Steve Hoddinott

The Appeals Board issued an en banc decision after granting removal on its own motion in nine consolidated cases involving a fee dispute between current applicants' attorney Patrick C. Gorman and former applicants' attorney Steven D. Riley. The dispute arises from a contract for the sale of Riley's law practice to Gorman, which allegedly provided for a 50/50 split of fees on transferred cases. Gorman seeks disqualification of WCJs in the Redding and Eureka offices, alleging they approved attorney's fees where Riley failed to file a proper disclosure under Labor Code section 4906, while Riley filed attorney's fee liens claiming Gorman breached the fee-splitting contract. The Board consolidated the cases for the limited purpose of deciding attorney's fees and disqualification issues and ordered the attorneys to meet and confer and submit supplemental verified pleadings addressing resolution options, jurisdiction, and the validity of the sale contract. No hearing on the merits has occurred and the matter remains pending the supplemental briefing.