Facts

Defendant R.L. Spear Company Inc., was an auctioneering firm with sales offices and warehouse facilities in Los Angeles, Taft, and Hayward. It carried workers' compensation insurance through State Compensation Insurance Fund (SCIF) for the years 2004 and 2005.

SCIF assessed premiums for those years, which defendant paid. Subsequent to the policy periods, SCIF conducted an audit of defendant's payroll and determined that defendant owed additional premiums totaling $52,000 on the ground certain of its employees were warehousemen as opposed to office workers. Defendant refused to pay the additional premiums.

SCIF assigned its claim for workers' compensation insurance premiums to American Recovery Service Inc. and suit was filed to collect the additional assessed premiums.

PLAINTIFF'S CONTENTIONS:
Plaintiff contended its assignor, SCIF, had conducted an audit and had properly determined that certain employees of defendant were warehouse workers, as opposed to office workers, and that the premiums for warehouse workers were higher, resulting in $52,000 in additional premiums that were due.

DEFENDANT'S CONTENTIONS:
R.L. Spear disagreed with the results of the audit and contended that the employees in question were office workers, for whom correct premiums had been charged.

Settlement Discussions

Plaintiff demanded $52,000 and offered a payment schedule. Defendant offered $0.

Result

Defense.

Other Information

FILING DATE: Feb. 2, 2009.