County of Los Angeles v. Workers' Compensation Appeals Board

Petitioner County of Los Angeles (County) contends respondent Workers’ Compensation Appeals Board (Board) erred in the method it calculated a 10 percent penalty against County pursuant to Labor Code section 5814 for County’s unreasonable delay in providing permanent disability payments to respondent injured worker, Charles Crowe. In light of Gallamore v. Workers' Comp. Appeals Bd. (1979) 23 Cal.3d 815 [ 153 Cal.Rptr. 590 , 591 P.2d 1242 ], we find merit to County’s contention.

I

The issue here is not whether a penalty should be assessed but rather how the 10 percent penalty should be calculated.

While employed by County on November 7, 1971, Crowe sustained injury arising out of and occurring in the course of employment to both his hips and lower extremities.

County concedes that it unreasonably delayed in voluntarily making permanent disability payments to Crowe from January 25, 1977, to July 11, 1977. (See Lab. Code, § 4650; Kerley v. Workmen's Comp. App. Bd. (1971) 4 Cal.3d 223 [ 93 Cal.Rptr. 192 , 481 P.2d 200 ]; Berry v. Workmen's Comp. App. Bd. (1969) 276 Cal.App.2d 381 [ 81 Cal.Rptr. 65 ].) However, in March 1977 the parties settled by an appeals board approved…