Labor Code 5710 fees (California)

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Re: Labor Code 5710 fees (California)

Postby jpod on Wed Jun 28, 2017 2:38 pm

I do admit the list seems to have only medical related expenses though...
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Re: Labor Code 5710 fees (California)

Postby LawAdvocate on Thu Jun 29, 2017 7:32 am

It is a cost.... and the State Bar treats it as a fee. If you have been overpaid ANY attorney fees, suggest you refund the difference. Who in their right mind is going to risk their bar card taking that ridiculous position. Give the WCIRB a call, we report it as an allocated expense, not an indemnity benefit or medical benefit due the injured worker.
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Re: Labor Code 5710 fees (California)

Postby vampireinthenight on Thu Jun 29, 2017 9:13 am

I don't see it as a medical-legal expense. It really isn't paid to effectuate distribution of benefits. That said, I have no idea how carriers classify it.

It should be repaid. Of all the reasons against repayment that are typically levied against forcing an IW to immediately repay an over-payment, none are applicable here. It should not be a "gotcha" game. Think about what you encourage otherwise: Chronic underpayment of 5710 fees for fear of an over-payment, with AAs having to work to chase down the rest.
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Re: Labor Code 5710 fees (California)

Postby ozzie on Thu Jun 29, 2017 3:05 pm

It doesn't make a "hill of beans" as grannie used to say, what account the IC or PSI pays the money from or what the Labor Code calls.

The AA submitted the matter to a WCJ, the WCJ ruled, and the only remedy is to file a recon - unless the AA wants to try to get before the WCJ, NOT ON AN EX PARTE basis, and seek to have the Order changed.

If not, an order is an order, period. This is a legal arena, a legal order was obtained, and the parties have to abide by that order or take the usual steps.

Since the 5710 fee was overpaid on no fault of the defendant - they simply accepted the overcharged bill of the attorney - any court in this country would compel the AA to pay back the money, especially if an order was issued.
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Re: Labor Code 5710 fees (California)

Postby samcat on Fri Jun 30, 2017 4:28 am

The last response from Ozzie is spot on.
In regard to the issue of what the payment is considered to be, the Unit Statistical Plan of the Workers Compensation Insurance Rating Bureau (WCIRB) mandates that 5710 Fees are to be coded as indemnity. I must admit that I never fully understood why, but if you request a printout of benefits from any insurance company you will find the 5710 fees listed in the indemnity payments, sometimes as part of TTD and sometimes under its own subcategory. This coding has been around for decades.
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Re: Labor Code 5710 fees (California) (California)

Postby jpod on Fri Jun 30, 2017 7:06 am

Our 5710 fees fall into the indemnity bucket but Lawadvocate got me thinking if that was right. So thanks SamCat for that clarification.

I seem to recall back when there were dueling Med-legals that only the applicant med-legals were coded in either the medical or indemnity bucket (I think the latter). Defense med-legals were coded to allocated expense. The logic behind that distinction I thought was applicant's med-legal costs were a WC benefit but defense med-legal costs were part of administering the claim.

Based on that logic I agree with SamCat's comment about not understanding the why. I guess the logic is 5710 fees are paid as a "benefit" to the injured worker who is being deposed. It is not that far a stretch to argue the applicant, during a depo, is trying to "prove" through testimony that the claim is valid.
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Re: Labor Code 5710 fees (California)

Postby LawAdvocate on Fri Jun 30, 2017 12:01 pm

I have worked at a number of insurance companies lately and no, the 5710 fees are NOT paid from the indemnity bucket. Disagree. They are paid as allocated expenses.
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Re: Labor Code 5710 fees (California)

Postby chirple on Sat Jul 01, 2017 8:35 pm

There's a lot of chatter about the Order, what did the Petition ask for?

The petition must describe the services rendered, deop xx/xxx/2017, 3 hrs, $300/hr = $1,200. ORDER: $1,200. Defendant has paid $2,000 - a/a needs to refund.

The order is not stand alone, you must look at the petition. So, what did the petition ask for?
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Re: Labor Code 5710 fees (California)

Postby lacompfun on Mon Jul 31, 2017 3:16 pm

The petition itemized services rendered ( preparation, deposition time, travel etc.) which came out to $ 1,200.
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Re: Labor Code 5710 fees (California)

Postby steve appell on Mon Jul 31, 2017 3:30 pm

As I previously posted at the start of this thread, the $1200 would be owed in full ...... IF ....... the $2000 previously paid was for another depo date.
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