Pennsylvania Reneges Once Again On Social Bargain Of Workers’ Compensation Subrogation

A March 10, 2022, Pennsylvania Superior Court appellate decision underscores why the cost of workers’ compensation insurance for small businesses is the highest in the northeast United States.

In Loftus v. Decker, the workers’ compensation carrier (Eastern Alliance) paid $196,093.34 in benefits to Michele Loftus after a motor vehicle accident caused by Katrina Decker.

Loftus and her husband filed a praecipe for writ of summons. This technically began the third-party lawsuit.

After filing the writ, and because the lien was so large, Loftus threatened not to file a third-party suit if Eastern did not agree to reduce its lien. Eastern refused to agree to this.

Instead, in an effort to nudge Loftus to file the complaint, Eastern attempted to protect its statutory right of reimbursement and subrogation by filing an intervention in the pending case.