Judge May be Retinking Opinion on Lien Fee

Publish Date:Feb 03, 2014
Summary:
The November 14, 2013 Weekly Report noted that U.S. District Court Judge George H. Wu issued an order granting a temporary restraining order on the enforcement of the $100 workers’ compensation lien activation fee that was added to the Labor Code by SB 863, the 2012 workers’ compensation reform law.
The November 14, 2013 Weekly Report noted that U.S. District Court Judge George H. Wu issued an order granting a temporary restraining order on the enforcement of the $100 workers’ compensation lien activation fee that was added to the Labor Code by SB 863, the 2012 workers’ compensation reform law. Judge Wu based his ruling on the conclusion that the activation fee violates equal protection because the State may not be able to provide a rational basis for exempting some entities from having to pay the fee. The judge’s ruling is being reviewed by the U.S. Court of Appeals for the Ninth Circuit.

Two weeks ago, in another case challenging the activation fee, Judge Wu issued a tentative ruling which indicates that there may be a rational basis for how the Legislature structured payment of the fee. Judge Wu explained that equal protection arguments in this case were not put forward when he made his ruling in the November 2013 case. Judge Wu’s tentative ruling in this second case will be the subject of a court hearing in three weeks.
Copyright © 2017 by the Property Casualty Insurers Association of America
1415 L St., Suite 670, Sacramento, CA 95814
phone: 916-449-1370, fax: 916-449-1378