 2024.
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 C&R stipulated that defendant would adjust, negotiate, or litigate any timely filed lien, and no lien was of record at the time of the OACR. The DCSS lien was filed after the OACR, so it is defendant's responsibility per the C&R, not grounds to set aside the OACR.
From the decision · page 5In any event, these are the undisputed facts before us: 1) on July 25, 2024, defendant stipulated that it will adjust, negotiate, or litigate any timely filed lien; 2) the parties stipulated that no liens were known as of July 25, 2024, when they signed the settlement documents; 3) no lien was filed when the OACR issued on July 26, 2024; 4) per the OACR, the WCJ found that there were no liens of record; and 5) DCSS filed a lien on August 5, 2024, pursuant to section 4903(e). Based on the foregoing, the lien filed on August 5, 2024, is defendant's responsibility per Paragraph 8 of the C&R. To the extent that defendant and DCSS are unable to adjust or negotiate the lien at issue, either party may file a Declaration of Readiness now that the case-in-chief has been resolved.
The facts that decided it
What the panel treated as outcome-determinative, and which side it favoured.
The C&R stated no liens were known at the time of settlement and defendant would address any timely filed lien.
Favours Defendant prevailed
This established that the parties did not intend to set aside the OACR for a lien filed after approval.
DCSS filed its lien after the OACR was approved and no lien was of record at the time of approval.
Favours Defendant prevailed
The timing of the lien filing meant it was not grounds to set aside the OACR, but defendant remains responsible for addressing the lien.
From the decision · page 5In any event, these are the undisputed facts before us: 1) on July 25, 2024, defendant stipulated that it will adjust, negotiate, or litigate any timely filed lien; 2) the parties stipulated that no liens were known as of July 25, 2024, when they signed the settlement documents; 3) no lien was filed when the OACR issued on July 26, 2024; 4) per the OACR, the WCJ found that there were no liens of record; and 5) DCSS filed a lien on August 5, 2024, pursuant to section 4903(e). Based on the foregoing, the lien filed on August 5, 2024, is defendant's responsibility per Paragraph 8 of the C&R. To the extent that defendant and DCSS are unable to adjust or negotiate the lien at issue, either party may file a Declaration of Readiness now that the case-in-chief has been resolved.
The rules the panel named
Authorities as the decision cited them, with how this panel applied each one.
Civ. Code §§ 1550, 1565, 1580, 1636, 1638, 1639; TRB Investments, Inc. v. Fireman's Fund Ins. Co. (2006) 40 Cal.4th 19, 27; Burbank Studios v. Workers' Comp. Appeals Bd. (Yount) (1982) 134 Cal.App.3d 929, 935 [47 Cal.Comp.Cases 832]
A compromise and release is interpreted according to contract law; the parties' intent is determined from the writing if clear and explicit.
The C&R language was clear that defendant would address any timely filed lien; no ambiguity existed.
From the decision · page 4Since a compromise and release is a written contract, the parties' intention should be ascertained, if possible, from the writing alone, and the language of the contract governs its interpretation, if the language is clear and explicit, and does not involve an absurdity. (Civ. Code, § 1638, 1639; TRB Investments, Inc. v. Fireman's Fund Ins. Co. (2006) 40 Cal.4th 19, 27 (TRB Investments).) A contract must be so interpreted as to give effect to the mutual intention of the parties as it existed at the time of contracting, so far as the same is ascertainable and lawful. (Civ. Code, § 1636; TRB Investments, supra, at 27; County of San Joaquin v. Workers' Compensation Appeals Bd. (Sepulveda) (2004) 117 Cal.App.4th 1180, 1184 [69 Cal.Comp.Cases 193].)
What proof carried it
The evidence the panel weighed, by kind.
The parties stipulated in the C&R that no liens were known at the time of settlement and that defendant would address any timely filed lien.
No lien was of record when the OACR issued; DCSS filed its lien after approval of the C&R.
From the decision · page 5In any event, these are the undisputed facts before us: 1) on July 25, 2024, defendant stipulated that it will adjust, negotiate, or litigate any timely filed lien; 2) the parties stipulated that no liens were known as of July 25, 2024, when they signed the settlement documents; 3) no lien was filed when the OACR issued on July 26, 2024; 4) per the OACR, the WCJ found that there were no liens of record; and 5) DCSS filed a lien on August 5, 2024, pursuant to section 4903(e). Based on the foregoing, the lien filed on August 5, 2024, is defendant's responsibility per Paragraph 8 of the C&R. To the extent that defendant and DCSS are unable to adjust or negotiate the lien at issue, either party may file a Declaration of Readiness now that the case-in-chief has been resolved.
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