Advertising Disclosure Email Disclosure

A self-insured employer is not entitled to subrogation against third party settlement for benefits the claimant received during time he was receiving his full salary under the Heart and Lung Act.

July 1, 2018
Commonwealth of Pennsylvania v. WCAB (Piree); 995 C.D. 2017; filed Apr. 4, 2018; Judge Cohn Jubelirer

In its appeal to the Commonwealth Court, the employer maintained that it was entitled to subrogation to the extent of the compensation payable under the Workers’ Compensation Act, not withstanding the claimant’s concurrent receipt of Heart and Lung benefits. The employers’ third party administrator paid the claimant’s weekly workers’ compensation benefits from the employer’s workers’ compensation fund directly to the employer’s payroll fund. According to the employer, workers’ compensation benefits were still payable, even though not directly to the claimant, while he received Heart and Lung benefits. Therefore, they were entitled to subrogate against the third party settlement by the amount its workers’ compensation fund reimbursed its payroll fund.

The Commonwealth Court rejected this argument and affirmed the Workers’ Compensation Appeal Board. Guided by legal precedent, the court held that a self-insured employer cannot subrogate that portion of benefits it paid to a claimant pursuant to the Heart and Lung Act. The court remanded the case for a determination regarding the employer’s entitlement to subrogation for benefits paid solely while the claimant was entitled to benefits under the Workers’ Compensation Act.


Case Law Alerts, 3rd Quarter, July 2018

Case Law Alerts is prepared by Marshall Dennehey Warner Coleman & Goggin to provide information on recent developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. Copyright © 2018 Marshall Dennehey Warner Coleman & Goggin, all rights reserved. This article may not be reprinted without the express written permission of our firm.

Affiliated Attorney

Francis X. Wickersham
(610) 354-8263

Practice Areas

Before you send this email please note:

You are attempting to send email, through a link on our website, to an attorney of Marshall Dennehey Warner Coleman & Goggin or an employee in our firm. Please note that your email may not be treated as confidential and does not create an attorney-client relationship. You should not rely upon the transmission of an email through this website if you are seeking to enter into such a relationship. Until such time as we have agreed to represent you, no information in your email will be treated as confidential. Please contact us directly by telephone at 1.800.220.3308 if it is your intent to seek legal counsel with our firm or convey confidential information.

If it is still your intent to send this email, knowing that it may not be treated as confidential, you may accept our terms of agreement by pressing "OK". If you choose not to accept these terms of agreement you may navigate away from this page by pressing "Cancel."