Lopez, Jaime

Defendant Berkshire Hathaway and Hefley Law sought reconsideration of a WCJ's July 31, 2025 Sanctions Order imposing a $250 joint and several sanction for failing to timely serve and file the proof of service for the Minutes of Hearing from the April 28, 2025 lien conference, in alleged violation of WCAB Rule 10629(d). Defendant argued the failure was an inadvertent clerical oversight caused by a high volume of emails and did not constitute bad-faith conduct warranting sanctions. The Appeals Board found that the WCJ improperly relied on defense counsel to serve the notice of hearing when EAMS records showed the WCAB itself had served all parties, including the lien claimant, on May 6, 2025. The Board concluded there was no evidence of willfulness, prejudice, or litigation gamesmanship rising to the level of bad faith required under Labor Code section 5813 and WCAB Rule 10421. The Board granted reconsideration and rescinded the Sanctions Order, while cautioning defendant that recurring failures to timely serve documents and file proofs of service may justify sanctions in the future.