“[T]he legal principles governing compromise and release agreements are the same as those governing other contracts.” … “For a compromise and release agreement to be effective, the necessary elements of a contract must exist, including an offer of settlement of a disputed claim by one of the parties, and an acceptance by the other.”
(Burbank Studios v. Workers’ Comp. Appeals Bd. (Yount) (1982) 134 Cal.App.3d 929, 935, as quoted in Gaines, supra, at p. 19; see Civ. Code, §§ 1550, 1565, 1580 [as cited therein].)
“A contract must be so interpreted as to give effect to the mutual intention of the parties as it existed at the time of contracting, so far as the same is ascertainable and lawful.”
(County of San Joaquin v. Workers’ Compensation Appeals Bd. (Sepulveda) (2004) 117 Cal.App.4th 1180, 1184, as quoted in Gaines, supra, at p. 19.)
“[T]he WCJ’s jurisdiction to approve a settlement is only as to those benefits provided by the Labor Code, and a settlement of any claims outside of the Labor Code is not enforceable.”
(Gaines, supra, at p. 22.)
“The WCAB’s jurisdiction is over claims for benefits provided in the Labor Code, and the WCAB has jurisdiction to approve settlement of claims for benefits that are provided by the Labor Code.”
(Gaines, supra, at p. 18 [seeds ch. 2].)
“A proposed contract to settle a claim is in lieu of an award of compensation and the WCAB must determine whether it is valid.”
(Gaines, supra, at p. 19, citing Lab. Code, §§ 5000–5003.)
“Section 5003 states that every C&R shall contain the following information: (a) The date of the accident. (b) The average weekly wages of the employee, determined according to Chapter 1 of Part 2 of this division. (c) The nature of the disability, whether total or partial, permanent or temporary. (d) The amount paid, or due and unpaid, to the employee up to the date of the release or agreement or death, and the amount of the payment or benefits then or thereafter to be made. (e) The length of time such payment or benefit is to continue. (f) In the event a claim of lien under subdivision (f) or (g) of Section 4903 has been filed, the number of days and the amount of temporary disability indemnity which should be allowed to the lien claimant.”
(Lab. Code, § 5003, as quoted in Gaines, supra, at p. 17.)
“The injured worker must have knowledge of each of the benefits that they may be entitled to, and they must intend to release those claims for benefits. Mere execution of the form is not sufficient.”
(Gaines, supra, at p. 18, citing Camacho v. Target Corp. (2018) 24 Cal.App.5th 291, 301.)
“The preprinted form does not release claims that are outside of workers’ compensation, and even if a separate document is executed by the parties, the WCAB cannot approve a settlement of claims that are outside of the Labor Code.”
(Gaines, supra, at p. 18.)
“Thus, where the terms of the agreement are unclear or contradictory, or include provisions that are outside the Labor Code, the issue is whether a true contract has been formed.”
(Gaines, supra, at p. 19.)
“Pursuant to section 5500.5, all employers in a single cumulative injury are to be joined in a single action. While applicant is free to settle against one employer and pursue their claim against the others (§ 5500.5(c)), the employers must be joined in a single case as they have the right to be notified of any election or settlements made.”
(Gaines, supra, at p. 10, fn. 6, citing Lab. Code, § 5500.5 [seeds chs. 5, 16].)
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