The Court of Appeal Issued a Published Decision on the Issue of Interest on Attorney Fees Awards

This is a very significant case for workers’ compensation principles.

This case stems out of two applicants attorneys filing six related class action complaints alleging employers and insurers failed to pay them interest on attorney fee awards.

The trial court dismissed the action on a demurrer for lack of subject matter jurisdiction. The appellate court overturned this decision.

The appellate court looked at Labor Code section 5800 which governs the right to collect interest on compensation awards issued by the Workers’ Compensation Appeals Board. They analyzed the definition of “compensation” under this section.

The appellate court concluded that when a Workers’ Compensation Appeals Board award specifically provides for an attorney fee to be paid directly to the attorney, any post-award interest that accrues on the attorney fees must be paid directly to the attorney.

On a Findings and Award the defendant must calculate this and pay if appropriate. On a settlement it may be good practice to include a sentence that interest is waived if paid within 30 days.



Editor: Harvey Brown

Firm: Samuelsen, Gonzalez, Valenzuela and Brown

Address: 18881 Von Karman # 250 Irvine 92612

Phone: 949 252-1300

Case: Koszdin et al. v. SCIF
This is a published Court of Appeal case

Harvey Brown
3501 Jamboree Rd. Suite 602
Newport Beach, CA 92660

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