Mendoza, Rene

Applicant's attorney filed nine consolidated Applications naming Great Northern Insurance Company (administered by Chubb) as the carrier for MDRN Staffing Inc. Great Northern denied any coverage, was dismissed without prejudice as a party defendant, and then pursued petitions for costs and sanctions against applicant's attorney for allegedly filing frivolous claims without due diligence. The WCJ found the attorney acted frivolously and ordered him to pay $1,000 in costs and $500 in sanctions per case ($13,500 total) under Labor Code section 5813 and WCAB Rule 10421(b). On reconsideration, the Board vacated the F&O and rescinded the consolidation order, holding that once Great Northern was dismissed it lost standing as a 'defendant' to file a cost petition, that the petition was dismissed by operation of law, that employment/coverage had to be adjudicated first as a threshold jurisdictional matter with proper joinder and notice, and that no notice of intention was issued. The Board granted reconsideration and vacated the entire award.