Anderson v. Greenville Borough

273 A.2d 512, 442 Pa. 11, 1971 Pa. LEXIS 974
CourtSupreme Court of Pennsylvania
DecidedJanuary 28, 1971
DocketAppeal, No. 93
StatusPublished
Cited by36 cases

This text of 273 A.2d 512 (Anderson v. Greenville Borough) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anderson v. Greenville Borough, 273 A.2d 512, 442 Pa. 11, 1971 Pa. LEXIS 974 (Pa. 1971).

Opinion

Opinion by

Mb. Justice Cohen :

This is an appeal from a per curiam order of the Superior Court, 216 Pa. Superior Ct. 747, 259 A. 2d 691 (1969), affirming a judgment of the Court of Common Pleas of Mercer County which affirmed an order of the Workmen’s Compensation Board. The issue presented is unique and involves the subrogation provisions of the Workmen’s Compensation Act, Act of June 2, 1915, P. L. 736, art. III, §319, as amended, 77 P.S. §671 (Supp. 1970).

Frederick Anderson was struck and killed by a negligently operated automobile while in the course of his employment as a police officer for the Borough of Greenville. He was survived by his widow, Frances Anderson, appellee herein, and six minor children. Appellee entered into an agreement with American Casualty Company, decedent’s employer’s compensation insurer, whereby the insurer began making payments of $47.50 per week pursuant to the Act of June 2, 1915, P. L. 736, as amended, September 30, 1961, P. L. 1762, 77 P.S. §561 (41/2) (Supp. 1970).1 The insurer also paid to the widow the $750 statutory burial expense pursuant to §307(7), 77 P.S. §561(7) (Supp. 1970). (Here[13]*13after, the Borough of Greenville and American Casualty Company shall be referred to as either the employer or the appellant).

Subsequently, Mrs. Anderson, as administratrix, filed a complaint in trespass against the driver of the vehicle which struck and killed her husband. An amicable settlement of $9500 was reached and approved by the Mercer County Court. The employer filed with the Workmen’s Compensation Board a petition for suspension requesting a determination of the distribution to be made of the settlement among the various beneficiaries and the allocation of credit against compensation to which the employer was entitled under §319 of the Workmen’s Compensation Act, which provides for the subrogation rights of an employer.

Under §307(4%) appellee was to receive $47.50 per week because decedent was survived by a widow and more than three children. If he had been survived by a widow and no children, the payment would have been $30.50; if a widow and one child, $36.50; and if a widow and two children, $43.00. Of the amount received in settlement from the third party ($9500), $175 is subtracted for the purpose of this subrogation action, that being the difference between the actual funeral expense ($925) and the statutory burial allowance ($750). This is done because the employer is entitled to credit only for the actual amount it paid toward the funeral expense. The remaining $9325 was distributed to the beneficiaries in accordance with the intestate laws, the widow receiving one-third ($3,-108.33) and the children one-ninth each ($1,036.11).

The controversy here concerns the extent to which the employer is to be subrogated to the proceeds of the settlement of the trespass action, i.e., how much of the settlement proceeds should be treated as advance payments on account of future compensation payments re[14]*14quired to be paid by the employer during the initial three hundred fifty week period provided for in the Act. During that period three of the six children will attain the age of eighteen, and after that period the other three are entitled to receive payments until they reach that age. The parties have agreed that the compensation payable to each of the three younger children, from the expiration of the three hundred fifty week period until their eighteenth birthdays, should be applied against the share that each of them received in the settlement. As to the $47.50 per week payable during the three hundred fifty week period, appellee argues that such amount is hers alone and that, therefore only her one-third share of the settlement counts as the “recovery” which is treated as an advance payment under §319. Appellant argues that the $47.50 is payable in part to the widow ($30.50) and in part to the children ($17.00) and that the whole amount of the settlement should be treated as an advance payment under §319. The Workmen’s Compensation Board held that the employer would only receive credit, or be subrogated, to the extent of the widow’s share of the settlement. Both the lower court and the Superior Court affirmed this decision. We granted allocatur.

Section 319 of the Workmen’s Compensation Act provides, in relevant part: “Where the compensable injury is caused in whole or in part by the act or omission of a third party, the employer shall be subrogated to the right of the employe, his personal representative, his estate or his dependents, against such third party to the extent of the compensation payable under this article by the employer. . . . Any recovery against such third person in excess of the compensation theretofore paid by the employer shall be paid forthwith to the employe, his personal representative, his estate or his dependents, and shall be treated as an advance pay[15]*15ment by the employer on account of any future instalments of compensation.” In order for the carrier to be subrogated to the children’s wrongful death recovery, the children must be dependents within the meaning of the section. In connection with other provisions of the Act, children have been held not to be dependents, but rather to enjoy a special status. They are said to generate enlarged payments to a widow, or to be entitled to payments on their own, when no eligible widow survives, only upon a showing that they are the deceased’s children and are under the statutory age limit. Smrekar v. Jones & Laughlin Steel Corp., 137 Pa. Superior Ct. 183, 8 A. 2d 461 (1939) ; Morris v. Glen Alden Coal Company, 136 Pa. Superior Ct. 132, 7 A. 2d 126 (1939); Nordmark v. Indian Queen Hotel Co., 104 Pa. Superior Ct. 139, 159 Atl. 200 (1932); Logan v. Pot Ridge Coal Co., 79 Pa. Superior Ct. 421 (1922). “Dependents,” within the meaning of §319, has been held to mean persons entitled to compensation under the Act. Mooney v. Lederman, 20 Pa. D. & C. 413 (1934). Therefore, for statutory subrogation to apply, it must be determined whether the children have a right of recovery under the Act.

Children, as provided in §307, 77 P.S. §561, are entitled to compensation in their own right only when the deceased is not survived by an eligible widow. When such a widow exists, the existence of the children serves to generate a larger compensation payment to the widow. The children, however, in such a situation, have no right of their own to recover compensation. Cole v. Keystone Public Service Co., 128 Pa. Superior Ct. 489, 194 Atl. 237 (1937). Further, the fourth, fifth and sixth children do not generate additional compensation payable to the widow. Therefore, it is clear that under these facts the payments to the widow are made so that she may acquit her legal obligation to [16]*16support her children, Act of June 24, 1937, P. L. 2045, §3, as amended, 62 P.S. §1973, Huffman v. Huffman, 311 Pa. 123, 166 Atl. 570 (1933), and are not recovered by the children in their own right.2

Subrogation has been equated to and interchanged with the word substitution and the basic idea is that of substituting the insurance carrier for the insured in the insured’s action against a third party. Home Owners’ Loan Corporation v. Crouse, 151 Pa. Superior Ct. 259, 30 A. 2d 330 (1943) ; R. Anderson, Couch on Insurance 2d, §61:399 (1966). Subrogation is an equitable doctrine and is applicable whenever a debt or obligation is paid from the funds of one person although primarily payable from the funds of another.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

City of Wilkes-Barre v. Sheils
382 B.R. 871 (M.D. Pennsylvania, 2008)
Gillette v. Wurst
937 A.2d 430 (Supreme Court of Pennsylvania, 2007)
Kidd-Parker v. Workers' Compensation Appeal Board
907 A.2d 33 (Commonwealth Court of Pennsylvania, 2006)
In re Stapas
820 A.2d 850 (Commonwealth Court of Pennsylvania, 2003)
Kaiser v. Old Republic Insurance
741 A.2d 748 (Superior Court of Pennsylvania, 1999)
Ramich Ex Rel. Ramich v. Workers' Compensation Appeal Board
734 A.2d 39 (Commonwealth Court of Pennsylvania, 1999)
Darr Construction Co. v. Workmen's Compensation Appeal Board
715 A.2d 1075 (Supreme Court of Pennsylvania, 1998)
Darr Construction Co. v. Workmen's Compensation Appeal Board
677 A.2d 1301 (Commonwealth Court of Pennsylvania, 1996)
Goldberg v. Workmen's Compensation Appeal Board
620 A.2d 550 (Commonwealth Court of Pennsylvania, 1993)
Greater Lancaster Disposal/SCA Services v. Workmen's Compensation Appeal Board
607 A.2d 334 (Commonwealth Court of Pennsylvania, 1992)
Welch v. State
598 A.2d 684 (Court of Chancery of Delaware, 1991)
Roman v. Workmen's Compensation Appeal Board
544 A.2d 1103 (Commonwealth Court of Pennsylvania, 1988)
Bertrand v. Sioux City Grain Exchange
419 N.W.2d 402 (Supreme Court of Iowa, 1988)
Reese v. Workmen's Compensation Appeal Board
505 A.2d 405 (Commonwealth Court of Pennsylvania, 1986)
Judge v. Allentown & Sacred Heart Hospital Center
496 A.2d 92 (Commonwealth Court of Pennsylvania, 1985)
Miller v. Chowdhry
49 Pa. D. & C.3d 211 (Alleghany County Court of Common Pleas, 1985)

Cite This Page — Counsel Stack

Bluebook (online)
273 A.2d 512, 442 Pa. 11, 1971 Pa. LEXIS 974, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anderson-v-greenville-borough-pa-1971.