What’s the Subrogation Rule for the Pa. Workers’ Insurance Fund?

Quick Hits

Just what exactly does subrogation mean when it comes to Pennsylvania's workers' insurance fund? Here's how law in the commonwealth spells it out.

Fund Subrogation

In every case where a claim is made against the fund, the fund shall be entitled to every defense against such claim that would have been open to the employer and shall be subrogated to every right of the employer arising out of such accident against the employe, the dependents and against third persons.

The fund may sue or be sued to enforce any right given against or to any subscriber or other person under this act or the Longshore and Harbor Workers' Compensation Act or the Federal Coal Mine Health and Safety Act of 1969, and employers who want insurance against liability for all sums or under circumstances where an employer becomes legally obligated to pay any employe for damages because of bodily injury by accident or disease, including death at any time resulting therefrom, sustained by such employe arising out of and in the course of his employment; proceedings provided in Article IV may be instituted by or against the fund to enforce, before the Workers' Compensation Appeal Board or any workers' compensation judge thereof, the rights given to or against the fund.

Case Example

Mayhugh v. Somerset Telephone Co., 109 A. 213 (Pa. 1920). Pennsylvania law provided that "‘Where a third person is liable to the employee or the dependents for the injury or death, the employer shall be subrogated to the right of the employee or the dependents against such third person, but only to the extent of the compensation payable ... by the employer."

In the case, the fund paid workers' compensation to an injured worker, and so it was entitled to be subrogated pro tanto to the right of the worker in a judgment against the employer for damages since the Workers' Compensation act gave to the fund the right to be subrogated to the right of the employer.

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