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CITY OF SANTA MONICA, Permissibly Self-Insured JESUS MARTINEZ WORKERS’ COMPENSATION APPEALS BOARDSTATE OF CALIFORNIAJESUS MARTINEZ, Applicant,vs.CITY OF SANTA MONICA, Permissibly Self-Insured, Defendant.Case Nos. ADJ4065327 (VNO 0542150)ADJ721451 (VNO 0542151)OPINION AND ORDER GRANTING RECONSIDERATION ANDDECISION AFTER RECONSIDERATION            Defendant seeks reconsideration of the September 12, 2012 Amended Joint Findings, Award and Order wherein the workers’ compensation administrative law judge (WCJ) found that applicant, while employed from August 7, 2006 through March 5, 2007 (ADJ4065327), sustained a cumulative trauma industrial injury to his psyche and gastrointestinal system that caused.25% permanent partial disability. The WCJ also found that applicant sustained a specific industrial injury to his right knee, spine, and right upper extremity on September 6, 2006 (ADJ721451) that caused 2% permanent partial disability.            Defendant contends that the WCJ erred in finding that applicant sustained 2% permanent disability in ADJ721451, arguing that applicant’s subjective complaints cannot be rated absent objective findings. Defendant also notes a clerical error in the total amount of permanent disability awarded.            We have considered the Petition for Reconsideration, and we have reviewed the record in this matter. We have received an Answer from applicant. The WCJ prepared a Report and Recommendation on Petition for Reconsideration, recommending that we deny reconsideration.            For the reasons discussed below, we will grant reconsideration, rescind the September 12, 2012 Joint Findings, Award and Order, and issue a new decision.            With respect to applicant’s right knee disability, the parties selected Dr. Washington as a panel qualified medical evaluator (PQME). After reviewing an MRI showing a tear in the medial meniscus, Dr. Washington opined: “Based upon this imaging study alone without significant clinical evidence to ,


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