Larry Mallory — ADJ9485144

Applicant Larry Mallory, a former professional athlete for the San Francisco 49ers, filed a cumulative trauma claim initially against Home Insurance (in liquidation, defended by CIGA), but discovery revealed the correct injury period was August 15-24, 1979, when Zenith Insurance was the carrier. The application was amended accordingly, but CIGA was never dismissed as a party. After applicant settled by Compromise and Release with Zenith, CIGA sought reimbursement of $33,872.95 for medical-legal and adjustment expenses it incurred. The WCJ ordered Zenith to reimburse CIGA based on the equitable doctrine of unjust enrichment, since Zenith used CIGA's discovery without objection. The Appeals Board affirmed, rejecting Zenith's standing arguments and holding that the WCAB has broad equitable powers to order reimbursement to CIGA from the solvent carrier that should have borne the costs.