Workers' Compensation - Subrogation

Summary of Pennsylvania Decisions

Stout v. Workers' Compensation Appeal Board (Pennsbury Excavating, Inc.), No. 1969 C.D. 2007 (Pa.Cmwlth., May 22, 2008)

Holding: An employer has an absolute right of subrogation from a claimant’s third party recovery when the claimant received compensation payments from the employer's insurer, which accepted liability for the work injury. The Court declined to rule that, under the facts presented, the employer and its workers' compensation insurer engaged in deliberate bad faith conduct in order to subvert the claimant's third party action, potentially barring its right to subrogation.