All of you undoubtedly heard, on June 29, 2015, the U.S. 9th Circuit Court of Appeals affirmed the decision of the U.S. District Court for Central California in the Angelotti case which held that the collection of lien fees is not an improper government taking of private property or that it is a violation of the due process clause. Those of us on the defense side of workers' compensation fully expected to hear that lien fees would once again be collected and that a slew of liens would be dismissed for a failure to file such fees.
Well, the fight is apparently not over. The plaintiffs in Angelotti filed a timely petition for a rehearing and on August 5, 2015. The U.S. 9th Circuit Court of Appeals ordered the State to reply to the petition within 21 days. Until the appellate court makes a decision on the petition for rehearing, the 2013 injunction against the collection of lien fees mandated by SB 863 remains in effect.
We will advise all of you once we hear further word on this issue and we expect something very soon.