Harvey v. Boysen
Harvey v. Boysen
Opinion
[EDITORS' NOTE: THIS PAGE CONTAINS HEADNOTES. HEADNOTES ARE NOT AN OFFICIAL PRODUCT OF THE COURT, THEREFORE THEY ARE NOT DISPLAYED.] *Page 758 OPINION
Plaintiff Ethel Harvey commenced an action for damages for injuries sustained in the course of her employment by the County of Contra Costa, alleged to have been proximately caused by the negligence of defendant Edwin Boysen. The injuries had caused her to *Page 759 lose a substantial amount of time from her employment. During trial the action was settled by payment to her of $21,000.
A Contra Costa County ordinance numbered 36-8.1402 provided that any permanent employee of the county should receive full salary during any period of temporary work-connected disability.1 Since plaintiff was such a permanent employee she was paid her salary throughout the disability resulting from her injuries.
The county claimed a first lien, under Labor Code sections 3852 and 3856, subdivision (b), against the settlement proceeds, for $2,327.34, the amount of salary paid plaintiff according to the ordinance. The superior court thereafter made an order denying the claim of lien. The county has appealed from the order.
Sections 3852 and 3856, subdivision (b), are found in division 4 of the Labor Code (§§ 3201-6002, inclusive) which constitutes California's Workmen's Compensation Act.
Section
Section 3856, subdivision (b), states: "If the action is prosecuted by the employee alone, the court shall first order paid from any judgment for damages recovered the reasonable litigation expenses incurred in preparation and prosecution of such action, together with a reasonable attorney's fee which shall be based solely upon the services rendered by the employee's attorney in effecting recovery both for the benefit of the employee and the employer. After the payment of such expenses and attorney's fee the court shall, on application of theemployer, allow as a first lien against the amount of such judgment for damages, the amount of the employer's expenditure for compensation together with any amounts to which he may beentitled as special damages under Section 3852" (Italics added.)
(1) An employee's settlement with a third party tortfeasor is necessarily treated as a judgment in relation to sections 3852 and 3856, subdivision (b). (See Lab. Code, § 3860, subd. (b); R.E. Spriggs, Inc. v. Industrial Acc. Com.,
(2a) The basic question presented to us is very simply stated. Do Labor Code sections 3852 and 3856, subdivision (b), in the factual context of this case, entitle the County of Contra Costa to a lien on the proceeds of plaintiff's settlement?
It is proper, initially, to point out that plaintiff makes no contention that negligence of the county contributed in any way to her injury and damages. We are therefore not concerned with the well-known rule of Witt v. Jackson,
Labor Code section
(2b) Section 3856, subdivision (b), as indicated, entitled the employer to a lien against his employee's judgment, or settlement, in "the amount of the employer's expenditure forcompensation together with any amounts to which he may be entitled as special damages under Section
From the foregoing it will be seen that the salary paid plaintiff during her disability, by the County of Contra Costa, was in the nature of "compensation" paid, or "special damages," for which the county was entitled to the lien of Labor Code sections 3852 and 3856, subdivision (b).
We have considered the several remaining contentions of plaintiff.
(4) No merit is seen in the argument that the county waived, or should be estopped from asserting, its lien for failure to claim it in a timely manner. It has been held that the lien may timely be asserted any time before satisfaction of judgment (Jacobsen v. Industrial Acc. Com.,
We are told by plaintiff in her briefs that the amount of the lien, $2,327.34, had been deposited with the clerk of the superior court pending the lien proceedings, and that following denial of the lien, but before the county's notice of appeal, the clerk delivered the money to plaintiff. She contends that this circumstance constituted a waiver of the county's right to appeal. The contention is invalid. (5) It is only where the aggrieved party voluntarily does some act inconsistent with an intent to appeal that there is such a waiver. (See Reitano v.Yankwich,
Nor is merit seen in the argument that "the county's continuing pay is not in lieu of temporary disability benefits as required by statute." As we *Page 763 have pointed out, the payment of salary while plaintiff rendered no services to the county must be deemed "compensation" for which the county was entitled to a lien.
Payment to plaintiff of salary throughout her disability was not a "voluntary payment," a situation which, it is contended, precludes the right to subrogation. The county's ordinancemandated that she "shall continue to receive [her] full regular salary during any period of compensable temporary disability absence." The salary payments were of the sort found subject to section
(6) Nothing is seen in ordinance 36-8.1402 (see fn. 1,ante) which lends aid to the argument that by requiring return to the county of temporary disability payments, if any, from an insurance carrier, the county waived further subrogation rights under Labor Code section
For the several reasons stated the order "denying the motion of the County of Contra Costa for the imposition of a lien upon the interest of the plaintiff" is reversed.
Molinari, P.J., and Sims, J., concurred.
"A permanent employee shall continue to receive his full regular salary during any period of compensable temporary disability absence. `Compensable temporary disability absence,' for the purpose of this section, is any absence due to work-connected disability which qualified for temporary disability compensation under the Workman's [sic] Compensation Law set forth in Division 4 of the California Labor Code. When any disability becomes permanent, the salary provided in this section shall terminate.
"The employee shall return to the county all temporary disability payments received by him from the State Compensation Insurance Fund.
"No charge shall be made against sick leave or vacation for these salary payments. Sick leave and vacation rights shall not accrue for those periods during which such salary payments are made.
"The county contribution to the employees group medical plan under 36-8.1202 shall continue during any period of compensable temporary disability absence.
"The maximum period for the described salary continuation for any one injury or illness shall be one year from the date of temporary disability."
Reference
- Full Case Name
- Ethel Harvey, and v. Edwin Boysen, Defendant County of Contra Costa, And
- Cited By
- 10 cases
- Status
- Published