Sablan, Yolanda

In a consolidated lien proceeding under WCAB Rule 10396 involving alleged fraudulent liens controlled by criminally charged/convicted individuals (Marisa Schermbeck Nelson), the WCJ issued an order appointing SCIF and Travelers as Joint Liaison Counsel based on their having the most lien exposure ($3,597,120.90 across 65 liens for SCIF per the Anti-Fraud Unit). SCIF sought reconsideration arguing it had only 3 viable liens, that it was statutorily created only to defend its own claims, and that appointing it as liaison counsel violated the California Constitution and Insurance Code sections 11770 and 11774. The Board found the petition was skeletal and unsupported by specific record references, and that SCIF improperly tried to litigate lien merits not at issue in the consolidation. The Board reaffirmed its prior November 2024 ruling that the WCAB has jurisdiction to appoint SCIF as liaison counsel, noting SCIF functions like any other insurer and has the same duty to defend against fraudulent liens. The Board denied reconsideration and dismissed the petition for removal.