CA: Employer Obligated to Issue Settlement Payment After Check Forged and Cashed by Third Party

CA: Employer Obligated to Issue Settlement Payment After Check Forged and Cashed by Third Party

Patricia Pineda v. Yaohan USA Corporation

Settlements--Compromise and Release Agreements--Payment of Proceeds--WCAB, affirming WCJ's finding, held that defendant was obligated to pay applicant proceeds of compromise and release even though defendant timely sent settlement check to applicant's attorney for payment to applicant, when applicant never received defendant's check because, after forging applicant's signature, employee of applicant's attorney cashed check without attorney's knowledge, and WCAB found that applicant's attorney, while acting as a conduit by agreeing to forward check to applicant, was not authorized to accept payment on applicant's behalf and did not serve as applicant's agent for purpose of accepting payment. © Copyright 2010 LexisNexis. All rights reserved.

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Source: Calif. Workers’ Compensation Appeals Board

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