Penalties not payable when underlying claims between claimant and employer are settled by C&R Agreement without an admission of liability, with no finding that the injury was work-related and no provision for payment of medical expenses.

After the Compromise and Release Agreement (C&R) between the claimant and the employer was approved, the provider filed a penalty petition, alleging the employer violated the Act by resolving the case by C&R without giving the provider notice and an opportunity to intervene. The provider maintained that the employer violated the Act by failing to pay for the claimant’s medical bills in the C&R. The Workers’ Compensation Judge dismissed the penalty petition, concluding the provider failed to establish that the employer was required to pay the bills since the C&R did not obligate the employer to pay them. The Workers’ Compensation Appeal Board affirmed. The Commonwealth Court affirmed the dismissal of the penalty petition as well, pointing out that the C&R stated it was not an admission of liability by the employer and that it did not require the employer to pay past or future medical expenses. Because the employer never admitted liability and because there was no finding or adjudication that the injury was work related, the employer was not obligated to pay the claimant’s medical bills.

_{Case Law Alerts, 3rd Quarter, July 2016}

_{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 © 2016 Marshall Dennehey Warner Coleman & Goggin, all rights reserved. This article may not be reprinted without the express written permission of our firm.}