Beverly Hilton Hotel v. Workers' Compensation Appeals BoardBeverly Hilton Hotel v. Workers' Compensation Appeals Board
Opinion
Beverly Hilton Hotel (Hotel) petitioned for writ of review of the decision of the Workers’ Compensation Appeals Board (Board) concluding that respondent Samson Boganim (Boganim) was entitled to vocational rehabilitation benefits under Labor Code
1
section 139.5. Effective January 1, 2009, however, Labor Code section 139.5 was repealed. (Stats. 2004, ch. 34, §§ 4,
FACTUAL AND PROCEDURAL BACKGROUND
Boganim filed two claims for workers’ compensation benefits for an injury due to his employment as a security officer/supervisor at Hotel. Boganim claimed a specific injury on September 3, 1990, and a cumulative trauma injury for the period of July 15, 1986, to November 24, 1991.
On December 15, 2003, the workers’ compensation judge (WCJ) found both injuries compensable. On March 4, 2004, Boganim requested vocational rehabilitation services pursuant to former section 139.5. Hotel denied the request, and no services were offered. On February 24, 2005, Boganim filed a request for a determination by the Rehabilitation Unit 3 that he was entitled to vocational rehabilitation services and benefits. He based his request on the medical opinion of a psychiatrist, who had determined that Boganim was a qualified injured worker for purposes of vocational rehabilitation services. 4 The Rehabilitation Unit denied the request on the basis that the psychiatric claim was not compensable. Boganim made another request on December 13, 2005, for a determination by the Rehabilitation Unit of his entitlement to benefits, this time supported by another medical opinion reporting on Boganim’s compensable injuries to his neck and back. Thereafter, on July 21, 2006, the Rehabilitation Unit issued a determination that Boganim was entitled to vocational rehabilitation benefits and services.
Hotel appealed the determination of the Rehabilitation Unit. A trial de novo was held at the local appeals board, and the determination of the Rehabilitation Unit was upheld. In its January 31, 2008, findings and award, the WCJ
None of the parties raised before the Board the issue of whether as of and after January 1, 2009, Boganim had a valid award of vocational rehabilitation services or benefits. The Rehabilitation Unit determination, the findings and award by the WCJ, and the decision by the Board on reconsideration were all issued before January 1, 2009, the effective repeal date of former section 139.5. Thus, before the Board, this issue was not ripe. On November 20, 2008, Hotel filed a timely petition for review with this court. We requested that the parties brief the issue of the effect on the repeal of former section 139.5. On June 10, 2009, the Board, in an en banc opinion in another case, held that the repeal of former section 139.5 terminated any rights to vocational rehabilitation benefits or services provided for or by orders or awards that were not final before January 1, 2009. (Weiner v. Ralphs Co. (2009) 74 Cal.Comp.Cases 736.)
Hotel contends the repeal of former section 139.5 ended all rights that would have derived from that statute, that there is no saving clause concerning the repealed statute, and that the law in effect at the time of this court’s decision must be applied. Boganim contends that the repeal of section 139.5 as of January 1, 2009, did not affect awards affirmed by the Board before that date; section 5502, subdivision (b)(3) is a saving clause; and, based on public policy and the liberal construction of the Labor Code, as mandated by section 3202, an employee must have a remedy to enforce a right when an employer was aware of an obligation to provide benefits and failed to comply with that obligation.
DISCUSSION
A. Vocational Rehabilitation
The California Workers’ Compensation Law (§ 3200 et seq.) is a statutory system enacted pursuant to a constitutional grant of power to the
B. Extinguishment of Right to Vocational Rehabilitation Benefits
“[W]hen a pending action rests solely on a statutory basis, and when no rights have vested under the statute, ‘a repeal of such a statute without a saving clause will terminate all pending actions based thereon.’ ”
(Governing Board v. Mann
(1977)
The court stated that the applicant’s “inchoate right to benefits under the workers’ compensation law is wholly statutory .... Hence, applicant did not have a vested right . . . .”
(Graczyk, supra,
In
Kleemann
v.
Workers’ Comp. Appeals Bd.
(2005)
“When new legislation repeals existing law, statutory rights normally end with repeal unless the rights are vested pursuant to contract or common law.”
(Kleemann, supra,
Similarly, in
Rio Linda Union School Dist. v. Workers’ Comp. Appeals Bd.
(2005)
Section 5908 provides for actions that can be taken by the Board on reconsideration of an order. Thereafter, a party may apply to an appellate court for a writ of review. (§ 5950.) The appellate court may deny review (see
Kaiser Foundation Hospitals
v.
Workers’ Comp. Appeals Bd., supra,
That an employer might have been able to delay finality of an award in order to take advantage of the repeal of former section 139.5 does not affect our ruling in this case. An applicant can seek to expedite the proceedings. And there is no showing in this case that Hotel did anything to cause a delay in the proceedings in order to take advantage of the effective date of the repeal of the statute.
C. No Saving Clause
“When the Legislature repeals a statute but intends to save the rights of litigants in pending actions, it may accomplish that purpose by including an express saving clause in the repealing act.”
(Bourquez v. Superior Court
(2007)
In reenacting section 139.5, the Legislature added subdivision (k), which stated, “This section shall apply only to injuries occurring before January 1, 2004.” It also added in subdivision (Z), “This section shall remain in effect only until January 1, 2009, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2009, deletes or extends that date.” (Stats. 2004, ch. 34, § 5.) There was no newly enacted statute, nor was the effective sunset date extended before January 1, 2009, or thereafter. The Legislature, in effect, preserved or saved vocational rehabilitation claims for nearly five years, but did not save nonfinal vocational rehabilitation rights as of or past January 1, 2009. As noted, although the Legislature provided for the possibility of a later statute that “deletes or extends” that January 1, 2009 date, no such statute was ever enacted.
There is no indication, express or implied—in any legislation passed in the same session in which former section 139.5 was repealed—that the Legislature intended to save vocational rehabilitation rights or remedies from and after January 1, 2009, or indefinitely. Section 47 of the legislation (Stats. 2004, ch. 34, § 47)
6
states: “The amendment, addition, or repeal of, any provision of law made by this act shall apply prospectively from the date of enactment of this act, regardless of the date of injury, unless otherwise specified, but shall not constitute good cause to reopen or rescind, alter, or amend any existing order, decision, or award of the Workers’ Compensation
Boganim argues that section 5502, subdivision (b), in effect, is a saving clause. That section, which governs workers’ compensation proceedings provides, “The court administrator shall establish a priority calendar for issues requiring an expedited hearing and decision. A hearing shall be held and a determination as to the rights of the parties shall be made and filed within 30 days after the declaration of readiness to proceed is filed if the issues in dispute are any of the following: [][]... [][] (3) The employee’s entitlement to vocational rehabilitation services, or the termination of an employer’s liability to provide these services to an employee.” (Ibid.)
Section 5502, subdivision (b)(3) has no applicability to the continuing application of a repealed statute. It was not part of Senate Bill No. 899 (2003-2004 Reg. Sess.), the legislation providing for the repeal of former section 139.5, or any other provision enacted during the 2003-2004 legislative session. Moreover, section 5502, subdivision (b)(3) is not rendered useless by the repeal of section 139.5. It is still applicable to those cases in which a final order has been rendered in connection with efforts to enforce, terminate or otherwise deal with the final order. (See § 5803.)
Former section 139.5, subdivision (f), which provided, “[t]he time within which an employee may request vocational rehabilitation services is set forth in former Section 5405.5 and Sections 5410 and 5803” cannot be deemed a saving clause because it too was repealed. Neither section 5803 nor section 5410 serves as a saving clause. Neither was part of the statute that repealed section 139.5, nor was either enacted at the same session in which
Section 5410 allows an injured worker to “institute proceedings” for vocational rehabilitation within five years of the date of the injury. It is a statute of limitations.
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That section does not suggest that an injured worker could continue to maintain such proceedings if they had not become final by the effective date of the repeal of former section 139.5. That the Legislature did not intend to allow vocational rehabilitation services to applicants whose cases were not final on January 1, 2009, is sufficiently clear, such that we do not have to consider admonitions (see § 3202) to interpret the Labor Code liberally
(Brodie v. Workers’ Comp. Appeals Bd.
(2007)
D. No Residual Effects
Former section 4642 (which required employer payments when there was a delay in providing vocational rehabilitation services referred to in former § 139.5) does not function as a so-called “ghost statute” to confer jurisdiction to hear disputes involving vocational rehabilitation services. The term “ghost statute” was used by the Board in
Godinez v. Buffets, Inc.
(2004) 69 Cal.Comp.Cases 1311, in which the issue before the Board was the timeliness of an appeal of a vocational rehabilitation determination, a subject governed by former section 4645, subdivision (d), which was repealed, effective 2004 (Stats. 2003, ch. 635, § 14.3). The Board noted that several sections relating to provisions of vocational rehabilitation services and benefits were repealed and that section 139.5 was repealed in 2004, but reenacted to apply to injuries occurring before January 1, 2004. The newly reenacted version of section 139.5 subdivision (c) referred to former section 4642 and former section 4644. Thus, the Board found that even though these statutes were repealed effective 2004 (Stats. 2003, ch. 635, § 14.3), “they still have a shadowy existence for injuries prior to January 1, 2004” and “[l]ike ghosts ‘doomed
The Legislature repealed not only former section 139.5, but also other statutes governing vocational rehabilitation benefits and services, as well as the regulations to implement those benefits and services. 8 As of the date of the repeal of former section 139.5, former section 4642 had also been repealed. Thus, section 4642 could not be given effect, for the statute upon which it is based, former section 139.5, has also been repealed. Thus, there is no residual application here of any repealed statute.
CONCLUSION
Applicants had rights to vocational rehabilitation awards up to January 1, 2009. After that, there were no such statutory rights available as to claims that were not vested by that date. Thus, neither the Board nor this court has jurisdiction to award such rights. “ ‘Even when a court has jurisdiction over the subject matter and the parties in a fundamental sense, it may have no “jurisdiction” or power to make orders which are not authorized by statute.’ ”
(Janzen
v.
Workers’ Comp. Appeals Bd.
(1997)
The Board’s decision is annulled.
Turner, P. J., and Kriegler, J., concurred.
The petition of respondent Samson Boganim for review by the Supreme Court was denied November 19, 2009, S176807.
Notes
All further statutory citations are to the Labor Code unless stated otherwise.
Original section 139.5 was repealed, and a new section 139.5 was enacted in 2004 providing for vocational benefits and specifying in subdivision (Z), “This section shall remain in effect only until January 1, 2009, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2009, deletes or extends that date.” (Stats. 2004, ch. 34, § 5.) Reference to former section 139.5 is to the version enacted in 2004 and repealed effective January 2009.
The administrative director of the Division of Workers’ Compensation established a vocational rehabilitation unit (Rehabilitation Unit) that reviewed requests for vocational rehabilitation services and developed rules and regulations for procedures to facilitate the timeliness and quality of vocational rehabilitation services. (Former § 139.5, subd. (a)(l)-(6).)
A “qualified injured worker” is a worker who is expected to have some permanent disability from an industrial injury or who is likely to be precluded from engaging in his occupation or in the occupation in which he or she was injured and who is reasonably expected to return to employment through the provision of vocational rehabilitation services. (Former § 4635, subd. (a)(1).)
Section 4663 states, inter alia, that apportionment of permanent disability shall be based on causation. Section 4664 states, inter alia, that the employer shall only be liable for the percentage of permanent disability directly caused by the injury arising out of the employment.
Sections 47 and 49 of the legislation (Stats. 2004, ch. 34, §§ 47 & 49) are “plus sections” of Senate Bill No. 899 (2003-2004 Reg. Sess.). “A ‘plus section’ is a provision of a bill that is not intended to be a substantive part of the code section or general law that the bill enacts, but to express the Legislature’s view on some aspect of the operation or effect of the bill. Common examples of ‘plus sections’ include severability clauses, saving clauses, statements of the fiscal consequences of the legislation, provisions giving the legislation immediate effect or a delayed operative date or a limited duration, and provisions declaring an intent to overrule a specific judicial decision or an intent not to change existing law. (See Legis. Counsel, Legislative Drafting Manual (1975) §§ 64-71, pp. 20-26.)”
(People v. Allen
(1999)
Former section 5405.5, another limitations period, was repealed. (Stats. 2003, ch. 635, §16.)
Regulations adopted by the administrative director and established for the implementation of vocational rehabilitation services have been repealed. (See Workers’ Compensation Laws of Cal. (LexisNexis, May 2009 Supp.) pp. 78-85.)