David Henkel vs. Weyrick Companies, Inc.; State Compensation Insurance Fund

Weyrick Companies, Inc. and the State Compensation Insurance Fund were involved in a dispute over the attendance of a SCIF claims adjuster at a Mandatory Settlement Conference. The WCJ issued an Order to Show Cause re: Sanctions for SCIF's failure to comply with the WCJ's order to appear. SCIF filed a petition for removal, arguing that the WCJ lacked the power to compel its claims adjuster to appear at the MSC and that the OSC violated defendant's right to due process of law. The Appeals Board granted the petition for removal and rescinded the Order to Show Cause re: Sanctions, finding that the WCJ's order was not reasonable and that sanctions were not justified.

Weyrick Companies, Inc.; State Compensation Insurance Fund David Henkel WORKERS’ COMPENSATION APPEALS BOARDSTATE OF CALIFORNIADAVID HENICEL, Applicant,vs.WEYRICK COMPANIES, INC.;STATE COMPENSATION INSURANCE FUND, Defendants.Case No. ADJ4197101 (GOL 0096890)OPINION AND ORDER GRANTING REMOVAL ANDDECISION AFTER REMOVAL            Defendant, State Compensation Insurance Fund (SCIF), has filed a petition seeking the removal of this matter to the Appeals Board for review of an Order to Show Cause re: Sanctions (OSC), alleging it will suffer irreparable harm and substantial prejudice if a Worker’s Compensation Administrative Law Judge’s (WCJ) order compelling the attendance of a SCIF claims adjuster at the Mandatory Settlement Conference (MSC) on 90 minutes notice is allowed to stand. The WCJ issued the OSC to inquire into the justification for SCIF’s claims adjuster’s refusal to comply with the WCJ’s oral order to appear at the MSC.            SCIF contends the WCJ lacks the power to compel its claims adjuster to appear at the MSC to investigate SCIF’s settlement negotiation practices, and therefore SCIF cannot be sanctioned for failing to comply with an order that was in excess of the WCJ’s legal authority. SCIF asserts that it was unnecessary to require the claims adjuster to drive 47 miles to attend the MSC, as he was available by telephone as required by Rule 10240(b). SCIF further asserts that because Rule 10353 prohibits the taking of sworn testimony at an MSC, requiring the claims adjuster’s presence at the MSC for the purpose of inquiring into the defendant’s settlement strategy beyond that which could be provided by defendant’s counsel would be improper interference in the attorney-client , relationship. SCIF further argues that it was impractical to require the claims adjuster to interrupt his work to appear at the MSC on the same day and drive 47 miles each way with 90 minutes notice.            SCIF further contends the WCJ’s OSC violates defendant’s right

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