- Even If a Claim Petition Is Contested At The Time The Third-Party Settlement Funds Are Distributed, The Employer Is Entitled to Subrogation
- October 6, 2017
The claimant alleged multiple injuries in a work-related motor vehicle accident. While this claim petition was pending, he entered into a settlement agreement with a third party to resolve his auto case for $15,000. After attorney’s fees and costs, he netted $9,498.25. Later, the Workers’ Compensation Judge granted the claim petition, and the employer sought to recover its lien. The judge dismissed this petition, finding that the employer had not accepted the work injuries at the time of settlement of the third-party claim. The employer appealed, and the Appeal Board reversed. The claimant then appealed to the Commonwealth Court, arguing the employer’s contest of the claim petition at the time third-party settlement funds were distributed prohibits the employer from recovering its lien under the Act. The court rejected this argument, holding the employer did not waive its rights to subrogation under Section 319 of the Act by contesting the claim petition.