Ortiz

In this case we are asked to determine whether an injured employee may seek benefits from the Uninsured Employers Fund (UEF) following discharge of the debts of the uninsured employer in bankruptcy. We determine that the employee in this case did not satisfy the statutory conditions required to render the UEF liable for payment. Thus, under the particular facts of this case, the injured employee is precluded from seeking such benefits.

Facts and Procedural History

Petitioner Louis Ortiz (applicant) filed an application for adjudication of his workers’ compensation claim alleging he was working as a manager for Charles Capone, doing business as Capone’s Vault (Capone) when he sustained an injury to his back in April 1987. At the time of the injury, Capone was uninsured for purposes of workers’ compensation. When applicant could not effect personal service on Capone, respondent Workers’ Compensation Appeals Board (board) ordered that summons be served by publication. Applicant then filed a declaration of readiness to proceed.

After a prehearing conference on May 31, 1988, which Capone did not attend, the workers’ compensation judge (WCJ) ordered that the UEF be joined as…