Department of Employment Development v. Workers' Compensation Appeals Board

By this proceeding, Employment Development Department (petitioner) seeks annullment of an order approving a compromise and release which denied a lien asserted by petitioner.

The facts are not in dispute. Sequentially, they developed as follows:

On April 1, 1974, Eduardo Garcia, employed as a butcher, sustained an industrial injury to his back. The employer’s insurance carrier (Leatherby Insurance Company) voluntarily furnished medical care and paid temporary disability compensation of $119 per week until July 11, 1975. On that date, Garpia was again injured, this time in a nonindustrial accident. Upon learning of the nonindustrial injury, Leatherby stopped the temporary disability payments. On July 23, 1975, Garcia, without income because of Leatherby’s action, filed a claim with petitioner for unemployment compensation disability benefits. Thereafter, petitioner began unemployment disability payments to Garcia as a result of the nonindustrial injury. The payments were made retroactive to July 14, 1975. On August 7, 1975, Garcia filed a claim for benefits with respondent Workers’ Compensation Appeals Board (Board). The petitioner filed an opening and amended notice and…