Ana Villanueva

Lien claimant Firstline Health, Inc. sought reconsideration of a WCJ's Findings of Fact and Order that stayed its lien under Labor Code section 4615 based on the finding that criminally charged providers Munir Uwaydah, M.D., and Paul Turley controlled Firstline within the meaning of section 139.21(a)(3). The WCJ relied primarily on the 'Factual Statement of Paul Turley' (Def. Exh. C), a sworn declaration establishing that Uwaydah exercised absolute de facto ownership and control over Firstline despite using others—including non-defendant Dr. David Johnson—as nominal owners to hide his involvement. The Appeals Board, in a significant panel decision, held that 'control' under section 139.21(a)(3) may be established through de facto ownership or control consistent with the rights and duties of an officer or director, not merely formal corporate documentation. Although the Board agreed the Turley Statement established prima facie grounds for a stay, it found lien claimant was denied due process because the statement was served only the day before trial, depriving Firstline of a fair opportunity to rebut it. The Board granted reconsideration, rescinded the F&O, and returned the case to the trial level for further proceedings.