eBlast: Lien Activation Fee 
I njunction Lifted

          June 30, 2015      

Lien Activation Fee Injunction Lifted


Monday, June 29, the federal Ninth Circuit Court of Appeals overturned the district court's injunction in Angelotti v. Baker that halted the collection of lien activation fees mandated by Senate Bill 863 in 2012.  The California Society of Industrial Medicine & Surgery (CSIMS) filed an amicus curiae brief in support of the injunction.  The decision is a disappointment and a setback for many lien claimants.

You can read the appellate decision here .  You can read the WorkCompCentral.com article on the ruling here.

The decision is not particularly well-written and contains at least one factual error.  Whether this is sufficient to cause the court to reconsider its decision remains to be seen.  In addition, the court did not provide any guidance on the future of the activation fee and the status of any unresolved liens for which the activation fee was not paid.

Many questions remain unanswered at this time.  The litigation team is studying the decision and will be conferring with the plaintiffs as to the next moves.  At this point in time, the best posture is to hang tight and don't make any hasty decisions until the dust settles in a few weeks.
We will continue to monitor developments and keep members informed.  Thank you for your understanding.