JUNE 2014 BAD FAITH CASES: WORKERS’ COMPENSATION CARRIER HAD RIGHT TO PLACE A LIEN ON SETTLEMENT WITH THIRD PARTY, AND THUS BAD FAITH CLAIM DISMISSED (Philadelphia Commerce Court)

In Askew v. Insurance Company of the State of Pennsylvania, the court determined that a contractual provision requiring a construction company to waive its subrogation rights as against the owner, general manager, and any contractors involved in a construction project, did not apply to that contractor’s workers’ compensation insurance carrier. Thus, the workers’ compensation carrier could place a lien on the injured worker’s recovery from a third party related to the incident at issue, and that carrier did not act in bad faith in placing the lien on settlement proceeds.

Date of Decision: April 17, 2014

Askew v. Ins. Co. of  Pa., Case No. 01590, COMMON PLEAS COURT OF PHILADELPHIA COUNTY, PENNSYLVANIA, 2014 Phila. Ct. Com. Pl. LEXIS 122 (C.C.P. Phila. April 17, 2014) (Dembe, J.)