Under § 319, an employer is entitled to subrogation against a claimant’s recovery of uninsured motorist’s benefits from the policy of a co-employee.

The Commonwealth Court affirmed the Workers’ Compensation Appeal Board’s decision that the workers’ compensation insurance carrier was entitled to subrogation against the claimant’s settlement with her co-workers’ motor vehicle insurance carrier. In doing so, they rejected the claimant’s argument that subrogation was improper because the co-worker paid for the uninsured/underinsured motorist’s coverage. According to the claimant, the employer should have the right to subrogation only where it has paid for the uninsured/underinsured motorist’s coverage. The Commonwealth Court held, however, that the employer has the right to subrogation not only when the employer has paid for the policy, but also when a third party, such as a customer or co-worker, has paid for the policy.

_{Case Law Alerts, 2^nd Quarter, April 1, 2016}

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