Fidelity & Casualty Co. of New York v. Workers' Compensation Appeals Board

Petitioner Fidelity and Casualty Company of New York (Fidelity) contends the Workers’ Compensation Appeals Board erred in assessing a 10 percent penalty in the amount of $2,383.38 pursuant to Labor Code section 5814 1 based upon the entire amount of a *194 multiparty compromise and release ($23,833.83) rather than Fidelity’s specified total contribution of $406.06 on the settlement. Fidelity does not here contend that it did not, in fact, unreasonably delay prompt payment of its share of the settlement, but contends the penalty should have been only $40.61 rather than $2,383.38.

Relevant Facts;

Respondent Bobby Joe Hart (Hart) in June 1975, filed with the appeals board an application for adjudication of claim alleging injury in his lungs as a result of his job exposure to fiberglass dust particles for various employers during the period 1954 through April 13, 1971. Numerous employers and insurance carriers were named as parties defendant for the above mentioned period of employment including F & F Heating Company, whose workers’ compensation insurance carrier was petitioner Fidelity for part of the time Hart was employed by F & F Heating Company.

As the result of…