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City entitled to subrogation in injured police officer claim

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A Pennsylvania appellate court ruled the City of Philadelphia can recover, through subrogation, benefits paid through the Heart and Lung Act to an injured city police officer.  

Pennsylvania’s Commonwealth Court on Thursday ruled for the city in an appeal brought by Barbara Tiano, who was hurt in October 2016 after falling into a utility pole owned by PECO Energy Co.

Ms. Tiano reached a $450,000 settlement with PECO, and the city asserted it was entitled to third-party recovery for benefits already paid.

A comp judge later denied the city’s petition for subrogation, saying recovery could only be related to workers comp benefits paid after the settlement agreement was reached, not Heart and Lung Act benefits.

A comp review board reversed the comp judge on the subrogation issue, saying because the third-party settlement arose from a non-motor vehicle action, the city had a subrogation right to any benefits paid from the date of the work injury.

Ms. Tiano appealed, arguing that even if the city was entitled to subrogation, it is barred from recovery because the claimant is a government employee.

The appeals court determined the city is entitled to subrogation regardless of whether benefits were paid through comp or the Heart and Lung Act.

It also said Ms. Tiano’s argument regarding immunity “lacks legal support.”