Legal Question in Workers Comp in California

10 % late penalty

My $50,000 w/c settlement was post dated 4 days after the 25 days allowed.

It put me in a bad position,I had purchased a $24,500 car,cash 2 days before money was due, I told car dealer I would bring cash within a few days,and drove home the car,

needless to say they called every other day,saying ''where's the money'', I had to stall

for 1 1/2 weeks. Labor Code 5814 states I'm due a 10% penalty ($5000) if later than

25 days. Is there ANY reason why they would not have to pay this? They would like to

negotiate the fee. I would like them to pay me the whole amt. Do insurance co. make

a habit of paying late because no one goes after the late fee? Are there any stats

to tell me the % of claims that get the 10% if I take it in front of the w/c appeals board? The paper work has already been filed. Thank you very much for your time

and information

Asked on 3/19/01, 12:07 am

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1 Answer from Attorneys

Laurie Allread Law Offices of Laurie Allread

Re: 10 % late penalty

Yes, you are correct the insurance company probably owes you a 10% penalty. However, there are a few exceptions. It is common for the insurance companies to attempt to settle the claim for less than the potential value.

Laurie Allread

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Answered on 5/08/01, 5:22 pm


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