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Navigating California Code of Regulations Section 10550: Dismissing Inactive Workers’ Compensation Cases

Posted on by Joseph Yrulegui

In workers’ compensation law, some cases can stall for long periods, either due to inactivity by the applicant or delays in pursuing necessary steps to move the claim forward. To prevent such cases from lingering indefinitely, California Code of Regulations Section 10550 provides a mechanism for dismissing inactive cases after a year of inactivity. This rule benefits employers, claims adjusters, and insurers who seek to avoid unnecessary costs and administrative burdens associated with keeping stagnant cases open.

At Yrulegui & Roberts, we regularly assist our clients with filing Petitions to Dismiss Inactive Cases under Section 10550, ensuring compliance with the procedural requirements and helping resolve cases that no longer show signs of progress.

Overview of California Code of Regulations Section 10550

Section 10550 governs the process for dismissing inactive workers’ compensation cases. If a case has been inactive for one year following the filing of an Application for Adjudication of Claim or after a case has been taken off calendar, it may be dismissed due to lack of prosecution. This can be initiated by an interested party, typically the employer or insurance carrier, or by the Workers’ Compensation Appeals Board (WCAB) itself.

Key Steps for Dismissing an Inactive Case

  1. Assessing Inactivity:
    • A case can be dismissed if no action has been taken within one year after filing the Application for Adjudication of Claim or after the case was taken off calendar. To pursue dismissal, you must confirm that the applicant has made no efforts to activate the case for a hearing during this time.
  2. Sending a Notice Letter:
    • At least 30 days before filing a Petition to Dismiss, the defense must send a letter to the injured worker (the applicant) and, if represented, their attorney. This letter serves as formal notice of the intent to file a Petition to Dismiss Inactive Case unless the applicant objects in writing and provides good cause for why the case should not be dismissed.
    • This letter is a mandatory step under Section 10550(b). The applicant has an opportunity to respond within this 30-day window.
  3. Filing the Petition to Dismiss:
    • If the applicant does not respond or fails to provide sufficient reason to keep the case open, the defendant may file the Petition to Dismiss Inactive Case. The petition must be filed with the WCAB district office that has venue or through the Electronic Adjudication Management System (EAMS), and it must be served on all parties, including lien claimants, as required by Rule 10625.
    • The petition must be titled: “Petition to Dismiss Inactive Case [assigned ADJ number].”
  4. Supporting Documentation:
    • The petition must include:
      • A copy of the notice letter sent to the applicant (required by subdivision (b)).
      • Any written reply or objection from the applicant, if one was received.
  5. WCAB Review and Decision:
    • Once the petition is filed, the WCAB will issue a 10-day notice of intention to dismiss, giving the applicant one last opportunity to object. The dismissal will be entered if no valid objection is raised.
    • If the applicant objects and provides evidence of good cause for the inactivity (such as ongoing medical treatment or pending settlement negotiations), the WCAB may deny the petition and allow the case to remain active.
    • Dismissals cannot be issued with a provision to reverse the dismissal if an objection is filed—meaning once the case is dismissed, it cannot be automatically re-opened unless a valid appeal is made.

Importance of Dismissing Inactive Cases

For employers, claims adjusters, and insurers, dismissing inactive cases is essential for reducing unnecessary legal exposure and costs. When a case lingers without any real movement, it can tie up resources and create ongoing liabilities that could otherwise be closed.

  • Cost Management: Keeping inactive cases open results in ongoing legal expenses and potential exposure to future claims for benefits. Dismissing these cases helps control costs and prevents the accumulation of unnecessary legal and administrative fees.
  • Administrative Efficiency: Dismissing inactive cases helps the WCAB reduce its backlog and focus on cases that are being actively pursued. This creates more efficient handling of claims across the board.

Conclusion

California Code of Regulations Section 10550 provides a clear pathway for dismissing workers’ compensation cases that have been inactive for an extended period. By following the correct procedure—including sending a notice letter and filing a proper petition—employers and claims administrators can reduce their legal exposure and clear stalled cases from the WCAB’s docket.

At Yrulegui & Roberts, we are skilled in handling petitions to dismiss for lack of prosecution and ensuring compliance with all the procedural requirements under Section 10550. If you are facing an inactive case and wish to pursue dismissal, contact us today to discuss how we can assist with your workers’ compensation defense strategy. We handle matters at all California Boards!

Joseph Yrulegui