4-231-877 (1998). LARRY GILLETTE (Final Order 1).

• Case Date: November 12, 1998
• Court: Colorado

Colorado Workers Compensation 1998. 4-231-877 (1998). LARRY GILLETTE (Final Order 1) INDUSTRIAL CLAIM APPEALS OFFICEIN THE MATTER OF THE CLAIM OF LARRY GILLETTE, Claimant, v. BURLINGTON COAT FACTORY Employer, and RELIANCE NATIONAL INDEMNITY CO., _ SCIBAL ASSOCIATES AND FRONTIER ADJUSTERS, INC., Insurer, Respondents.W. C. No. 4-231-877FINAL ORDER Respondents Burlington Coat Factory and Reliance National Indemnity Company (Reliance) seek review of an order of Administrative Law Judge Wells (ALJ) which imposed penalties on Reliance. Reliance argues that the ALJ erred in imposing penalties based on the failure of its agents to respond to discovery orders. We perceive no error. The claimant sustained a compensable injury in August 1994. At the time of the injury, Burlington Coat Factory was insured by Reliance. Reliance retained Scibal Associates (Scibal) to adjust the claim. Scibal in turn retained Frontier Adjusters (Frontier) to conduct the actual adjusting duties. In April 1995, the claimant was placed at maximum medical improvement (MMI) by the treating physician. The treating physician advised the claimant that the insurer might require an independent medical examination (IME) for purposes of assessing the claimant's permanent impairment. However, by October 1995, the respondents had not requested an IME or filed a final of admission of liability for permanent impairment. The claimant contacted the Frontier insurance adjuster, but the claimant's efforts to resolve his claim were unsuccessful and he retained counsel to assist him. On February 14, 1996, claimant's counsel wrote to Reliance, in care of Scibal, requesting the production of various documents including medical records, correspondence, and wage verification. However, counsel received no response, and filed a "Motion to Compel Carrier File" in early May 1996. The motion listed Reliance "_ Scibal Associates" as "respondents," and requested an order "compelling the Respondents to produce to Claimant's counsel the complete copy of the file maintained by Frontier Adjusting with respect to this matter." On May 20, 1996, ALJ Wheelock entered an order granting the motion to compel, and ordered that the "Respondents produce to Claimant's counsel a complete copy of the file maintained by the insurance adjusting entity with respect their involvement in this matter" within ten days of the order. The order was mailed to Reliance in care of Scibal. However, no documents were produced and counsel for claimant filed a second "Motion to Compel" dated October 24, 1996. The motion recounted that counsel had obtained documents from the Division of Workers' Compensation indicating that the matter was being handled by Frontier Adjusters located at a different address than Scibal. Counsel also stated that "it would appear from a review of the file that numerous...