Griffith

Introduction

Applicant Johnnie Griffith seeks review of a decision of respondent Workers’ Compensation Appeals Board (Board) allowing respondent Pacific National Insurance Company (Pacific) a credit for the full amount of applicant’s recovery in a third party action without deduction of attorney’s fees and expenses.

Statement of Facts

On January 6, 1977, applicant sustained injuries when she was struck by an automobile while employed by Mel Adams, insured by Pacific.

In August 1985 the workers’ compensation judge (WCJ) awarded applicant $18,340 in permanent disability indemnity and other compensation benefits.

Applicant also maintained a civil action for damages against a third party (operator of automobile), resulting in a settlement whereby applicant received a gross recovery of $15,000. After deduction of attorney’s fees and costs, applicant’s net recovery in the civil action was $9,237.

Pacific then filed a petition in the workers’ compensation proceedings requesting credit in the amount of “$9,200.00 or other sums according to proof based on the applicant’s recovery in [the] third party case.”

The WCJ found Pacific is entitled to credit “for the full…