CompFox AI Summary
The Workers' Compensation Appeals Board granted reconsideration, reversing the WCJ's decision that barred the applicant's claims due to the employer's bankruptcy. The Board clarified that a bankruptcy discharge injunction does not prevent a WCAB proceeding if the goal is to collect from a collateral source like the Uninsured Employers Benefits Trust Fund (UEF), not the discharged bankrupt employer personally. Relying on In Re Munoz, the Board held that a WCAB proceeding can continue to establish an award against the bankrupt employer, which is a necessary precursor for the UEF to pay. Therefore, the applicant may proceed with their claims before the WCAB, provided they stipulate they are not seeking personal recovery from the bankrupt employer.
Full Decision Text1 Pages
The Workers' Compensation Appeals Board granted reconsideration, reversing the WCJ's decision that barred the applicant's claims due to the employer's bankruptcy. The Board clarified that a bankruptcy discharge injunction does not prevent a WCAB proceeding if the goal is to collect from a collateral source like the Uninsured Employers Benefits Trust Fund (UEF), not the discharged bankrupt employer personally. Relying on In Re Munoz, the Board held that a WCAB proceeding can continue to establish an award against the bankrupt employer, which is a necessary precursor for the UEF to pay. Therefore, the applicant may proceed with their claims before the WCAB, provided they stipulate they are not seeking personal recovery from the bankrupt employer.
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