California Code of Regulations › Title 8 - Industrial Relations › Division 1 - Department of Industrial Relations › Chapter 4.5 - Division of Workers' Compensation › Subchapter 2 - Workers' Compensation Appeals Board-Rules and Practice Procedure › Article 4 - Conduct of Parties, Attorneys and Non-Attorney Representatives › Section 10421 - Sanctions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) On its own
					 motion or upon the filing of a petition pursuant to rule 10510, the Workers'
					 Compensation Appeals Board may order payment of reasonable expenses, including
					 attorney's fees and costs and, in addition, sanctions as provided in Labor Code
					 section
					 5813. Before
					 issuing such an order, the alleged offending party or attorney must be given
					 notice and an opportunity to be heard. In no event shall the Workers'
					 Compensation Appeals Board impose a monetary sanction pursuant to Labor Code
					 section
					 5813 where the
					 one subject to the sanction acted with reasonable justification or other
					 circumstances make imposition of the sanction unjust.
(b) Bad faith actions or tactics that are
					 frivolous or solely intended to cause unnecessary delay include actions or
					 tactics that result from a willful failure to comply with a statutory or
					 regulatory obligation, that result from a willful intent to disrupt or delay
					 the proceedings of the Workers' Compensation Appeals Board, or that are done
					 for an improper motive or are indisputably without merit. Violations subject to
					 the provisions of Labor Code section
					 5813 shall
					 include but are not limited to the following:
(1) Failure to appear or appearing late at a
					 conference or trial where a reasonable excuse is not offered or the offending
					 party has demonstrated a pattern of such conduct.
(2) Filing a pleading, petition or legal
					 document unless there is some reasonable justification for filing the
					 document.
(3) Failure to timely
					 serve documents (including but not limited to medical reports and medical-legal
					 reports) as required by the rules of the Workers' Compensation Appeals Board,
					 or the Administrative Director, where the documents are within the party's
					 possession or control, unless that failure resulted from mistake, inadvertence
					 or excusable neglect.
(4) Failing
					 to comply with the Workers' Compensation Appeals Board's Rules of Practice and
					 Procedure, with the regulations of the Administrative Director, or with any
					 award or order of the Workers' Compensation Appeals Board, including an order
					 of discovery, which is not pending on reconsideration, removal or appellate
					 review and which is not subject to a timely petition for reconsideration,
					 removal or appellate review, unless that failure results from mistake,
					 inadvertence, surprise or excusable neglect.
(5) Executing a declaration or verification
					 to any petition, pleading or other document filed with the Workers'
					 Compensation Appeals Board:
(A) That:
(i) Contains false or substantially false
					 statements of fact;
(ii) Contains
					 statements of fact that are substantially misleading;
(iii) Contains substantial misrepresentations
					 of fact;
(iv) Contains statements
					 of fact that are made without any reasonable basis or with reckless
					 indifference as to their truth or falsity;
(v) Contains statements of fact that are
					 literally true, but are intentionally presented in a manner reasonably
					 calculated to deceive; and/or
(vi)
					 Conceals or substantially conceals material facts; and
(B) Where a reasonable excuse is not offered
					 or where the offending party has demonstrated a pattern of such
					 conduct.
(6) Bringing a
					 claim, conducting a defense or asserting a position:
(A) That is:
(i) Indisputably without merit;
(ii) Done solely or primarily for the purpose
					 of harassing or maliciously injuring any person; and/or
(iii) Done solely or primarily for the
					 purpose of causing unnecessary delay or a needless increase in the cost of
					 litigation; and
(B) Where
					 a reasonable excuse is not offered or where the offending party has
					 demonstrated a pattern of such conduct.
(7) Presenting a claim or a defense, or
					 raising an issue or argument, that is not warranted under existing law --
					 unless it can be supported by a non-frivolous argument for an extension,
					 modification or reversal of the existing law or for the establishment of new
					 law -- and where a reasonable excuse is not offered or where the offending
					 party has demonstrated a pattern of such conduct. In determining whether a
					 claim, defense, issue or argument is warranted under existing law, or if there
					 is a reasonable excuse for it, consideration shall be given to:
(A) Whether there are reasonable ambiguities
					 or conflicts in the existing statutory, regulatory or case law, taking into
					 consideration the extent to which a litigant has researched the issues and
					 found some support for its theories; and
(B) Whether the claim, defense, issue or
					 argument is reasonably being asserted to preserve it for reconsideration or
					 appellate review.
This subdivision is specifically intended not to have a
						"chilling effect" on a party's ability to raise and pursue legal arguments that
						reasonably can be regarded as not settled.
(8) Asserting a position that misstates or
					 substantially misstates the law, and where a reasonable excuse is not offered
					 or where the offending party has demonstrated a pattern of such
					 conduct.
(9) Using any language or
					 gesture at or in connection with any hearing, or using any language in any
					 pleading or other document:
(A) Where the
					 language or gesture:
(i) Is directed to the
					 Workers' Compensation Appeals Board, to any of its officials or staff or to any
					 party (or the attorney or non-attorney representative for a party);
					 and
(ii) Is patently insulting,
					 offensive, insolent, intemperate, foul, vulgar, obscene, abusive or
					 disrespectful; or
(B)
					 Where the language or gesture impugns the integrity of the Workers'
					 Compensation Appeals Board or its commissioners, judges or
					 staff.