Mondragon v. Jo Jo Pizza (Workers’ Comp. Appeal Bd.), 2025 Pa. Commw. LEXIS 6 (Pa. Commonwealth Ct., January 6, 2025)(McCollough, J.)
Employer allegedly engaged in bad faith settlement negotiations during the pendency of a tort action by declining to compromise the amount of its subrogation lien. Claimant contends that employer therefore has forfeited its right to subrogation under the Section 319 of the Workers’ Compensation Act. The Commonwealth Court said that refusing to negotiate a lien does not constitute deliberate bad faith that would vitiate its right to subrogate against third party recoveries.