LABOR CODE SECTION 4903.5
§ 10886. Service on Lien Claimants
Where a lien claim is on file with the Workers' Compensation Appeals Board or where a
party has been served with a lien, and a compromise and release agreement or
stipulations with request for award or order is filed, a copy of the compromise and release
agreement or stipulations shall be served on the lien claimant.
No lien claim shall be disallowed or reduced unless the lien claimant has been given notice
and an opportunity to be heard.
The bases of any statue of limitations is notice of the Lien Claimants rights so that the
legal remedies my be exercised. In the area of industrial injury a Lien Claimant may not file
a declaration of readiness until the case and chief is resolved. Therefore, under Labor
Code Section 4903.5 the Lien Claimant has six months from the date the case settles, and
the time period cannot start until Lien Claimant receives notice of the case settling as put
forth under CCR 10886 as Lien Claimant would be denied due process without an
opportunity to heard or the ability to bring forth the appropriate action based on notice of
the settlement of the case in chief so that the lien claimant my file a Declaration of
Readiness. Therefore the defendants have an affirmative duty to serve the settlement
documents to start the 6 month statute of limitations for Lien Claimant to bring forth an
action. Lien Claimant has no other means to known that the case in chief resolved except
by service by the defendants which they failed to do in the present case therefore THE
TIME PERIOD FOR FILING WAS TOLLED UNTIL Lien Claimant received notice of the
settlement documents
Kaiser Foundation Hospitals v. Workers' Comp. Appeals Bd., 155 Cal. App. 3d 917, 202
Cal. Rptr. 520, 1984 Cal. App. LEXIS 2043, 49 Cal. Comp. Cas. (MB) 365 (Cal. App. 1st
Dist. 1984
“…when an employer fails to perform its statutory duty to notify an injured employee of his
workers' compensation rights, and the injured employee is unaware of those rights from
the date of injury through the date of the employer's breach, then the statute of limitations
will be tolled until the employee receives actual knowledge that he may be entitled to
benefits under the workers' compensation system. “
Loc Tran, Applicant v. Viet Nguyen Trucking Company, American All Risk Loss
Administrators, Defendants W.C.A.B. No. AHM 0080703--WCAB Panel: Commissioners
Moresi, Caplane, Murray (concurring, but not signing)Workers' Compensation Appeals
Board (Panel Decision) 2007 Cal. Wrk. Comp. P.D. LEXIS 42Opinion Filed July 30, 2007:
“To the extent that the WCJ finds that the notice described in Labor Code § 4904(a) was
given to the defendant, we find that the defendant was required to comply with WCAB
Rules 10886, 10888, and 10890. Pursuant to Labor Code § 4904(a), When a defendant
has been given written notice ''setting forth the nature and extent of any claim that is
allowable as a lien,'' a lien is created in favor of the claimant. WCAB Rule 10886 explicitly
requires a defendant to serve a lien claimant with a compromise and release when a lien
has been served on the defendant regardless of whether the lien claim has been filed with
the WCAB. We also note that Rules 10888 and 10890 are not limited in their application to
lien claimants who have filed their liens with the WCAB.
To the extent that the defendant was required to comply with WCAB Rule 10886 and
10890 and failed to do so, we find that the statute of limitations contained in Labor Code §
4903(a) was tolled until the Compromise and Release was served on the lien claimant.
Although our research has not revealed any cases in which the statute of limitations for a
lien claimant was tolled as a result of a defendant's failure to comply with notices required
by Appeals Board rules, there are a number of cases holding that the statute of limitations
for an injured worker to bring a claim is tolled during the period that the employer has not
given him or her required notices “
§ 10886. Service on Lien Claimants
Where a lien claim is on file with the Workers' Compensation Appeals Board or where a
party has been served with a lien, and a compromise and release agreement or
stipulations with request for award or order is filed, a copy of the compromise and release
agreement or stipulations shall be served on the lien claimant.
No lien claim shall be disallowed or reduced unless the lien claimant has been given notice
and an opportunity to be heard.
The bases of any statue of limitations is notice of the Lien Claimants rights so that the
legal remedies my be exercised. In the area of industrial injury a Lien Claimant may not file
a declaration of readiness until the case and chief is resolved. Therefore, under Labor
Code Section 4903.5 the Lien Claimant has six months from the date the case settles, and
the time period cannot start until Lien Claimant receives notice of the case settling as put
forth under CCR 10886 as Lien Claimant would be denied due process without an
opportunity to heard or the ability to bring forth the appropriate action based on notice of
the settlement of the case in chief so that the lien claimant my file a Declaration of
Readiness. Therefore the defendants have an affirmative duty to serve the settlement
documents to start the 6 month statute of limitations for Lien Claimant to bring forth an
action. Lien Claimant has no other means to known that the case in chief resolved except
by service by the defendants which they failed to do in the present case therefore THE
TIME PERIOD FOR FILING WAS TOLLED UNTIL Lien Claimant received notice of the
settlement documents
Kaiser Foundation Hospitals v. Workers' Comp. Appeals Bd., 155 Cal. App. 3d 917, 202
Cal. Rptr. 520, 1984 Cal. App. LEXIS 2043, 49 Cal. Comp. Cas. (MB) 365 (Cal. App. 1st
Dist. 1984
“…when an employer fails to perform its statutory duty to notify an injured employee of his
workers' compensation rights, and the injured employee is unaware of those rights from
the date of injury through the date of the employer's breach, then the statute of limitations
will be tolled until the employee receives actual knowledge that he may be entitled to
benefits under the workers' compensation system. “
Loc Tran, Applicant v. Viet Nguyen Trucking Company, American All Risk Loss
Administrators, Defendants W.C.A.B. No. AHM 0080703--WCAB Panel: Commissioners
Moresi, Caplane, Murray (concurring, but not signing)Workers' Compensation Appeals
Board (Panel Decision) 2007 Cal. Wrk. Comp. P.D. LEXIS 42Opinion Filed July 30, 2007:
“To the extent that the WCJ finds that the notice described in Labor Code § 4904(a) was
given to the defendant, we find that the defendant was required to comply with WCAB
Rules 10886, 10888, and 10890. Pursuant to Labor Code § 4904(a), When a defendant
has been given written notice ''setting forth the nature and extent of any claim that is
allowable as a lien,'' a lien is created in favor of the claimant. WCAB Rule 10886 explicitly
requires a defendant to serve a lien claimant with a compromise and release when a lien
has been served on the defendant regardless of whether the lien claim has been filed with
the WCAB. We also note that Rules 10888 and 10890 are not limited in their application to
lien claimants who have filed their liens with the WCAB.
To the extent that the defendant was required to comply with WCAB Rule 10886 and
10890 and failed to do so, we find that the statute of limitations contained in Labor Code §
4903(a) was tolled until the Compromise and Release was served on the lien claimant.
Although our research has not revealed any cases in which the statute of limitations for a
lien claimant was tolled as a result of a defendant's failure to comply with notices required
by Appeals Board rules, there are a number of cases holding that the statute of limitations
for an injured worker to bring a claim is tolled during the period that the employer has not
given him or her required notices “
Labor Code Section 4903.5
(a) No lien claim for expenses as provided in subdivision
(b) of Section 4903 may be filed after six months from the date on which the appeals
board or a workers' compensation administrative law judge issues a final decision,
findings, order, including an order approving compromise and release, or award, on the
merits of the claim, after five years from the date of the injury for which the services were
provided, or after one year from the date the services were provided, whichever is later.
(b) Notwithstanding subdivision (a), any health care provider, health care service plan,
group disability insurer, employee benefit plan, or other entity providing medical benefits
on a nonindustrial basis, may file a lien claim for expenses as provided in subdivision (b)
of Section 4903 within six months after the person or entity first has knowledge that an
industrial injury is being claimed. (c) The injured worker shall not be liable for any
underlying obligation if a lien claim has not been filed and served within the allowable
period. Except when the lien claimant is the applicant as provided in Section 5501, a lien
claimant shall not file a declaration of readiness to proceed in any case until the
case-in-chief has been resolved.
(d) This section shall not apply to civil actions brought under the Cartwright Act (Chapter
2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and
Professions Code), the Unfair Practices Act (Chapter 4 (commencing with Section 17000)
of Part 2 of Division 7 of the Business and Professions Code), or the federal Racketeer
Influenced and Corrupt Organization Act (Chapter 96 (commencing with Section 1961) of
Title 18 of the United States Code)
based on concerted action with other insurers that are not parties to the case in which the
lien or claim is filed.
(a) No lien claim for expenses as provided in subdivision
(b) of Section 4903 may be filed after six months from the date on which the appeals
board or a workers' compensation administrative law judge issues a final decision,
findings, order, including an order approving compromise and release, or award, on the
merits of the claim, after five years from the date of the injury for which the services were
provided, or after one year from the date the services were provided, whichever is later.
(b) Notwithstanding subdivision (a), any health care provider, health care service plan,
group disability insurer, employee benefit plan, or other entity providing medical benefits
on a nonindustrial basis, may file a lien claim for expenses as provided in subdivision (b)
of Section 4903 within six months after the person or entity first has knowledge that an
industrial injury is being claimed. (c) The injured worker shall not be liable for any
underlying obligation if a lien claim has not been filed and served within the allowable
period. Except when the lien claimant is the applicant as provided in Section 5501, a lien
claimant shall not file a declaration of readiness to proceed in any case until the
case-in-chief has been resolved.
(d) This section shall not apply to civil actions brought under the Cartwright Act (Chapter
2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and
Professions Code), the Unfair Practices Act (Chapter 4 (commencing with Section 17000)
of Part 2 of Division 7 of the Business and Professions Code), or the federal Racketeer
Influenced and Corrupt Organization Act (Chapter 96 (commencing with Section 1961) of
Title 18 of the United States Code)
based on concerted action with other insurers that are not parties to the case in which the
lien or claim is filed.
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