The California Department of Insurance (CDI) just issued a ruling that is expected to speed up the resolution of many cases currently against Applied Underwriters. These cases address the same issues that the CDI had ruled on more than a year ago, which left in place the precedential decision in the Shasta Linen case and ended the dispute over the legality of Applied Underwriter’s EquityComp program and its associated unfiled side agreements (RPAs).
RPNA’s Nick Roxborough, who is representing Platinum Security in one such case, said in a recent Workers’ Comp Executive article, “As much as Applied would love to burden every one of its former insureds with a week-long trial and re-litigating everything a second time, the judge is having none of it.”
Much of the delay in these cases has been attributed to litigation tactics employed by Applied Underwriters, who have done everything in their power to delay proceedings and increases costs for former insureds, according to the article.
Roxborough has a history fighting Applied Underwriters. It was his case (Luxor Cabs v. Applied Underwriters Captive Risk Assurance Company) and the precedential decision in Shasta Linen Supply, Inc. v. Applied Underwriters, Inc., that prompted the CDI to hold Applied Underwriters accountable for its unlawful practices and comply with well recognized state filing requirements.
The order just issued by the DOI’s chief administrative law judge prevents Applied Underwriters—in current cases over the same or ‘substantially similar’ RPAs as in Shasta Linen—from re-litigating the facts, findings, and legal conclusions arising from the precedential decision.
Roxborough notes, “Basically, Judge Rosi sees no point to re-litigate issues that have already been decided. This is quite an extensive order. As a result of this Order, we expect Platinum’s trial, and all other similarly situated employers who have trials at the DOI, to be shortened, focused and more cost-effective for the employer.”
Click here to read the WCE article titled “CDI Bars Applied Underwriters’ From Re-Litigating Issues.”
For more information about Applied Underwriters’ EquityComp program or other complex workers’ compensation issues, please contact Nick Roxborough at (818) 992-9999.
