General Accident Group v. Workers' Compensation Appeals Board

Petitioner General Accident Group (General) seeks review of a decision of respondent Workers’ Compensation Appeals Board (WCAB) wherein a 10 percent penalty pursuant to Labor Code section 5814 for the delay in payment of attorneys’ fees, was fixed at 10 percent of the permanent disability award. For reasons more fully set forth in our decision in State Comp. Ins. Fund v. Workers’ Comp. Appeals Bd. (La Favor) (1981) ante, page 143 [ 172 Cal.Rptr. 557 ], filed concurrently herewith, we annul the WCAB’s decision with directions to calculate the penalty as 10 percent of the attorneys’ fees only.

I

Respondent Gerry W. Lucas (hereinafter applicant) sustained an admitted industrial injury to his back, neck and arms. The workers’ compensation insurance carrier for applicant’s employer is General. The WCAB award to applicant consisted of several elements, to wit: (1) temporary disability indemnity payable for the period September 1, 1977, through June 13, 1978; (2) permanent disability indemnity of 30-1/2 percent; (3) further medical treatment; (4) payment for transportation expenses incurred by applicant in attending a medical evaluation; and (5) payment of the lien for medical…