Opinion
In the published portion of this opinion we consider whether an order by the Workers’ Compensation Appeals Board (WCAB or Board) on reconsideration under Labor Code section 5900 is final for purposes of appellate review under Labor Code section 5950. At trial, the workers’ compensation judge applied the presumption of liability in Labor Code section 5402 and awarded benefits; the Board reversed and remanded for a new trial on all issues, including liability. Relying upon
Safeway Stores, Inc.
v.
Workers’ Comp. Appeals Bd.
(1980)
Summary of Proceedings Below
Petitioner Ray Maranian was hired in 1983 as a field pest control adviser by J.R. Simplot, Inc. He worked from the Reedley office until 1993. In the performance of his job, Maranian was consistently exposed to agricultural chemicals, both in the warehouse and in the fields. In January 1990, he began to experience medical problems and in February was diagnosed with chronic lymphocytic leukemia. A qualified medical examiner concluded the disease was work related.
On September 2, 1994, Maranian sent Simplot, via certified mail, an “Employee’s Claim for Workers’ Compensation Benefits.” Maranian sought out-of-pocket expenses incurred in his medical care and treatment and reserved the right to collect the costs of the future medical expenses likely to be incurred as his disease progressed. The claim was addressed to Simplot’s Lathrop office and was picked up at the Lathrop post office by Simplot receptionist Bonnie Moran. The return receipt bears Moran’s signature, but *1071 the date of delivery is not inserted. Moran had no recollection of receiving Maranian’s claim for benefits. She testified her job duties included the daily collection of the Lathrop office’s mail and its subsequent sorting and distribution. Mail intended for other offices, such as the Reedley office, would be forwarded by bulk mail. Mail for Reedley was delivered by the United States Postal Service to the mailbox on site.
Upon receipt of Maranian’s claim at the Reedley office, Susan Lynch, also employed by Simplot, prepared the employer’s portion of the claim and had Mary Lou Mattison, another Simplot employee then visiting the Reedley office, sign the claim on behalf of the employer. The claim was next forwarded to the insurer, respondent Industrial Indemnity Company (Industrial Indemnity).
Mattison testified she worked at another office and normally would not have received workers’ compensation claims from the southern part of the state, but she did remember, when she was in Reedley, being given Maranian’s claim to sign by Susan Lynch. Mattison also testified she did not know how Maranian’s claim got to Reedley from Lathrop.
No evidence established the date on which Mattison signed the claim for Simplot. September 15, 1994, is inserted on the form as the date the claim was received by the employer, the date the employer first knew of the injury, and the date the form was provided to the employee. Mattison was given this date by Lynch, but did not know whether the date referred to the receipt of the claim at Reedley or at Lathrop.
Susan Lynch testified mail was sent to Reedley from the Lathrop office, and the transit time between the offices was not extraordinarily long. She did not recall Maranian’s claim or Mattison’s handling of the claim in Reedley, but it was company policy that Mattison deal with all workers’ compensation claims. She normally received claims via the mail. No evidence established how or when the claim was transferred from Moran to Lynch.
On September 21, 1994, Industrial Indemnity notified Maranian by letter that the company had the claim and would make a determination of compensability by December 13, 1994. On December 8, 1994, Industrial Indemnity denied the claim.
At trial, Maranian claimed Simplot’s denial was untimely and invoked the presumption of Labor Code 1 section 5402. Section 5402 provides as follows: “Knowledge of an injury, obtained from any source, on the part of an employer, his or her managing agent, superintendent, foreman, or other *1072 person in authority, or knowledge of the assertion of a claim of injury sufficient to afford opportunity to the employer to make an investigation into the facts, is equivalent to service under Section 5400. If liability is not rejected within 90 days after the date the claim form is filed under Section 5401, the injury shall be presumed compensable under this division. The presumption is rebuttable only by evidence discovered subsequent to the 90-day period.”
The matter was heard and submitted to the presiding workers’ compensation judge (WCJ) on April 2, 1997. On May 20, 1997, the WCJ issued an award, finding that Simplot had not denied the claim within the 90 days specified in section 5402. The WCJ therefore applied the statutory presumption, concluded Maranian had sustained a work-related injury, and awarded benefits. Had he been allowed to testify at trial, Simplot’s medical expert would have taken the position there was no reasonable medical probability of a relationship between Maranian’s occupational exposure to agricultural chemicals and his leukemia.
On June 6, 1997, Simplot filed a petition with respondent WCAB seeking reconsideration of the WCJ’s award in favor of Maranian. On July 11, 1997, the WCJ filed an amended award correcting an omission in the initial award. Simplot filed a new petition for reconsideration with the WCAB on July 24, 1997.
On September 22, 1997, the WCAB issued an order granting Simplot’s petition for reconsideration, on the ground the record did not support the WCJ’s factual finding with respect to the date Simplot received Maranian’s claim, and ordered that the record be more fully developed on this issue.
Depositions of various employees at Simplot were taken and the parties returned to trial. On March 16, 1999, the WCJ issued a new award, again finding in favor of Maranian. The WCJ determined that the company’s denial was untimely under section 5402 because the only reasonable inference to be drawn from the evidence was that the claim had been received by Simplot before September 15, 1994. As a result, the WCJ again applied the statutory presumption and awarded Maranian benefits.
Simplot filed a third petition for reconsideration with WCAB, challenging the WCJ’s March 16 order. On June 4, 1999, the WCAB granted the petition, vacated the order, and remanded the matter for a trial on the merits of Maranian’s claim, both as to liability and benefits. The WCAB made the following specific findings:
“1. [Maranian’s] claim of injury, mailed to [Simplot] on September 2, 1994, was denied by [Simplot] within 90 days after its receipt by [Simplot].
*1073 2. The Labor Code section 5402 presumption of compensability is not applicable to [Maranian’s] claim herein.”
Maranian filed his petition for writ of review with this court on July 19, 1999. We issued the writ on November 10, 1999.
Discussion
I.
A.
The WCAB decision challenged by Maranian did not decide the merits of Maranian’s claim for compensation, and it is possible Maranian may succeed, at the ordered plenary trial, in proving liability and a right to the benefits he wants. Were the usual rules of civil appellate practice to apply, the WCAB’s order would not be a “final,” and therefore not an appealable, order. (See Code Civ. Proc., § 904.1;
Rao v. Campo
(1991)
Given the interim nature of the order in issue here and what we perceive to be a paucity of relevant case law, we directed the parties to file supplemental briefing on the question whether the WCAB’s June 4, 1999 order was one to which section 5950 applied. We will hold that it is.
B.
Section 5950 provides: “Any person affected by an order, decision, or award of the appeals board may, within the time limit specified in this *1074 section, apply to the Supreme Court or to the court of appeal for the appellate district in which he resides, for a writ of review, for the purpose of inquiring into and determining the lawfulness of the original order, decision, or award or of the order, decision, or award following reconsideration. The application for writ of review must be made within 45 days after a petition for reconsideration is denied, or, if a petition is granted or reconsideration is had on the appeal board’s own motion, within 45 days after the filing of the order, decision, or award following reconsideration.” (§ 5950.) 2
Though on its face this statute would seem to cover without restriction any order of the WCAB, in fact only those orders, decisions and awards of the WCAB deemed to be final have been held to be within section 5950.
3
(Safeway, supra,
*1075
A “final order” for purposes of section 5900 includes any order which settles, for purposes of the compensation proceeding, an issue critical to the claim for benefits, whether or not it resolves all the issues in the proceeding or represents a decision on the right to benefits.
(Kaiser Foundation Hospitals
v.
Workers’ Comp. Appeals Bd.
(1978)
“For example, an interim order of the Board or a WCJ that presents a threshold issue is deemed to be final, and may properly be the subject of a petition for reconsideration. A threshold issue is an issue that is basic to the establishment of the employee’s rights to benefits, such as the territorial jurisdiction of the Board, the existence of the employment relationship, and statute of limitations issues. Likewise, the term ‘final order’ includes orders dismissing a party, rejecting an affirmative defense, granting commutation, terminating liability, and determining whether the employer has provided compensation coverage.” (2 Hanna, Cal. Law of Employee Injuries and Workers’ Compensation,
supra,
§ 28.04, pp. 28-12 to 28-13, fns. omitted; see also
Kosowski v. Workers’ Comp. Appeals Bd., supra,
It follows that interim orders, which do not decide a threshold issue, such as intermediate procedural or evidentiary decisions, are not “final” for purposes of section 5900. (See
Safeway, supra,
The characterization of an order as final and therefore susceptible to Board reconsideration has critical consequences. For example, the failure of the aggrieved party to petition timely for reconsideration of such an order bars later challenge to the propriety of the order before the WCAB or before the courts. (See
Rymer
v.
Hagler, supra,
Drawing on section 5900, the court in
Safeway
concluded that the standard for determining what decisions are subject to reconsideration under section 5900 and the standard for determining what decisions are reviewable under section 5950 should be similar. As the
Safeway
court put it, ”[w]hether severance and preliminary determination of threshold issues will serve statutory policy in a particular case is a question which ought to be decided, in the first instance, by the Board. Viewing sections 5900 and 5950 as establishing similar tests of ripeness will permit the appellate court to accord appropriate deference to the Board’s judgment.”
(Safeway, supra,
Safeway involved a WCJ decision, in a bifurcated hearing, against the employee on a coverage issue (the application of the special mission exception to the “going and coming” rule). The employee petitioned the WCAB for reconsideration. The WCAB granted reconsideration, found in favor of the employee, i.e., that the injury was compensable, and remanded the matter for further hearing and decision on the other issues raised by the employee’s claim. The employer sought section 5950 judicial review of the WCAB order on reconsideration.
The court in
Safeway
examined the policies supporting piecemeal review during compensation proceedings in defiance of the usual rule requiring finality. It pointed out that judicial review of Board orders determining threshold issues may in many cases better serve the statutory scheme and its
*1077
objectives of expedition and economy by avoiding unnecessary litigation, that the courts are not obliged to grant every petition for review that is filed, that adequate safeguards in the form of monetary sanctions exist to protect against abuse of the appellate process, and that permitting interim review would avoid prejudice to a party who fails to seek review of an order determined to be final despite a remand by the Board.
(Safeway, supra,
The
Safeway
court in part relied upon the only decision then existing on the subject of finality,
Gumilla v. Industrial Acc. Com.
(1921)
Safeway
has been followed, expressly or implicitly, in several subsequent appellate decisions, occasionally with comment. (See
Kosowski v. Workers’ Comp. Appeals Bd., supra,
C.
We agree with the analysis and result in
Safeway
and therefore adopt its holding that the test under section 5950 is the same as the test under section 5900—that is, a petition for review of an order by the WCAB lies when the order conclusively determines, for purposes of the compensation proceeding, a substantial issue basic to the employee’s entitlement to benefits. (Sa
feway, supra,
Also, we are not entirely convinced that
Safeway
abandons section 5950 judicial jurisdiction to the WCAB. (See
Kosowski v. Workers’ Comp. Appeals
*1079
Bd., supra,
The WCAB, by granting Industrial’s petition for reconsideration, necessarily found the WCJ’s ruling applying the presumption to be a final order under section 5900. In a letter brief filed in this appeal, however, the WCAB takes the position its determination that the presumption did not apply was not final for purposes of section 5950 because Maranian’s claim for benefits was not authoritatively resolved by the Board’s order remanding for a full trial. 7 This position appears to be consistent with those cases holding that writ review is premature when the Board’s decision leaves open the possibility of a recovery by the claimant. (See Southern Cal RTD v. Workers’ Comp. Appeals Bd., supra, 41 Cal.Comp.Cases at p. 351.)
In effect, the WCAB wants us to engraft the final judgment rule onto section 5950; that is, that a petition for writ of review lies only from a Board order which constitutes the agency’s last word on the employee’s claim, whether favorable or unfavorable to the employee. This alternative, urged by the dissent in Safeway, was rejected by the majority, which entertained the *1080 employer’s petition even though the WCAB order in issue remanded for trial on the merits of the employee’s claim.
We decline to go along with the Board. Though the Legislature well knows how to be specific in setting the standards governing appellate review (see Code Civ. Proc., § 904.1), section 5950 is cast in general language, and, as we noted earlier, would if read literally authorize petitions for writs of review to be taken from any WCAB order, regardless of the order’s subject or effect.
Safeway’s
restriction on this broad language was announced in 1980. In the intervening 20 years the statute has not been amended to negate the
Safeway
annotation. We take this inaction as an expression of the Legislature’s satisfaction with the principles of
Safeway.
While we agree that a failure to act by the lawmakers in the face of a judicial decision construing a statute is not conclusive in determining the legislative intent behind the statute
(Massey
v.
Workers’ Comp. Appeals Bd.
(1993)
II.
Industrial’s petition for reconsideration raised, and the WCAB’s reconsideration decision was a final ruling on, a threshold issue affecting a substantial right under the Safeway standard. Whether the evidence concerning Maranian’s mailing and Simplot’s handling and receipt of the compensation claim invoked the presumption of section 5402 is pivotal to the question of Maranian’s entitlement to benefits. A legally incorrect decision by the WCAB applying the presumption would prevent Industrial from exercising a substantial right to which it is lawfully entitled—contesting liability at trial. A legally incorrect decision by the WCAB barring application of the presumption would prevent Maranian from exercising a substantial right to which he is lawfully entitled—the benefit of the statutory presumption. We do not know what evidence the parties will likely introduce at a trial in support of their respective positions on the issue of liability. While we thus cannot say it is more probable than not that Maranian will succeed in establishing his entitlement to benefits, it is not unreasonable to expect that the WCAB’s order on reconsideration could be outcome-determinative on the question of liability.
The applicability of the presumption is also determinative of the scope of the trial. With the aid of the presumption, Maranian is entitled to compensation as a matter of law; without the aid of the presumption, Maranian’s eligibility for benefits would depend upon the sufficiency of the case made *1081 by Maranian at trial. If the presumption is enforced, the evidence at trial will be limited to appropriate benefits; if the presumption is not enforced, the evidence at trial must encompass both liability and benefits, undoubtedly a lengthier and more costly proceeding than one where the presumption forecloses all disputes about liability. Thus, an authoritative pretrial decision about the presumption’s application in this case will promote both efficiency and economy, by on the one hand avoiding the waste of a plenary trial on liability and on the other by avoiding a duplicate or wasteful retrial on benefits.
In our estimation, then, these characteristics of the WCAB’s decision on reconsideration bring it within the ambit of the
Safeway
rule.
(Safeway, supra,
III. *
Disposition
The judgment (order) of the WCAB is affirmed.
Ardaiz, P. J., and Buckley, J., concurred.
Notes
All further references are to the Labor Code unless otherwise noted.
The Legislature’s authority to prescribe the manner by which workers’ compensation decisions shall be subject to review by the appellate courts is found in the California Constitution. (Cal. Const., art. XIV, § 4.)
The scope of judicial review is expressly limited. Section 5952 provides that review shall not extend beyond a determination of whether:
“(a) The appeals board acted without or in excess of its powers.
“(b) The order, decision, or award was procured by fraud.
“(c) The order, decision, or award was unreasonable.
“(d) The order, decision or award was not supported by substantial evidence.
“(e) If findings of fact are made, such findings of fact support the order, decision or award under review.” (§ 5952.)
The court is not permitted to hold a trial de novo, take further evidence or exercise its independent judgment on the evidence. (§ 5952.) The findings of the WCAB on questions of fact are conclusive and not subject to review. (§ 5953.)
The WCAB may affirm, rescind, or modify the order, on the record before it or after ordering additional evidence. (§§ 5906, 5907, 5908.) The WCAB may also deny the petition,
*1075
expressly (§§ 5901, 5908.5) or by inaction (§ 5909). The WCAB’s express decision to grant or deny a petition for reconsideration must be in writing and must state the evidence relied upon and specify in detail the reasons for the decision. (§ 5908.5.) This requirement allows meaningful judicial review of the decision.
(Patterson v. Workers’ Comp. Appeals Bd.
(1975)
It has been held that whether an issue may later become moot after a full determination of benefits does not determine the availability of review under the statutory scheme. (See
Department of Justice v. Workers’ Comp. Appeals Bd.
(1989)
Echoing
Safeway,
we point out that the Courts of Appeal are not required to hear the merits of every petition presented under section 5950; whether to grant a petition for writ of review remains discretionary even if the Board order in question is final. (See
Safeway, supra,
The WCAB obviously agreed the WCJ’s order was final for purposes of section 5900, because it granted Industrial’s petition for reconsideration; had the order not been final, the WCAB should not have agreed to reconsider.
See footnote, ante, page 1068.
