CIGA Sent Packing In Workers’ Compensation Case.

Applicant in a Workers’ Compensation action was on the payroll of a company, but was working as a personal assistant for the president of the company.  The company had one insurer and the president of the company had homeowner’s insurance with another insurer. Of course, there were arguments about who employed her, but the parties were able to enter into a joint stipulation, with the company’s insurer to administer all benefits; the president’s homeowner’s insurer was to pay 25 percent of all benefits. After the settlement, the company’s insurer liquidated, and California Insurance Guarantee Association [CIGA] assumed administration of the claim. CIGA argued it should be dismissed since the company’s insurer did not provide workers’ comp coverage for domestic employees, and the Workers’ Compensation Appeals Board [WCAB] permitted CIGA to pursue reimbursement against the president’s homeowner’s insurer. The Court of Appeal annulled the decision of the WCAB, concluding CIGA is barred by principles of res judicata. State Farm General Insurance Company v. Workers’ Compensation Appeals Board, California Insurance Guarantee Association  (Cal. App. Second Dist., Div. 6; July 25, 2013) (As Mod. August 13, 2013) 218 Cal.App.4th 258.