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INTER-OFFICE MEMORANDUM TO: FROM: DATE: RE: ALL ATTORNEYS/CLIENTS W. Joseph Truce October 10, 2001 BOARD S INSISTENCE TIIATWCJ S ANALYZE BOTIt TIIE FACTS AND TItE LAW IN SUPPORT OF TitEIR DECISIONS As further evidence that the newly constituted Workers Compensation Appeals Board in San Francisco- under the guidance of Chairman, Merele Rabine- continues to insist that itsjudges"clearly and in fitll detail" analyze not only the facts in a particular case but the applicable law that applies to those facts; I am enclosing a recent Opinion and Order Granting Petition for Reconsideration and Decision After Reconsideration in which the Board returned the case of Eddie Paul v. Bates U.S.A.; Travelers Insurance Group to the Workers Compensation Judge as the WCJ s initial decision was inadequate. The Eddie Paul case involved an issue ofemployment/independent contractor and in a brief Opinion on Decision the WCJ found that the applicant was an employee of our client. As the Decision of the WCJ xvas inconsistent xvith the facts and the applicable laxv, I filed a Petition for Reconsideration and my contentions are fully set forth in the Board s opinion. When I began practicing in the workers compensation arena it xvas quite common for a party filing a Petition for Reconsideration to then file a reply brief to either the judge s Report on Reconsideration or the Answer to the Petition for Reconsideration. Ho~vever, the Board then promulgated WCAB Rule 10848 which holds that the only pleadings allowed are a Petition for Reconsideration, the judge s report on the Petition and the Answer filed by the responding party. However, WCAB Rule 10848 does provide that the Board may grant a request pursuant to Rule 10848 to file an additional pleading (reply). Therefore in cases in which I think a reply is appropriate, I file xvith the Board a request that the Board allow a reply briefpursuant to WCAB Rule 10848 and I attach my reply briefto the request. Please note on page 2 (line 13-15) the Board commented as follows: "Defendant has filed a request under Rule 10848 to reply to the WCJ, which is accepted... "

Inter-Office Memorandum October 11, 2001 Page 2 BOARD S INSISTENCE TItAT WCJ S ANALYZE BOTIt THE FACTS AND TIlE LAW IN SUPPORT OF THEIR DECISIONS Therefore our job may not be concluded upon the filing of a Petition for Reconsideration. We should, of course, carefully review the Answer by the responding party as well as the Report and Recommendation on the Petition for Reconsideration filed by the trial judge. If we believe that a reply is then appropriate we should file and serve a request that the reply be considered by the Appeals Board- pursuant to WCAB Rule 10848. Please note that in the Eddie Paul case the Board observed that the decision of the WCJ was not sufficient and requested that the WCJ issue a new Findings & Award"which sets forth specifically, clearly, and in full detail the evidence the reviewed and relied upon and the reasons or grounds upon which the determination of employment, in employment by Bates U.S.A. as opposed to any other entity was made..." The Board then referred the WCJ to the leading cases on this issue. These were the same cases that were the subject ofmy Trial Brief and also my Petition for Reconsideration. WJT:~vf Enclosure- Opinion and Decision re Eddie Paul v. Bates U.S.A.

WORKERS COMPENSATION APPEALS BOARD STATE OF CALIFORNIA 9 EDDIE PAUL, Applicant, BATES, U.S.A.; TRAVELERS INSURANCE GROUP, Defendant(s). Case No. VNO 378851 OPINION AND ORDER GRANTING PETITION FOR RECONSIDERATION ANq) DECISION AFTER RECONSIDERATION :~2 Defendant seeks reconsideration of the Findings and Axvard issued on :. :1.3 June 27, 2001, wherein the workers compensation administrative law judge.. :1.4 f~vc_,ji determined that applicant sustained an industrial injury to his neck " :1.5: while employed by Bates U.S.A. as a stunt actor on February 5, 1997. The :1.6. WCd also found that applicant is entitled to temporary disability from :1.7. February 6, 1997 to November 5, 1997, at the maximum rate, and that the :1.8. injury caused permanent disability of 44V:~%. The WCJ further determined that 19, the claim was not barred by the statute of Imitations. 201i Defendant contends that (11 it was not the employer of applicant, 23 I. was acting as an independent contractor at the time that he was injured; 13) 2 ~.! arguing that he was either an employee and/or Independent contractor for E.P. 221 Industries, Scenery West, Big Eye Films, or Hyundai Corporation; [2) applicant 24"; applicant s claim is barred by the statute of limitations; and (41 applicant 2 5: ~vas not entitled to benefits at the maxsmum rate. Applicant fried an answer. 26 In the Report and Recommendation on Petition for Reconsideration 27!! {report} the WCJ noted that applicant was initially an independent contractor,

hired to prepare and deliver an underwater car to be used in the filming of a television commercial. TheWCJ points.out, ho~vever, that :the. method of filming the car ~vas "changed" and "the job became dangerous". Due to the increased danger, applicant insisted that he be compensated pursuant to his Screen Actor s Guild membership as a "stunt actor. The WCJ found that Bates, U.S.A. ~vas the agent for Hyundai and ~vas present at the set for i flming on Catalina Island. The WCJ reported that applicant, a "very credible witness", testified that Bates U.S.A. had the right to hire and fire people on the set. Applicant was told that he would be on a "higher pay scale as a stunt actor and that he would be covered by insurance." Thereafter, applicant s union fried a grievance against Bates U.S.A., resulting in a settlement agreement that paid applicant for the stunt work. The WCJ concludes that "the record shows that applicant s status changed from independent contractor to employee." Defendant has filed a request under Rule 10848 to reply to the WCJ, which is accepted. 16 Based on the record, and for the reasons set for below, we will grant 17., reconsideration, rescind the Findings and Award issued June 27, 2001, and 18 remand this matter to the WCJ for a new Findings and Award which sets forth 19 specifically, clearly, and in full detail the evidence received and relied upon and 20: the reasons or grounds upon which the determinations of employment, and 21 : employment by Bates U.S.A. as opposed to any other entity, was made. In this 22, regard the WCJ should discuss the issue within the framework of analysis 23 provided by Boretlo v. Department of Industrial Relations (1989) 48 Cal. 3 rd 341, 24 54 Cal.Comp.Cases 80; Yellow Cab v. Workers Cornp. Appeals Bd. (Edwinson) 251 (1991) 56 Cal.Comp.Cases 34; and Gonzalez v. Workers" Comp. Appeals Bd. 26 (1996) 46 Cal.App.4th 1584, 61 Cal.Comp.Cases 566. III PAUL, EDDIE 2

While we. make. no decision regarding the ultimate outcome of such analysisat this time, we are persuaded that a more comprehensive statementof the facts and analysis of applicable law regarding applicant s relationship to Bates U.S.A. is required. Similarly, we take no position at this time with regard 5 6.7 8 to the other issues raised herein. For the foregoing reasons, IT IS ORDERED that defendant s Petition for Reconsideration, fried July 17, 2001, be, and it hereby is, GRANTED. 12" 23" ~, 24~ 25~ 26 27.-

IT IS FLrRTPIER ORDERED as the decision after reconsideration of the 2 3.Worker s Compensation Appeals- Board of the Findings and A~vard issued June 27, 2001, be, and it hereby is, RF.~CINDED, and the matter is returned to the workers compensation administrative law judge for a ne~v decision. 5 6 I CONCUR,!3! C~l~n S.., 14ii. CONCU ~II~G, BUT NO~ sl~l~ ~5 ~ JANICE JAMISON MURRAY 19,i DATED AND FILED IN SAN FRANCISCO, CALIFORNIA SEP 1? ~ool SI~RVICE BY MAIL ON SAID DATE TO ALL PARTIES LISTED ON THE OFFICIAL ADDRESS RECORD, EXCEPT LIEN CLAIMANTS. i 22~ i: 26, 27.! PAUL, EDDIE 4