On its own motion or upon the filing of a petition pursuant to Rule 10450, the Workers' Compensation Appeals Board may order payment of reasonable expenses, including attorney's fees and costs and, in addition, sanctions as provided in Labor Code section 5813. Before issuing such an order, the alleged offending party or attorney must be given notice and an opportunity to be heard. In no event shall the Workers' Compensation Appeals Board impose a monetary sanction pursuant to Labor Code section 5813 where the one subject to the sanction acted with reasonable justification or other circumstances make imposition of the sanction unjust.

A bad faith action or tactic is one that results from a willful failure to comply with a statutory or regulatory obligation or from a willful intent to disrupt or delay the proceedings of the Workers' Compensation Appeals Board.

A frivolous bad faith action or tactic is one that is done for an improper motive or is indisputably without merit.

Violations subject to the provisions of Labor Code Section 5813 shall include but are not limited to the following:

Failure to appear or appearing late at a conference or trial shall be deemed a bad faith action or tactic solely intended to cause unnecessary delay where a reasonable excuse is not offered or the offending party has demonstrated a pattern of such conduct.

Filing a pleading, petition or legal document shall be deemed a bad faith action or tactic that is frivolous or solely intended to cause unnecessary delay unless there is some reasonable justification for filing the document.

Failure to timely serve evidentiary documents, including but not limited to medical reports pursuant to rule 10608, shall be deemed a bad faith action or tactic that is frivolous or solely intended to cause unnecessary delay unless that failure resulted from mistake, inadvertence, or excusable neglect.

Failing to comply with the Workers' Compensation Appeals Board's Rules of Practice and Procedure or an order of the Workers' Compensation Appeals Board, including an order of discovery, shall be deemed a bad faith action or tactic that is frivolous or solely intended to cause unnecessary delay unless that failure results from mistake, inadvertence, surprise, or excusable neglect.

This rule shall apply only to applications filed on or after January 1, 1994.

Note: Authority cited: Sections 133 and 5307, Labor Code. Reference: Section 5813, Labor Code