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Injured Worker Left Paying the Price: Subrogation in Workers’ Compensation Matters

Pond Lehocky Attorney Morty Cassidy discusses insurance, work injuries, and subrogation in The Legal Intelligencer.

Pond Lehocky Stern Giordano Associate Maureen “Morty” Cassidy argues that it is not right that an employer’s insurance company is entitled to subrogate the amount of third-party recovery that an injured worker receives for their work injury.  In a recent article published in The Legal Intelligencer titled “With subrogation in workers’ compensation matters, it’s the injured worker left paying the price”, Cassidy discusses the issues of how an employer’s insurance company can subrogate against all monies recovered from a third-party case. 

“In Pennsylvania, the carrier is entitled to subrogate the amount of the third-party recovery, reduced pro rata by costs and fees, even though some of the damages are for non-economic losses,” says Cassidy in her latest article. 

Subrogation is defined as ‘the substitution of one person or group by another in respect of a debt or insurance claim, accompanied by the transfer of any associated rights and duties.’ Morty describes subrogation in workers’ compensation cases as “a common law doctrine developed to prevent double recovery and ensure that the party at fault, rather than an innocent party, be held responsible for the injury.” 

“In other words, the carrier is paying wage loss and medical benefits for the work injury, yet they get money back for all damages paid, such as pain and suffering. Equitable? No, that math does not add up.” 

To read the full article, click here. 

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