Sakotas v. Workers' Comp. Appeals Bd.

Decision Date26 April 2000
Docket NumberNo. B128688.,B128688.
Citation95 Cal.Rptr.2d 153,80 Cal.App.4th 262
CourtCalifornia Court of Appeals Court of Appeals
PartiesJanice SAKOTAS, Petitioner, v. WORKERS' COMPENSATION APPEALS BOARD; Motel 6 et al., Respondents.

Rucka, O'Boyle, Lombardo and McKenna, N. Michael Rucka and Patrick O'Shaughnessy, Salinas, California Applicant's Attorney's Association, as Amicus Curiae on behalf of Petitioner.

Grancell, Lebovitz, Stander, Marx and Barnes, Peter R. Nelson, Ventura, Lawrence Kirk, Sacramento, and Norm T. Grancell, Los Angeles, for Respondents Motel 6, Continental Casualty and Scott Wetzel Services.

No appearance for Respondent Workers' Compensation Appeals Board.

COFFEE, J.

INTRODUCTION

In this case Janice Sakotas, a desk clerk and sometimes substitute manager for Motel 6, filed a petition for writ of review alleging that the medical-legal report upon which the Workers' Compensation Appeals Board (WCAB) relied in denying workers' compensation benefits for an alleged psychiatric injury was not substantial evidence. In addition, Sakotas contends the Labor Code section applied by the WCAB to bar benefits violates the California Constitution and equal protection under the law. We conclude that the employer's medical-legal report is consistent with the findings of the workers' compensation judge (WCJ) and constitutes substantial evidence. We further hold that Labor Code section 3208.3, subdivision (b)(1),1 establishing the test of predominance for psychiatric injury claim, is a permissible exercise of power by the Legislature. The petition is denied.

FACTS

Janice Sakotas was hired as a desk clerk by Motel 6 in 1993. Three to four times a year Sakotas was the manager on duty (MOD), from one week to one month at a time. Generally, an MOD looks after the property and employees and handles all the usual daily problems.

Sakotas reportedly had no difficulty doing the work until late 1996 when she was under the supervision of a new manager, Andy Polhill. Apparently, Polhill was responsible for other locations as well. Sakotas claimed Polhill was unavailable to help and she had the MOD responsibilities more often. During these periods there were missing reservations and she was regularly contacted at night.

Although Sakotas was paid more to manage, she told Polhill it was too much for one person. She did the work because she felt responsible and there was no one else. When other employees quit in early 1997, Sakotas filled in, became greatly stressed and symptomatic, sought medical treatment and never returned to work.

Sakotas also had many personal problems. Her father was deceased and had been an alcoholic. Her mother was abusive and they did not get along. Her brother lost his doctor's license because of drugs and alcohol. Her son had been arrested and jailed for various offenses, including drugs and spousal abuse, and was diagnosed a schizophrenic. Her daughter had a child out of wedlock, was abused, attempted suicide and had physical problems.

Sakotas herself had troubled marriages. After her first divorce, her husband's parents gained custody of the children, who had allegedly been mistreated. Her third husband, who had been an alcoholic, died in a boating accident leading to excessive drinking by Sakotas for two years. Sakotas' subsequent boyfriend has been in and out of her life due to drugs. She also had tried drugs, attempted suicide, and filed for bankruptcy.

For evidentiary support of her workers' compensation claim for stress, Sakotas obtained medical-legal reports from Psychiatrist Richard Bell. Dr. Bell described Sakotas' work stress beginning with Polhill's mismanagement and Sakotas' increased workload. In regards to nonindustrial stresses, Dr. Bell reported much of the history of family problems, noting that she was able to cope and continue working.

Dr. Bell also referred to the bankruptcy, but incorrectly stated Sakotas never attempted suicide. Dr. Bell did review the medical-legal reports of the psychologist for Motel 6, Mark Mosk. Both doctors diagnosed adjustment disorder with mixed anxiety and depressed mood. In his reports, however, Dr. Mosk expressed his opinion that the stress at Motel 6 was not responsible for at least 51 percent of Sakotas' psychiatric injury. Dr. Bell disagreed, stating that Sakotas was able to continue working despite her personal problems before Polhill became manager.

Dr. Mosk, on behalf of the employer, recorded a similar but somewhat more detailed history than did Dr. Bell. However, in conclusion, Dr. Mosk stated Sakotas did not sustain any form of industrial injury or disability because she was able to work five months for Polhill until her inability to adjust resulted in resentment and anger. Coupled with Sakotas' problems with her son and daughter, Dr. Mosk opined that as far as her temporary disability, "... 80 [percent] of her present disability was the result of the natural progression of her nonindustrial circumstances and condition, and would have existed absent the industrial exposure. Consequently, 20 [percent] of her current emotional disability is industrially caused. Thus, the predominant cause of this psychiatric injury is nonindustrial in nature." (Emphasis in original.)

Dr. Mosk subsequently reviewed Sakotas' deposition and court records. He noted in his report a history of attempted suicide, bankruptcy, her third husband's alcoholism, alienation from her mother, her son's schizophrenia and her daughter's kidney disease. When asked at his deposition the nature of the nonindustrial circumstances mentioned in his report, Dr. Mosk answered it was Sakotas' psychiatric history, the challenges of her son and daughter and difficulties with her boyfriend. Dr. Mosk further stated he was unable to obtain enough information from Sakotas and assumed that, as a parent, stress resulted from Sakotas' family situation, although admitting that some individuals "... simply accept the fact that this is the way it's going to be...." In deposition testimony Dr. Mosk agreed that the period with Polhill was the "[last] straw" for Sakotas. He did not change his opinion on predominance, however, noting that she had not informed him of the bankruptcy, attempted suicide, drug use by both her and her boyfriend, and all of her son's many arrests, schizophrenia and violence.

The parties proceeded to trial. Although Sakotas admitted her personal problems, she claimed she had become used to it and her work was unaffected. Sakotas further stated she liked the job, as well as Mr. Polhill, and although the MOD work was not mandatory it was too stressful. Polhill also testified. He indicated Sakotas reluctantly accepted the MOD work, which distressed her from time to time, and on one occasion told the staff not to call her at home. Polhill also felt one person could do the job, and Sakotas was competent enough and a loyal employee.

The WCJ determined Sakotas had sustained an industrial psychiatric injury. However, the WCJ determined the injury was not predominantly caused by employment and thus barred by section 3208.3, subdivision (b)(1). Effective July 16, 1993, subdivision (b)(1) stated, "In order to establish that a psychiatric injury is compensable, an employee shall demonstrate by a preponderance of the evidence that actual events of employment were predominant as to all causes combined of the psychiatric injury."

The WCJ further found Sakotas' industrial injury was caused by a nondiscriminatory, good faith personnel action and consequently was likewise precluded under section 3208.3, subdivision (h). Subdivision (h), which was also added as part of the workers' compensation reform legislation effective July 16, 1993, states, "No compensation under this division shall be paid by an employer for a psychiatric injury if the injury was substantially caused by a lawful, nondiscriminatory, good faith personnel action. The burden of proof shall rest with the party asserting the issue."2 In the opinion on decision, the WCJ explained that although Sakotas was credible and she honestly believed the problems with her children were not stressful, this was a form of denial and thus the nonindustrial stresses were the predominant cause of her psychiatric injury.

The decision quoted Dr. Mosk's report concerning Sakota's children and his version of causation. The WCJ rejected Dr. Bell's statement that Sakotas' family problems had not caused her stress to the point of losing time from work. He also noted that Sakotas, declared by him to be credible, testified that she liked her supervisors, which he found "hardly consistent" with Polhill's reported incompetence and malfeasance, leading to Sakotas' increased responsibilities. The WCJ further reasoned that since Sakotas was able to perform the same duties before Polhill became her manager, it was the transfer to the MOD job, or a personnel action, that caused the stress.

In her petition for reconsideration, Sakotas alleged that employment was predominant because she had been able to adjust and work continuously despite her personal problems until the time Polhill took over. She also contended the WCJ should not have relied upon Dr. Mosk, who, in deposition testimony, admitted to assuming perceived stress from family matters regardless of the facts. Instead, she advocated following Dr. Bell's report, which was consistent with the history.

Finally, Sakotas questioned the constitutionality of section 3208.3, subdivisions (b)(1) and (h). She contended the law impermissibly injected conduct, or common law fault, into the no fault system of compensating for industrial injuries, contrary to article XIV, section 4 of the California Constitution.3 She alleged such conduct-based compensation...

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