48 Pa. D. & C.5th 290
Pennsylvania Court of Common P...2015Background
- Decedent William J. McCarthy, IV, a Shenango Township police officer, died in a work-related automobile accident on May 2, 2013.
- Decedent’s estate (Executor Michael Allen McCarthy) is the beneficiary of $200,000 in underinsurance motorist (UIM) benefits from Nationwide.
- Shenango Township / Inservco (workers’ compensation payer) claimed a right to subrogation against the Estate for those UIM proceeds, asserting preservation of rights under Section 319 of the Workers’ Compensation Act.
- The Executor moved to strike Shenango Township’s claim, arguing Shenango lacked authority to subrogate the UIM proceeds.
- After briefing and oral argument, the common pleas court considered whether it had jurisdiction to adjudicate the subrogation issue.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the common pleas court may decide Shenango Township’s right of subrogation to the Estate’s UIM proceeds | Executor: strike claim; court lacks power to permit Shenango’s subrogation against Estate UIM funds | Shenango: claim preserves its Section 319 subrogation rights and therefore may stand | Motion to strike denied; court lacks jurisdiction to decide subrogation—exclusive jurisdiction remains with workers’ compensation authorities |
Key Cases Cited
- Thompson v. W.C.A.B., 781 A.2d 1146 (Pa. 2001) (discusses origins of employer subrogation in equity)
- Dale Mfg. Co. v. Workmen’s Compensation Appeal Bd., 421 A.2d 653 (Pa. 1980) (establishes conditions for employer subrogation against third-party recovery)
- Stout v. W.C.A.B., 948 A.2d 926 (Pa. Cmwlth. 2008) (general rule that common pleas courts lack jurisdiction over workers’ compensation subrogation disputes)
- Gillette v. Wurst, 937 A.2d 430 (Pa. 2007) (recognizes narrow circumstances where common pleas court may resolve related subrogation issues)