City of Philadelphia v. F. Zampogna

177 A.3d 1027
CourtCommonwealth Court of Pennsylvania
DecidedDecember 27, 2017
Docket94 C.D. 2017
StatusPublished
Cited by8 cases

This text of 177 A.3d 1027 (City of Philadelphia v. F. Zampogna) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Philadelphia v. F. Zampogna, 177 A.3d 1027 (Pa. Ct. App. 2017).

Opinions

OPINION BY

PRESIDENT JUDGE LEAVITT

The City of Philadelphia (City) appeals an order of the Court of Common Pleas of Philadelphia County, First Judicial District (trial court) granting declaratory judgment in favor of a City employee, Frank Zam-pogna. The trial court held that Section 1720 of the Motor Vehicle Financial Responsibility Law, 75 Pa. C.S. § 1720, prohibited the City from subrogating its payment of Heart and Lung Act1 benefits to Zampogna from his third-party tort recovery. For the reasons that follow, we affirm the order of the trial court.

Thfe facts of this case are not in dispute. On November 1, 2007, Zampogna, a City police officer, was a passenger iñ a police cruiser participating in a roadblock at the intersection of 22nd Street and Lehigh Avenue in Philadelphia. A private vehicle went through the police roadblock and collided with the cruiser occupied by Zam-pogna. As a result, Zampogna suffered serious injuries and was unable to work as a police officer for several years. The City, which is self-insured for workers’ compensation, issued a Notice of Compensation Payable (NCP) accepting liability for the injury. The NCP also stated that the City was paying Zampogna..Heart and Lung Act benefits in lieu, of workers’ compensation benefits. Reproduced Record at 46a (R.R. --), From November 2, 2007, to September 27, 2011, the City paid Zam-pogna a total of $286,447.77 in Heart and Lung benefits.2

On November 3, 2009, Zampogna filed a tort action against the driver of the vehicle involved in the accident. -The City petitioned to intervene in Zampogna’s tort action to protect the subrogation lien it intended to assert against any recovery. The third-party tort action settled in 2014 for $246,000, which was placed in escrow while the parties litigated the City’s entitlement to its asserted lien. On April 9, 2016,.the City initiated a declaratory judgment action to establish its right, to recover the Heart and Lung Act benefits it paid to Zampogna from his settlement.

A trial was conducted on August 1, 2016, after which the trial court' granted judgment in favor of Zampogna. It held that Section 1720 of the Motor Vehicle Financial Responsibility Law prohibited the City’s subrogation against Zampogna’s tort recovery. The City appealed the judgment.

We begin with a review of the’ three statutes governing" a public employer’s subrogation against an employee’s third-party recovery for his work injury caused by a motor vehicle accident. The three statutes are: the Workers’ Compensation Act,3 the Heart and Lung Act, and the Motor Vehicle Financial Responsibility Law.4

The Workers’ Compensation Act compensates employees who are injured at work for their medical bills and lost wages. Where a work injury prevents an employee from performing his pre-injury job, he is entitled to total disability benefits in the amount of two-thirds of his pre-injury wages.. Section 306(a) of the Workers’ Compensation Act, 77 P.S. § 511. Both public and private employers are subject to the requirements of the Workers’ Compensation Act.

The statute commonly referred to as the “Heart and Lung Act” applies only to .public employers. It requires the payment of full salary .-.to police officers and other , public . safety employees who are temporarily unable to perform , their job because of a.work injury. Section 1 of the Heart .and Lung Act, 63 P.S. § 637. This more favorable wage loss benefit assures “those undertaking dangerous employment in certain institutions that they will continue to: receive full- income when they are injured while performing their duties [and] by offering such assurance; the Commonwealth can attract employees to and keep them in the essential and dangerous jobs.” McWreath v. Department of Public Welfare, 26 A.3d 1261, 1255 (Pa. Cmwlth. 2011). Police officers and public safety employees are also entitled to benefits under the Workers’ Compensation Act. However, “any workmen’s compensation, received or collected” by a public employee collecting Heart and Lung benefits “shall be turned over to the [public employer] and paid into the treasury thereof[.]” Section 1(a) of the Heart and Lung Act, 53 P.S. § 637(a). Self-insured public employers that pay Heart and Lung benefits do not make workers’ compensation payments because they would simply be returned to the employer. Wisniewski v. Workmen’s Compensation Appeal Board. (City of Pittsburgh), 153 Pa.Cmwlth. 403, 621 A.2d 1111, 1113 (1993). Nevertheless, self-insured public employers issue a notice of compensation payable to employees receiving Heart and Lung benefits. Stermel v. Workers’ Compensation Appeal Board (City of Philadelphia), 103 A.3d 876, 878 (Pa. Cmwlth. 2014).

Where a work injury is caused by a third party, Section 319 of the Workers’ .Compensation Act5 states that “the employer shall be subrogated to the right of the employee ... against [a] third party to the extent of compensation payable” under the Act. 77 P.S. § 671. The Heart and Lung Act does not contain a similar provision, but it has long been understood that the common law authorizes public employers to subrogate their Heart and Lung payments from the employee’s third party .tort recovery. See, e.g,, Topelski v. Universal South Side Autos, Inc., 407 Pa. 339, 180 A.2d 414, 420 (1962). The public policy for subrogation has been explained as follows:

First, it prevents double recovery for the same injury by the claimant. Second, it prevents the employer from having to maké compensation payments which resulted from the negligence of a third party. Finally, it prevents a third party from escaping liability for his negligence.

Murphy v. Workers’ Compensation Appeal Board (City of Philadelphia), 871 A.2d 312, 317 (Pa. Cmwlth. 2005).

The 1984 enactment of the Motor Vehicle Financial Responsibility Law upended this paradigm on subrogation, at least with respect to work injuries arising from motor vehicle accidents. Section 1720 of the Law expressly abolished an employer’s ability to subrogate workers’ compensation payments. Section 1720, as enacted in 1984, stated as follows:

In actions arising out of the maintenance or use of a motor vehicle, there shall be no right of subrogation or reimbursement from a claimant’s tort recovery with respect to workers’ compensation benefits', benefits available under Section 1711 (relating to required benefits), 1712 (relating to availability of benefits) or 1715 (relating to availability of adequate limits) or benefits in lieu thereof paid or payaple under Section 1719 (relating to coordination of benefits).

Act of February 12, 1984, P.L. 53, No. 12, § 3 (emphasis added).

As noted, the goal of subrogation is to prevent double recovery for a single loss.

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Bluebook (online)
177 A.3d 1027, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-philadelphia-v-f-zampogna-pacommwct-2017.