Lorenzo Yanez vs. Universal Label Printers, Sparta Insurance Company, Employers Compensation Insurance Company

This case involves an insurance dispute over contribution liability for a workers' compensation claim. The applicant, Lorenzo Yanez, sustained an injury while employed by Universal Label Printers, with coverage from Sparta Insurance Company and Employers Compensation Insurance Company. A Compromise and Release (C&R) agreement was approved, which included an addendum purportedly allocating liability between Sparta (17%) and Employers (87%). Sparta sought to enforce this addendum for reimbursement, but the trial judge denied their petition, finding a lack of jurisdiction due to no separate petition for contribution being filed within the statutory one-year period. The Appeals Board granted reconsideration, finding continuing jurisdiction to enforce the C&R and its addendum under Labor Code section 5803, and returned the matter to the trial judge to determine the enforceability and terms of the addendum.