ERNESTO LANGARICA vs. PENSKE TRUCK LEASING, OLD REPUBLIC GENERAL INSURANCE

This case concerns defendant Penske Truck Leasing's attempt to claim a credit against future workers' compensation benefits owed to applicant Ernesto Langarica. The applicant settled a civil lawsuit arising from an industrial injury, and the defendant had filed a lien in that civil case. The Workers' Compensation Appeals Board (WCAB) rescinded the prior finding and returned the case for further proceedings, holding that the settlement of the defendant's lien in the civil case did not automatically waive their right to claim a credit. The WCAB emphasized that the release language did not expressly waive the credit claim, and applicant's understanding of the settlement did not create a "warranted belief" of such a waiver. Further hearings are required to determine negligence and the final credit amount.