Fee Compensation for Work in Related Insurance Action No Abuse of Discretion.
Labor Code sections 3706/3709 have a mandatory fee-shifting provision in a case where a judgment is entered in a lawsuit for workplace injury under circumstances where the employer failed to obtain workers compensation insurance.
These special fee-shifting provisions were operative in Lopez v. Delgadillo, Case Nos. A137463/A138246 (1st Dist., Div. 5 Mar. 19, 2014) (unpublished).
Former employee did obtain a verdict for a workers compensation insurance violation as well as for unpaid wages. Then, the lower court awarded plaintiff attorney’s fees under sections 3706/3709, both for work in the actual suit and for work in a prior insurance action.
The fee award held up on appeal. The trial court did have discretion to award fees in a collateral action as long as it was helpful and aided a resolution in the pending case, which happened to be the situation leading to the affirmance of the entire fee award. (Children’s Hosp. & Med. Center v. Bonta, 97 Cal.App.4th 740, 779-780 (2002).)