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$1M Verdict Against LAPD for FEHA Violations Affirmed

Vincent Albano joined the Los Angeles Police Department in 1997. He developed chronic fatigue syndrome caused by a Coxsackie B4 virus in 2003, leading to severe fatigue, insomnia, and body aches. In 2004, he took medical leave, returned with restrictions for “desk duties/low stress” and “day shifts only,” and was assigned to the detectives’ desk at Harbor Division, where he worked from 2004 to 2018 with positive performance reviews.

In 2018, despite plans to transition Albano to the Property Disposition Coordinator role, which suited his medical restrictions, the LAPD reassigned him to a night shift patrol desk position, violating his restrictions. This decision followed a meeting with Teresa Chin, who inquired about his condition but did not discuss accommodations or inform him of the reassignment. The new captain, Greg McManus, reportedly believed Albano was faking his illness and eliminated the detectives’ desk position.

No further interactive process occurred to address Albano’s restrictions or explore alternative accommodations, despite his long-standing medical documentation and prior engagement with the department.

The reassignment exacerbated Albano’s symptoms, causing severe hypertension, chronic fatigue flare-ups, and emotional distress, leading to medical leave in December 2018. Feeling targeted and unable to work night shifts, Albano retired in June 2019 after 21.5 years of service, incurring financial hardship due to a reduced pension and medical subsidy.

He filed a lawsuit in 2020, alleging FEHA violations. At trial, the jury rejected the failure-to-accommodate claim but found the City liable for failing to engage in the interactive process, awarding Albano $700,000 in past noneconomic damages and $300,000 in future noneconomic damages for physical pain, emotional distress, and loss of identity.

The City’s motion for a new trial was denied, and the Court of Appeal affirmed the judgment, finding substantial evidence supported the jury’s verdict and damages award in the unpublished case of Albano v. City of Los Angeles – B329165 (April 2025).

On appeal, the City of Los Angeles raised two primary arguments challenging the jury’s verdict and damages award in Vincent Albano’s case.

The City contended that substantial evidence did not support the jury’s finding that it failed to engage in the interactive process under the Fair Employment and Housing Act (FEHA). Specifically, the City argued that Albano failed to initiate the interactive process after learning of his reassignment to the night shift patrol desk position in December 2018, asserting that he bore the burden of reinitiating the process. Albano’s medical leave starting December 11, 2018, halted the interactive process because LAPD policy prohibited engaging in the process until he returned to work.

It also argued that Albano could not prevail because he failed to identify a reasonable accommodation that would have been available during the interactive process. The jury’s verdict was inconsistent, as the finding that the City failed to engage in the interactive process could not be reconciled with the jury’s finding that the City did not fail to provide a reasonable accommodation. (Note: This argument was referenced in the trial court motion but not developed in the City’s opening brief on appeal, leading the court to consider it abandoned or forfeited.)

In its second primary argument the City claimed that the jury’s award of $700,000 in past noneconomic damages and $300,000 in future noneconomic damages was excessive and not supported by substantial evidence.

The Court of Appeal rejected these arguments, finding substantial evidence supported both the jury’s finding of liability for failing to engage in the interactive process and the damages award, and that the award did not shock the conscience or suggest passion, prejudice, or corruption by the jury.

Major TPA Faces Challenge by Excess Carrier After $34.5M Verdict

Braulio Ruvalcaba was employed by Santa Cruz City Schools as a custodian. In 2016, he suffered a back injury on the job. Keenan & Associates was the District’s workers’ compensation claims administrator.He returned to work with basic accommodations and was able to perform essential job duties for nine months. However on January 9, 2018 the District terminated his employment.

On March 30, 2020, Ruvalcaba filed his First Amended in Complaint Santa Cruz Superior Court (19-CV-00488) against Santa Cruz City Schools and Keenan and Associates alleging (1) disability discrimination under California Government Code (“Gov. Code”) § 12940(a); (2) failure to accommodate under Gov. Code § 12940(m); (3) failure to engage in a good-faith interactive process under Gov. Code § 12940(n); (4) failure to prevent discrimination under Gov. Code § 12940(k) (against the District only); and (5) wrongful termination in violation of public policy.

The plaintiff alleged that Keenan provided misleading information to the District, leading to the mistaken belief that Ruvalcaba was too injured to continue working. Specifically Keenan allegedly instructed the District to disregard medical information not provided by Keenan itself. And Keenan allegedly withheld medical reports that would have shown Ruvalcaba’s ability to perform his job, even without accommodations. This conduct was claimed to have aided, abetted, incited, coerced, or compelled the District’s failure to accommodate and wrongful termination.

According to media information, Keenan conceded that it failed to transmit accurate medical information to the District, it claimed these were innocent mistakes and oversights rather than intentional efforts to discriminate against plaintiff or get him fired. Keenan claimed that the District was solely responsible for the decision to terminate plaintiff and its refusal to rehire him, and that it was not appropriate for the District to blame Keenan for those decisions.

The jury trial lasted 17 days. They returned verdicts against Keenan on May 23 and May 24, 2022. The verdict against Keenan totaled $6,908,000 for compensatory itemized damages related to emotional distress and $27,600,000 in punitive damages.The total verdict amounted to $34,508,000 against Keenan, with the District also liable for portions of the noneconomic damages.

AP Keenan is a division of Assured Partners, Inc., the eleventh largest insurance broker in the United States and a company with more than $1.6 billion in annual revenues according to its own website. Ironshore Indemnity issued Excess Financial Institutions Professional Liability policy to Assured Partners, for the policy period October 1, 2019 to October 1, 2020. It followed Insurance Agents and Brokers Professional Liability Policy issued by Allied World Insurance Company (“Allied”), for the policy period October 1, 2019 to October 1, 2020, with limits of $15,000,000. The MAIC Policy provides excess coverage over the followed policy with an aggregate limit in the amount of $10,000,000 excess of $15,000,000. The Ironshore Indemnity Policy provides an aggregate limit of $10,000,000 excess of the total $25,000,000 limits of the Followed Policy and the MAIC Policy.

Ironshore is a subsidiary of Liberty Mutual Insurance Company. Its lawsuit Ironshore Indemnity, Inc. v. Keenan & Associates (Case No. 2:25-cv-03310) was filed on April 15, 2025 in the United States District Court for the Central District of California, and it is a declaratory judgment action asking the court to determine whether it has a duty to defend or indemnify Keenan for the Ruvalcaba judgment.

Ironshore asserts that California Insurance Code Section 533, prohibits insurers from covering losses caused by an insured’s willful acts. The lawsuit points to the Ruvalcaba jury’s findings and answers to questions required for the verdict. And Ironshore claims these findings support that Keenan intentionally conspired with the school district and acted with “willful, malicious, and oppressive” conduct. Ironshore asserts that both the compensatory and punitive damages fell outside its policy’s coverage. The company also noted that its policy followed the terms of the Allied World policy, which excluded amounts uninsurable under applicable law, further reinforcing its stance.

The Ruvalcaba case, and its aftermath, is highly significant to the California workers’ compensation industry. The California Labor Code section 3762, along with related regulations and privacy laws, impose specific restrictions on the release of medical reports by a workers’ compensation claims administrator to the employer involved in the claim. However, these restrictions are nuanced and depend on the context, the purpose of the disclosure, and compliance with privacy laws such as the California Confidentiality of Medical Information Act (CMIA) and federal regulations like the Health Insurance Portability and Accountability Act (HIPAA).

Specifically the claims administrator is authorized to release “Medical information regarding the injury for which workers’ compensation is claimed that is necessary for the employer to have in order for the employer to modify the employee’s work duties.” Otherwise they “are prohibited from disclosing or causing to be disclosed to an employer, any medical information, as defined in Section 56.05 of the Civil Code, about an employee who has filed a workers’ compensation claim.”

In light of the above, some may argue that fine line exists between the juxtaposition of what a claims administrator must release to avoid liability such as what happened in the Ruvalcaba case, or legal liability for disclosing what might be argued as protected medical information that should not have been disclosed. And there seems to be little guidance on use on a case by case basis, especially in cases that contain perhaps hundreds of pages of narrative medical information.

39 State AGs Ask Congress to End PBM Pharmacy Ownership

The California Attorney General along with 38 attorneys generals, which includes those representing United States territories and the District of Columbia, urge Congress to pass an act prohibiting pharmacy benefit managers, their parent companies or affiliates from owning or operating pharmacies, according to an April 14 letter to Congress.

According to this letter, “PBMs have overtaken the market and now wield outsized power to reap massive profits at the expense of consumers. The rise of PBMs as middlemen in the prescription drug market has resulted in patients facing fewer choices, lower quality care, and higher prices.3 PBMs’ use of affiliated pharmacies—pharmacies owned by either the PBM itself or the PBM’s parent company—has exacerbated the problem of manipulated prices and unavailability of certain prescription medications.”

Over the past few decades, horizontal consolidation and vertical integration have transformed PBMs from useful administrative service providers into market-dominating behemoths that control the industry. The three largest PBMs process 80% of the nation’s prescriptions and bring in 70% of the specialty drug revenue. Furthermore, these same PBMs, along with the next largest three, are vertically integrated both upstream and down. Each of the top six PBMs operate their own affiliated pharmacies, while five of the top six are also a part of parent conglomerates that operate insurance companies and health care clinics.”

The PBMs then use their place as middlemen to exert this power in ways that harm independent pharmacies, forcing these small businesses to accept contractual terms that are ‘confusing, unfair, arbitrary, and harmful.’ PBMs’ position further allows and incentivizes them to provide their affiliated pharmacies with more favorable contract terms, steer consumers away from independent pharmacies to their own affiliated pharmacies, and otherwise engage in tactics aimed at forcing their competition out of business. Over the course of the last decade, approximately ten percent of rural independent pharmacies in the United States have closed.”

“The control of the pharmaceutical ecosystem by PBMs has resulted in decreased access, affordability, and choice for many Americans seeking prescription healthcare. Congressional action is warranted to restore a free market and protect consumers and small businesses.”

As self-designated middlemen, PBMs should not be permitted to own or operate affiliated pharmacies. Further, they should not be able to skirt such a prohibition by having a parent company or other affiliated healthcare conglomerate own a pharmacy. PBMs should be prohibited from having direct ownership ties to the parties they purport to be bridging. This requirement would allow pharmacies to compete on fair terms and create a market that is more accessible to consumers.”

April 14, 2025 – News Podcast


Rene Thomas Folse, JD, Ph.D. is the host for this edition which reports on the following news stories: WCAB Applies Amended L.C. 4707(c) Retroactively. Filing Claim in Employers’ Bankruptcy Not Required for UEBTF Benefits. L.A. Judge Disqualified Post Trial and $10M FEHA Verdict Reversed. Critic of Medi-Cal Crisis Launches SoCal Fraud and Corruption Task Force. DWC Releases 2024 Independent Medical Review (IMR) Report. Novo Nordisk and Others Challenge Medicare Drug Price Negotiations. ASHP Reports AI Helps Pharmacists Streamline Routine Tasks. Developments in Orthopedic Surgical and Non-Surgical Care.

Studies Show Surgeons Continue to Leave Materials in Patients

A Hearst Newspapers investigation, published on April 16, 2025, revealed that surgeons across the United States have inadvertently left surgical materials – such as sponges, wires, needles, drill bits, instruments, and broken tool fragments – inside patients’ bodies over the past decade. The full article is available on Hearst Newspapers’ platforms, such as the San Francisco Chronicle or Houston Chronicle

These incidents, known as retained surgical items (RSIs) or “never events,” are rare but can have severe consequences, including infections, organ damage, additional surgeries, and, in extreme cases, death. The investigation, conducted by reporters Emilie Munson and Leila Merrill, highlights the persistence of these medical errors despite protocols designed to prevent them, such as mandatory counting of surgical items and the use of radiopaque sponges visible on X-rays.

While exact numbers vary due to underreporting, studies cited in related sources estimate RSIs occur in approximately 1 in every 5,500 surgical procedures, with around 1,500 cases annually in the U.S. The Hearst investigation emphasizes that these incidents often require additional surgeries, extend hospital stays, and cause significant patient harm, such as infections, abscesses, or organ damage. For example, retained sponges, which account for 48% to 69% of RSIs, can lead to “gossypiboma,” where the body forms a mass around the foreign object, causing pain or complications like fistulas or bowel obstructions.

The investigation notes a range of items left behind, including:

– – Surgical sponges and gauze (most common, often used in large quantities during procedures).
– – Needles, wires, and drill bits.
– – Surgical instruments like clamps or retractors.
– – Broken fragments of tools, such as catheter tips or parts of wire cutters.These items are typically left in the abdomen, pelvis, or chest, but cases have been reported in vaginas, spinal canals, and even brains

The investigation points to human error as a primary cause, often due to:

– – Inaccurate manual counting of surgical items, which can be disrupted by complex procedures, shift changes, or distractions.
– – Poor communication among surgical teams.
– – Complacency or overconfidence in counts reported as correct, even when items are missing.
– – Inadequate documentation or failure to follow protocols like the World Health Organization’s surgical safety checklist.

The investigation references specific cases to illustrate the human toll:

– – A 2021 case where a woman suffered for 18 months after a plastic wound retractor (the size of a dinner plate) was left inside her abdomen following a C-section. An abdominal CT scan eventually
– – A 2018 case in Japan where a woman experienced abdominal bloating for six years due to two gauze sponges left during a C-section, which had adhered to her connective tissue and colon
– – A California man who suffered infections and septic shock from two retained surgical clamps, leading to a stroke.

The investigation underscores systemic challenges, including:

– – Underreporting of RSIs due to inconsistent definitions, varying reporting requirements, and fear of litigation.
– – Limitations of manual counting processes, which are prone to error in high-stress, complex surgeries, especially those involving obese patients or trauma cases requiring numerous instruments
– – Resistance to adopting new technologies, such as RFID-tagged sponges or barcode systems, due to cost or integration challenges, despite their potential to reduce errors.
– – RSIs lead to significant costs for hospitals, with a single case potentially costing up to $600,000 due to corrective surgeries and legal fees. Malpractice claims are common, with a 2003 study noting an average of $52,000 in compensation and legal expenses per case.

Hospitals employ several strategies to prevent RSIs, including:

– – Surgical teams count sponges, instruments, and other items before and after procedures. However, studies show that counts are often recorded as correct even when items are left behind.
– – Sponges and some instruments are embedded with X-ray-detectable materials to aid identification if left inside a patient.
– – The WHO surgical safety checklist and National Safety Standards for Invasive Procedures aim to standardize safety checks, but compliance varies.
– – Systems like ORLocate’s Surgical Counting and Detection System use RFID or barcode technology to track items more accurately, but adoption is not widespread.

Despite these measures, the investigation notes that errors persist due to the complexity of surgical environments, staff fatigue, and organizational pressures, such as high workloads or frequent staff changes during procedures.

The Hearst investigation aligns with prior studies and reports highlighting RSIs as a persistent patient safety issue. For instance, a 2008 study at the Mayo Clinic found RSIs in 1 in 5,500 surgeries, with most counts incorrectly reported as accurate. A 2017 article from the National Center for Biotechnology Information (NCBI) notes that RSIs can be life-threatening, often requiring further operations. The investigation also reflects Hearst Newspapers’ history of award-winning investigative journalism, as seen in their Polk Awards for reporting by the San Antonio Express-News and San Francisco Chronicle.

Discover Magazine on RSIs discusses real-world cases, such as the 2021 C-section retractor case and the 2018 Japanese gauze case, with broader implications. Washington Post on Never Events Reports 4,857 objects left in patients over two decades, with insights into malpractice claims and systemic issues. Times Union on New York Cases details specific RSI incidents, including a surgical sponge missed during a hysterectomy due to incorrect counting. PSNet on RSI Epidemiology offers data from California’s reporting system (2007–2011), noting 58% of RSI cases involved sponges or towels. Minnesota Department of Health reports 270 retained objects since 2003, emphasizing sponges and clamps as common items.

Misdated VA PACT Act Disability Decisions Cost Millions

The PACT Act (Promise to Address Comprehensive Toxics Act of 2022) is a landmark law that expands VA health care and benefits for veterans exposed to toxic substances, such as burn pits, Agent Orange, and radiation. Signed into law on August 10, 2022, it is considered one of the largest expansions of veteran benefits in U.S. history.

However a sampling of disability claims filed under the 2022 PACT Act found that roughly one-quarter listed incorrect start dates, resulting in improper payouts of about $6.8 million to some veterans and shortchanging an estimated 2,300 others, the Department of Veterans Affairs’ internal watchdog found.

In a report released this month, the Veterans Affairs Officer of Inspector General concluded that the legislation’s complexity, along with inadequate guidance from the Veterans Benefits Administration, led claims adjudicators to assign the wrong “effective date” to an estimated 26,000 claims, resulting in overpayment by the government in the first year of the legislation.

An estimated 2,300 additional claims had erroneous dates — including some that should have been made retroactive to a date before the law was signed, increasing compensation for veterans — but the watchdog agency said it “could not determine their monetary impact” on any affected veterans.

According to the VA, it has received 2.44 million PACT Act-related claims since the law went into effect. It has adjudicated 2.14 million claims and approved 1.59 million and, as of May 2024, had awarded $5.7 billion in related benefits to veterans or survivors. The VA OIG estimated that the VA will have made an estimated $20.4 million in improper payments in the first three years of the law, representing about 0.36% of payouts.

Some veterans who had diagnosed conditions covered by the PACT Act prior to its passage were eligible for retroactive benefits back to their date of diagnosis. After Aug. 10, 2023, any approvals under the act would have the date of application as a start date for benefits or, in the case of intentions filed before that date, to Aug. 10, 2022.

The complexity of determining the correct start date led the VA OIG to review claims for accuracy.

To figure out whether the VA was assigning effective dates correctly, the watchdog examined a statistical sampling of 100 claims filed in the law’s first year. Based on that analysis, the OIG estimated that the VBA assigned an incorrect effective date to roughly 26,100 of 131,000 claims, and it found it likely that an additional 2,300 should have been assigned a date that may have awarded veterans and their families more money.

“Errors that had the potential to affect veterans’ compensation benefits payments occurred when claims processors decided claims before taking all the necessary steps, such as gathering additional evidence, to determine whether a more advantageous effective date applied,” wrote Larry Reinkemeyer, the VA’s assistant inspector general for audits and evaluations, in the report. “As a result, some veterans did not receive their correct benefit payments.”

The OIG found that mistakes were made because claims processors were not adequately prepared to determine correct effective dates. The team added that the automated tools created to provide assistance in determining a date “were unreliable.” The team also noted that claims processors had made the VBA aware of the complexities, and the administration had taken steps to include updated training and conduct reviews to ensure accuracy.

WCAB Denied Commutation of 76% PD Award to Pay Bills

Chester Taylor worked as a kosher food manager/inmate laborer for State of California, Department of Corrections Inmate Claims when he sustained an industrial injury to his bilateral arms on January 20, 2017.

The injury was resolved through a Stipulated Findings & Award on April 6, 2024, which provided him with a 76% permanent disability rating. The defendant, State Compensation Insurance Fund (SCIF), paid permanent disability benefits at a weekly rate of $160.00, totaling $49,406.39 through December 13, 2024.

Mr. Taylor filed a petition to commute his remaining permanent disability benefits into a lump sum, covering the period from December 13, 2024, for the remainder of his life expectancy.

At trial, he testified that his monthly income (from Social Security, workers’ compensation, and SNAP benefits) totaled $2,428.00, while his expenses (rent, food, medical copays, and dental expenses) amounted to $1,251.00. He claimed to be in arrears by $300.00 to $600.00 per month, borrowing approximately $600.00 per week from his daughter. However, he provided no documentary evidence to substantiate these figures.

The presiding Workers’ Compensation Administrative Law Judge (PWCJ) denied Mr. Taylor’s petition, finding that he failed to meet the burden of proof under Labor Code § 5100(a). The lack of documentary evidence supporting his financial claims and the unclear calculations of his expenses were critical factors.

The WCAB denied reconsideration in the panel decision of Chester Taylor vs. State of California, Department of Corrections Inmate Claims – ADJ13319691 (April 2025).

Under Labor Code § 5100(a), commutation of benefits is allowed if it is “necessary for the protection of the person entitled thereto, or for the best interest of the applicant.” Additionally, § 5100(b) requires that commutation must avoid inequity and not cause undue expense or hardship to the applicant.

The Workers’ Compensation Appeals Board (WCAB) has discretion to grant or deny commutation, and the applicant bears the burden of proving the necessity of commutation. (Hulse v. Workers’ Comp. Appeals Bd. (1976) 63 Cal.App.3d 221, 226 [41 Cal.Comp.Cases 691].)

The PWCJ also noted that commuting the benefits could potentially cause undue hardship, as Mr. Taylor’s current income, including permanent disability payments, was insufficient to cover his expenses. Commuting the benefits would reduce or eliminate this income stream, potentially exacerbating his financial difficulties.

The WCAB, in its Opinion and Order dated April 8, 2025, adopted and incorporated the PWCJ’s report and denied the Petition for Reconsideration, affirming the PWCJ’sdenial of commutation.

The WCAB noted that Mr. Taylor remains free to file a new petition for commutation if he can provide adequate evidence meeting the requirements of Labor Code § 5100(a) and (b).

Insurance Agent and Son Charged With $1.4M Commission Fraud

The California Department of Insurance announced that five individuals, including former insurance agents, have been charged in a large-scale insurance fraud scheme involving misrepresented life insurance policies that resulted in fraudulent commissions totaling over $1.4 million.

Daniel Jon Carpenter, 62, of Morgan Hill, was arraigned on felony charges of insurance fraud, grand theft, and identity theft. Carpenter, a former insurance agent, allegedly orchestrated the fraudulent scheme alongside four co-defendants.

– – Natorae Marie Wettstein, 56, of Rancho Mirage, was arraigned on felony charges of insurance fraud and grand theft.
– – Blake John Carpenter, 27, of San Jose, the son of Daniel Jon Carpenter, was arraigned on felony charges of insurance fraud and grand theft.
– – Noah Maxwell Kuh, 26, of San Jose, was arraigned on a felony charge of insurance fraud.
– – Alejandro Carlos, 25, of Gilroy, remains a fugitive at large and is wanted on felony charges of insurance fraud and grand theft.

The Department of Insurance launched its investigation after receiving a complaint from a consumer alleging forgery and insurance fraud linked to life insurance policies sold by Daniel Carpenter.

The investigation revealed that Carpenter, in conjunction with Wettstein, Blake Carpenter, Carlos, and Kuh, misrepresented life insurance policy terms to California consumers while falsifying agent information on policy applications submitted to multiple insurance companies. This deceptive scheme allowed them to collect unearned commissions from four insurance carriers between 2017 and 2023.

In total, the defendants fraudulently obtained over $1.4 million in commissions by manipulating over $2 million in insurance premiums from 28 California consumers. The California Department of Insurance has successfully assisted in recovering over $2 million for the affected victims.

Carpenter, Wettstein, Blake Carpenter, and Kuh are scheduled to return to court on April 25, 2025. Anyone with information on Carlos’ whereabouts is asked to contact the Department at 707-751-2000. The Santa Clara County District Attorney’s Office is prosecuting the case.

According to Santa Clara County Superior Court records one client, Alex Lowry, sued Carpenter and Wettstein in 2021, alleging Carpenter forged his signature to purchase two $7.5 million life insurance policies, with Wettstein listed as the agent due to Carpenter’s lack of authorization.

Wettstein claimed Lowry was repaid $190,000 in premiums and knowingly held the policies, while Carpenter denied the allegations but offered to settle. Lowry dropped the case in August 2024 for unclear reasons.

Exclusive Remedy Applies if Contracting for 52+ Hour Job

Hugo Osoy hired Pablo Arredondo Padron in 2019 to install two skylights in Osoy’s home, a project expected to take 10–12 days (80–96 hours). Padron, who lacked a contractor’s license, agreed to the job for $4,000.

On July 31, 2019, while working, Padron fell from a ladder held by Osoy, suffering serious injuries after less than 52 hours of work. Padron lost consciousness and could not recall the cause of the fall. He was unable to continue the project and was paid $1,000 for his work.

On May 21, 2020, Padron sued Osoy in Los Angeles Superior Court for negligence, premises liability, and labor code violations, alleging Osoy provided a defective ladder and failed to ensure safety.

Osoy moved for summary judgment, arguing workers’ compensation was Padron’s exclusive remedy, as he had a homeowners’ insurance policy with workers’ compensation coverage from the Interinsurance Exchange of the Automobile Club (AAA)

It was undisputed that Padron and Osoy contracted for Padron to perform residential work exceeding 52 hours (specifically, 80–96 hours for the skylight installation). The trial court concluded that the exclusion in Labor Code section 3352 (a)(8)(A) which applies to employment “was, or was contracted to be, for less than 52 hours” – did not apply because the contracted duration surpassed the 52-hour threshold, – regardless of Padron’s injury occurring after fewer hours.The trial court granted summary judgment for Osoy, and Padron appealed.

The California Court of Appeal affirmed a summary judgment in favor of defendant Hugo Osoy in the published case of Padron v. Osoy – B333512 (April 2025) – holding that plaintiff Pablo Padron’s exclusive remedy for injuries sustained while working on Osoy’s home was through workers’ compensation, not a civil lawsuit.

The central dispute involved interpreting Labor Code section 3352 (a)(8)(A), which excludes workers from workers’ compensation coverage if their employment “was, or was contracted to be, for less than 52 hours” in the 90 days before the injury. Padron argued that because he worked less than 52 hours before his injury, he was excluded from workers’ compensation and could sue in court.

The Court of Appeal disagreed. “When employment is contracted to be for more than 52 hours, the exclusion in section 3352(a)(8)(A) does not turn on the fortuity of how many hours into that employment a worker is when they are injured. Rather, section 3352(a)(8)(A) excludes from workers’ compensation (1) employment contracted to be for less than 52 hours, and (2) employment for less than 52 hours where no time period was contracted for.”

“Because Padron contracted to do more than 52 hours of work, section 3352(a)(8)(A) does not exclude him from workers’ compensation coverage regardless of his injury occurring in less than 52 hours of work.”

Padron also contends the trial court erred in granting summary judgment because there is a triable issue whether Osoy should be estopped from relying on the exclusivity defense. As the factual predicate for this estoppel claim, Padron relies on evidence that Osoy and his insurer, a homeowners’ insurance policy from the Interinsurance Exchange of the Automobile Club (AAA), which included workers’ compensation coverage, delayed informing Padron that he was entitled to workers’ compensation benefits and providing him with a claim form.

“Despite raising a claim of estoppel, Padron did not adduce any evidence to show that Osoy or AAA made any factual misrepresentations regarding Padron’s eligibility for workers’ compensation coverage. Even if Osoy and AAA remained silent as to whether Padron was eligible for workers’ compensation benefits, such inaction does not show a triable issue of affirmative conduct intended to convey facts to Padron regarding potential workers’ compensation coverage.”

Accounting Chief at Girardi Keese Law Firm to Serve 10 Years

The former longtime head of the accounting department at the now-shuttered downtown Los Angeles plaintiffs’ personal injury law firm Girardi Keese was sentenced to 121 months in federal prison for enabling the embezzlement of millions of dollars from the firm’s injured clients and for embezzling money from the law firm itself.

Christopher Kazuo Kamon, 51, formerly of Encino and Palos Verdes and who was residing in The Bahamas at the time of his November 2022 arrest, was sentenced by United States District Judge Josephine L. Staton. Judge Staton also ordered Kamon to pay $8,903,324 in restitution.

At today’s hearing, Judge Staton remarked on Kamon’s assistance with the ongoing fraud against Girardi Keese clients, noting he helped build a “web of deceit and manipulation.”

Kamon pleaded guilty in October 2024 to two counts of wire fraud.

From 2004 until December 2020, Kamon was the head of the accounting department at Girardi Keese, a plaintiffs’ personal injury law firm based in downtown Los Angeles. In this position, Kamon worked closely with co-defendant Thomas Vincent Girardi, 85, formerly a resident of Pasadena but who now resides in Seal Beach, as well as other senior lawyers at the law firm.

In December 2020, Girardi Keese’s creditors forced the once-prominent law firm into bankruptcy proceedings. The law firm dissolved in January 2021 and the State Bar of California disbarred Girardi in July 2022. On August 27, a federal jury in Los Angeles found Girardi guilty of four counts of wire fraud. Girardi’s sentencing hearing is expected to occur in the coming months.

In addition to supervising the law firm’s accounting department, Kamon oversaw facilitating payment of the law firm’s expenses. Kamon had a duty to keep accurate books and records of Girardi Keese, including accounting of money held in its attorney-client trust accounts. Typically, Girardi determined and directed which clients would be paid, how much they would be paid, when they would be paid, and signed all outgoing checks to clients. Kamon had signatory authority on additional Girardi Keese operating accounts.

From at least 2010 until December 2020, Girardi and Kamon schemed to defraud Girardi Keese clients out of their settlement money, using the misappropriated funds to pay the law firm’s payroll, the law firm’s credit card bills, and to pay Girardi and Kamon’s personal expenses.

Specifically, one Girardi Keese victim-client suffered severe burns all over his body when a natural gas pipeline exploded in San Bruno, California in September 2010. Girardi negotiated a $53 million settlement of the case without the client’s prior approval and told the client the case settled for just over $7 million. Per the terms of the settlement, $25 million was invested into an annuity. The remaining $28 million was wired into a Girardi Keese client trust account in January 2013. Girardi, aided and abetted by Kamon, misappropriated, and embezzled that client’s settlement money and used the funds to pay other Girardi Keese expenses and liabilities unrelated to this client, including payments to other law firm clients whose own settlement funds previously had been misappropriated by Girardi and others.

To prevent the victim from discovering Girardi’s embezzlement, Girardi lied to the client by saying the funds had been transferred into a separate interest-bearing account. In fact, no such transfers had been made and no such interest-bearing account containing these funds existed.

Girardi and Kamon sent lulling payments to the victim as “interest payments” deriving from the purported interest-bearing account. In July 2019, they sent the victim a $2.5 million check, purportedly as disbursement of the victim’s settlement funds. In fact, Girardi and Kamon knew these settlement proceeds belonged to other Girardi Keese clients. Girardi already had spent the victim’s settlement funds through disbursements unrelated to the victim’s case.

In a separate criminal case, Kamon admitted to running a years-long scheme in which he embezzled Girardi Keese funds for his personal enrichment. From at least 2013 to December 2020, Kamon utilized co-schemers to pose as “vendors” who were providing goods and services to the law firm. Kamon caused the supposed vendors to issue fraudulent invoices to Girardi Keese for goods and services that they purportedly provided to the law firm.

Kamon caused Girardi Keese to pay the amounts due on the fraudulent invoices. In fact, the law firm was paying the “vendors” for Kamon’s personal benefit, including for construction projects at his homes in Palos Verdes and Encino.

According to evidence presented at the recent trial of Tom Girardi, part of Kamon’s scheme involved payments to a female companion amounting to hundreds of thousands of dollars, including a monthly stipend of $20,000, out of the Girardi Keese operating accounts despite the woman having no employment relationship with Girardi Keese.

Kamon – along with Girardi and David R. Lira, Girardi’s son-in-law and a former Girardi Keese lawyer – also faces federal fraud charges in Chicago. Trial in that case is scheduled for July 14.

IRS Criminal Investigation and the FBI investigated this matter.