Pennsylvania To Determine If Workers’ Compensation Insurer Can Sue Alleged Tortfeasor Even If Injured Worker Does Not Sue In His Own Right
The Pennsylvania Supreme Court decided last week that it would resolve the question of whether the state’s Workers’ Compensation Act allows an employer/insurer to step into the insured employee’s shoes to subrogate against a tortfeasor. In the case, a workers’ compensation insurer paid out $33,929 in workers’ compensation benefits to an employee of an insured employer following the worker falling in a parking lot at another business’s site.
The insurer designated itself a subrogee of the employee and sued the other business alleging that negligence in maintaining the property caused the worker’s injuries. The trial court, however, dismissed the case on the grounds that Pennsylvania does not recognize an independent cause of action by a workers’ compensation insurer where the injured party has not sued in his own right and is not a party to the suit. The state’s lower appellate court affirmed the trial court’s decision. That court explained that Pennsylvania courts have reinforced the aversion to splitting causes of action between subrogors and subrogees because of the potential exposure of defendants to multiple liabilities. On appeal by the insurance company, the Pennsylvania Supreme Court will ultimately decide the issue. We will monitor the case for future developments.
