Ed Hoffman vs. Best Overnite Express, Inc.; Tower Select Insurance

In this case, the Employment Development Department (EDD) sought reconsideration of a decision that ordered them to pay a portion of the attorney's fee awarded to the applicant's attorney out of the stipulated award of retroactive temporary disability indemnity. The Workers' Compensation Appeals Board denied EDD's petition for reconsideration, finding that all of the elements of Labor Code section 4903.2 were met and that the attorney's services were instrumental in reversing the defendant's denial of the applicant's claim and establishing the common fund of retroactive temporary disability benefits.

Best Overnite Express, Inc.; Tower Select Insurance Ed Hoffman WORKERS’ COMPENSATION APPEALS BOARDSTATE OF CALIFORNIAED HOFFMAN, Applicant,vs.BEST OVERNITE EXPRESS, INC.; TOWERSELECT INSURANCE, Defendants.Case No. ADJ7865036 (Sacramento District Office)OPINION AND ORDER DENYING RECONSIDERATION            Lien claimant, Employment Development Department (EDD), seeks reconsideration of the Opinion and Decision After Reconsideration, issued March 28, 2013, in which we reversed the finding of a workers’ compensation administrative law judge (WCJ), and ordered EDD to pay a portion of the attorney’s fee awarded to applicant’s attorney out of the stipulated award of retroactive temporary disability indemnity, pursuant to Labor Code section 4903.2.            Our prior decision issued after applicant, Ed Hoffrnan, sought reconsideration from the Findings of Fact and Order, issued August 14, 2012, in which a workers’ compensation administrative law judg• (WCJ) found EDD was not required to pay a portion of the attorney’s fee. EDD did not file an answer to applicant’s petition for reconsideration.            EDD now contends that our finding that all of the elements of Labor Code section 4903.2 were met is not justified, asserting that it did not receive notice of the intent to award applicant’s attorney a fee, that it participated in applicant’s claim by filing its lien and attending some of the conferences and hearings, and there were no bona fide issues respecting the compensability or allowability of the lien for which applicant’s attorney’s services were required to effectuate recovery on the lien. Applicant’s attorney has filed an answer to EDD’s petition, contending his services were instrumental in reversing defendant’s denial of applicant’s claim and establishing the common fund of retroactive temporary disability benefits which funded EDD’s recovery, and disputing each point raised by EDD.            Following our review of the record, EDD’s petition and applicant’

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