Montelongo, Pedro

Applicant Pedro Montelongo, injured while working a trenching job, sought sanctions and costs under Labor Code section 5813 against his employer Manuel Cuevas/MC Roofing after Cuevas gave knowingly false testimony at trial denying he had hired or paid the applicant. The WCJ awarded sanctions and costs against Cuevas and MC Roofing, but declined to hold State Compensation Insurance Fund (SCIF) financially liable for those sanctions, having previously found SCIF did not act in bad faith. On reconsideration, the WCAB adopted the WCJ's report, amending the cost award to $12,375.00 (33 hours at $375/hour) reflecting only the litigation directly caused by Cuevas's bad-faith conduct, and otherwise affirmed. The Board held that Insurance Code section 533's implied exclusion for willful acts barred shifting Cuevas's sanction liability to his insurer SCIF.