dealing with liens under SB 863

Week of May 27, 2013

We are now four months into SB 863 and no doubt the changes under it are beginning to take shape.

The most publicized area of course is liens.

For liens filed on or after January 1, 2013, most lien representatives for qualified liens must now file a $150.00 fee, and show proof of it to the opposing side. For liens filed on or before January 1, 2013, the lien representative must show proof that s/he has filed an activation fee of $100.00.

The activation fee must be paid and filed before the hearing starts (not when the hearing is called) or else lien must be dismissed with prejudice. Figueroa v. BC Doering (ADJ 3274228) [Significant Panel Decision]; Dismissal is not discretionary – it’s required by statute. Villanueva v. Tech Data Product Mgt. 2013 Cal. Wrk. Comp. P.D. LEXIS (2013)

Claims and defendant in general need to still deal with and negotiate, where appropriate, with lien claimants prior to any hearing.

But a defendant would do well to keep in mind the following:

A Declaration of Readiness to Proceed cannot be filed for a lien until the underlying case has been resolved or where the applicant elects to not pursue case. [Labor Code section 4903.6(c)]

SOL: for services rendered before July 1, 2013 there is a 3-year statute of limitations from date services provided; for services rendered after July 1, 2013 the SOL is 18 months. [Labor Code section 4903.5(a)]

All liens will be dismissed by operation of law if the activation fee is not paid by Jan. 1, 2014.

ACS, LLP would certainly like to hear from you at jshiu@acs-lawfirm.com.

Lien Regulations (2012)

Week of August 6, 2012

For the text of the new regulations, please click here.

ARTICLES

Let the Claims Begin: The First 90-Days
The first ninety days of a claim are critical for establishing the course of the entire case.

Detours on Your Road to Closure: The New QME Regulations
Observations and best practices for the new QME Regulations, with additional resources and links.

NEWSLETTERS

March 2010: Ogivlie