Glass v. Workers' Compensation Appeal Board
2013 Pa. Commw. LEXIS 15
| Pa. Commw. Ct. | 2013Background
- Claimant sustained work-related injuries; employer paid IOD and medical benefits.
- Claimant obtained a $490,000 third-party arbitration award against PCC.
- Employer filed a Review Petition seeking subrogation and a lien of $219,755.63.
- Claimant alleged employer acted in deliberate bad faith and spoliated evidence to undermine his third-party action.
- WCJ found no deliberate bad faith; concluded miscommunication caused alteration of the motorcycle prior to inspection; subrogation remained.
- Board affirmed; held no deliberate bad faith and subrogation under Section 319 remained.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did Claimant prove deliberate bad faith to subvert the third‑party action? | Glass argues intentional subversion by Legal Assistant. | City contends no deliberate bad faith; miscommunication occurred. | No deliberate bad faith; subrogation preserved. |
| Is the miscommunication finding supported by substantial evidence? | Glass contends there was no miscommunication that could explain alteration. | City argues the WCJ reasonably inferred miscommunication among employees. | Yes; substantial evidence supports miscommunication. |
| Does dereliction by Legal Assistant warrant waiver of subrogation? | Glass cites dereliction to extinguish subrogation under Thompson. | City argues WCJ did not find dereliction; miscommunications rather than deliberate dereliction. | No dereliction found; no waiver of subrogation. |
Key Cases Cited
- Thompson v. Workers’ Compensation Appeal Board (USF & G), 566 Pa. 420 ((2001)) (subrogation absolute unless deliberate bad faith shown)
- Winfree v. Philadelphia Electric Company, 520 Pa. 392 ((1989)) (subrogation can be altered only by choice; context in Thompson)
- Smith v. Bell Telephone Company of Pennsylvania, 397 Pa. 134 ((1959)) (circumstantial evidence must preponderate to prove a conclusion)
- Elliott Turbomachinery Co. v. Workers’ Compensation Appeal Board (Sandy), 898 A.2d 640 ((Pa.Cmwlth. 2006)) (weight/credibility of WCJ findings defer to fact-finder)