Fireman's Fund Insurance v. Workers' Compensation Appeals Board

—Can a stipulation, entered into in 2001, that resolved an unsettled legal issue between the two entities be set aside seven years later after the legal issue has been addressed by the appellate courts?

In 2001, the California Insurance Guarantee Association (CIGA) entered into a stipulation with Fireman’s Fund Insurance Company (FFIC) in which it agreed to be liable for 50 percent of an injured employee’s workers’ compensation medical treatment award and to administer the medical award, subject to claims of contribution from FFIC. The stipulation was entered as an order by the Workers’ Compensation Appeals Board (WCAB). In 2008, CIGA petitioned for a change of administrator and dismissal after several appellate court cases decided years after its settlement with FFIC indicated CIGA should not be responsible for the medical award. The workers’ compensation judge (WCJ) granted CIGA’s petition, concluding the 2001 stipulation and order were illegal and contrary to public policy. The WCAB denied reconsideration. FFIC sought a writ of review. We granted review and now conclude the WCAB erred in denying reconsideration. The order and stipulation should not have been set…