Gellie

The question presented on review is whether the 10 percent penalty imposed pursuant to Labor Code section 5814 for unreasonable delay in paying interest on a permanent disability award should be calculated on the basis of the unpaid disability benefit rather than the interest accrual alone. We will conclude that the penalty must be computed on the basis of the unpaid compensation benefit enhanced by the interest due.

On October 28, 1973, petitioner Malcolm Gellie sustained serious injuries while employed as a set-up cook by Granny Goose Foods, Inc., a division of respondent Del Monte Corporation, when the safety valve of a pressure cooker exploded, spewing its scalding contents over petitioner who was thrown to the floor unconscious.

After several weeks of treatment at a hospital burn center, petitioner returned to his job where he began experiencing increasingly serious orthopedic problems resulting in his being placed on temporary disability in May of 1974. Following surgery to his low back and right elbow, petitioner was able to return to light duty status in August 1975. During the next few years petitioner continued his regular employment duties while undergoing…