Kaiser Foundation Hospital v. Workers' Compensation Appeals Board

On petition by Kaiser Foundation Hospitals/Permanente Medical Group (hereinafter Kaiser), we issued a writ of review to determine whether respondent Workers’ Compensation Appeals Board erred in charging part of a fee awarded an applicant’s attorney to Kaiser’s recovery on its lien claim for medical services. (Lab. Code, §§ 4600, 4904.)

The essential facts are not in dispute. The applicant was injured in the course and scope of her employment. Kaiser provided her with necessary medical treatment. She subsequently commenced a proceeding for benefits, in which she was represented at all pertinent times by an attorney. Kaiser filed a claim of hen in the proceeding.

Before the award in question was made, the applicant’s attorney petitioned for an order “allowing attorney’s fees against any payment ordered to Kaiser . . .” under its claim of lien. In the award, a board referee allowed the applicant permanent disability indemnity, specified medical-legal expenses, and an attorney’s fee. The award also ordered Kaiser reimbursed on its lien claim in the sum of $365.80, but charged that amount with $50 of the attorney’s fee.

Kaiser had not participated in the proceeding except…