Zurich Am. Ins. Co. v. Workers' Comp. App. Bd.
Annotate this CaseThe Zurich American Insurance Company sought a writ of mandate against the Workers’ Compensation Appeals Board (WCAB) and the California Insurance Guarantee Association (CIGA), in the Court of Appeal of the State of California. The issue at hand involved the interpretation of Labor Code section 5909, which states that if the WCAB does not act on a party’s petition for reconsideration of a decision by the workers’ compensation judge within 60 days, the petition is “deemed to have been denied.” CIGA filed a petition for reconsideration more than nine months past the filing date. The WCAB justified its late decision on the basis of an “administrative irregularity” that delayed CIGA’s petition. Zurich argued that the petition had already been denied by operation of law under section 5909. The Court of Appeal agreed with Zurich and held that the language and purpose of section 5909 showed a clear legislative intent to terminate the WCAB’s jurisdiction to consider a petition for reconsideration after the 60 days have passed. As a result, decisions on the petition made after that date are void as they exceed the agency’s jurisdiction. The Court of Appeal granted the writ of mandate, directing the WCAB to rescind its order granting CIGA’s petition for reconsideration and dismissing Zurich as a party defendant from the proceeding.
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