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National Casualty Co. v. Kinney
90 A.3d 747
| Pa. Super. Ct. | 2014
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Background

  • Employees of Tobyhanna Army Depot participated in a federal Mass Transportation Program (MTP) using government-issued vouchers to defray vanpool rental costs; employees chose approved van vendors and could opt out anytime.
  • Beck leased a van from Trygar Transportation; Trygar’s insurer is National Casualty Company (NCC). Beck drove with co-workers (MTP participants) as passengers; an accident injured Kinney.
  • Kinney sued Beck and Trygar in a separate action. NCC filed a declaratory-judgment action seeking a ruling that the MTP participants were in the course and scope of employment so the Workers’ Compensation Act (WCA) was their exclusive remedy and NCC had no coverage obligations.
  • The trial court denied NCC’s summary judgment motion; NCC appealed. The Superior Court held the denial was a final, appealable order under the Declaratory Judgments Act.
  • On the merits, the court examined (1) whether the employment-contract exception to the coming-and-going rule applied and (2) whether the Ridesharing Act precluded WCA coverage for the injured passenger.

Issues

Issue Plaintiff's Argument (NCC) Defendant's Argument (Kinney / trial court view) Held
Appealability of denial of summary judgment in declaratory action Denial disposed of the declaratory claims and is final and appealable Denial left issues for trial (implicit) Court: Denial was effectively a negative declaratory judgment resolving NCC’s requested rights; appealable under Declaratory Judgments Act and Pa.R.A.P. 341
Employment-contract exception to coming-and-going rule — did employer control means/costs of commute? Tobyhanna controlled eligibility, set program rules, and provided vouchers (subsidy), so implied employment contract covers transportation => WCA exclusive remedy Tobyhanna did not control means (employees chose vendors), vouchers were flat fringe amounts not tied to commute distance/costs, minimal oversight — so no employer control or direct cost provision Court: No genuine dispute of fact supporting employer control or expense tied to commute; employment-contract exception does not apply
Effect of Ridesharing Act on WCA applicability Ridesharing Act’s WCA provision applies only when employer owns/leases vehicle; Tobyhanna effectively leased by providing vouchers/administering MTP, so WCA should apply Ridesharing Act excludes WCA for injured passengers in ridesharing; Tobyhanna did not own/lease/contract for the van and merely provided information/vouchers — Act bars WCA recovery for passenger Court: MTP vanpool fits Ridesharing Act; injured passenger’s claim is excluded from WCA because employer did not own/lease/contract for vehicle and the Act displaces WCA for passengers

Key Cases Cited

  • Wickett v. Nationwide Mut. Ins. Co., 763 A.2d 813 (Pa. 2000) (Declaratory Judgment Act can make an order final and immediately appealable when it effectively declares parties’ rights)
  • Wachs v. W.C.A.B., 884 A.2d 858 (Pa. 2005) (framework for applying the employment-contract exception to the coming-and-going rule)
  • Schiavone v. Aveta, 41 A.3d 861 (Pa. Super. 2012) (employment-contract exception applies where employer owned/insured vehicle and paid costs directly related to commute)
  • Williams v. W.C.A.B., 721 A.2d 1140 (Pa. Commw. 1998) (flat travel allowances not tied to commute cost/distance do not create an implied contract to provide transportation)
  • Leisure Line v. W.C.A.B., 986 A.2d 901 (Pa. Commw. 2009) (per diem or flat travel payments insufficient to satisfy employment-contract exception)
Read the full case

Case Details

Case Name: National Casualty Co. v. Kinney
Court Name: Superior Court of Pennsylvania
Date Published: Apr 25, 2014
Citation: 90 A.3d 747
Court Abbreviation: Pa. Super. Ct.