Magana, Ernesto

Applicant and defendant entered into a Compromise and Release resolving a July 19, 2021 industrial injury, with the Labor Code section 132a claim expressly excluded. Defendant's counsel allegedly e-filed a rejected version of the C&R by administrative mistake, which was approved by OACR on July 20, 2022, and defendant filed a petition to set aside based on mutual mistake while delaying payment until November 28, 2022. The WCJ found defendant's conduct constituted bad faith and awarded section 5814 penalties, interest, and attorney's fees, treating the petition to set aside as effectively adjudicated. The Board granted reconsideration and rescinded the F&A, finding the record inadequate because the merits of the petition to set aside were never set for trial, depriving defendant of due process. The matter was remanded to develop a complete evidentiary record, with the Board also cautioning defense counsel about possible sanctions for misrepresentations.