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 “
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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.