Prem v. Johns-Manville Products Corp.

19 Pa. D. & C.3d 162, 1981 Pa. Dist. & Cnty. Dec. LEXIS 374
CourtPennsylvania Court of Common Pleas, Alleghany County
DecidedFebruary 27, 1981
Docketno. G.D. 77-22055
StatusPublished
Cited by2 cases

This text of 19 Pa. D. & C.3d 162 (Prem v. Johns-Manville Products Corp.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Alleghany County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Prem v. Johns-Manville Products Corp., 19 Pa. D. & C.3d 162, 1981 Pa. Dist. & Cnty. Dec. LEXIS 374 (Pa. Super. Ct. 1981).

Opinion

DEL SOLE, J.,

—The question before the court is whether plaintiffs employer can be joined as an additional defendant in a negligence action, where the accident in question occurred after the effective date of the Pennsylvania comparative negligence act, Judicial Code, 42 Pa.C.S.A. §7102. The original defendant in this case now contends that because of this statute the employer must be joined so as to properly determine the percentage of causal negligence of each tortfeasor.

It should first be noted that the constitutionality of section 303(b) of the Pennsylvania Workmen’s Compensation Act of June 2, 1915, P.L. 736, as amended, December 5, 1974, P.L. 782, sec. 6, 77 P.S. §481(b), has previously been upheld by our courts. See Tsarnas v. Jones & Laughlin Steel Corporation, 488 Pa. 513, 412 A. 2d 1094 (1980), opinion of Flaherty, J. Therefore, this court must now determine whether the legislation, in view of the prior decisions of the courts of the Commonwealth prohibiting the joinder of an employer under these circumstances, should be considered as having modified the above cited section of the compensation act.

The court is mindful of the cases of Yeagley v. Metropolitan Edison Co., 16 D. & C. 3d 681 (1980), opinion of Gates, P.J., and Flack v. Calabrace, 15 D. & C. 3d 765 (1980), opinion of Keim, P.J., [164]*164wherein it was held that the additional defendant-employer must be joined in a case of this type.

While this court sees the wisdom of joining the employer in personal injury actions brought by an employe so that the issue of the employer’s rights of subrogation can be dealt with either at settlement or trial, the court is of the opinion that the comparative negligence act did not and does not modify the Pennsylvania Workmen’s Compensation Act. Section 303(b) of the Pennsylvania Workmen’s Compensation Act provides:

“(b) In the event injury or death to an employe is caused by a third party, then such employe, his legal representative, husband or wife, parents, dependents, next of kin, and anyone otherwise entitled to receive damages by reason thereof, may bring their action at law against such third party, but the employer, his insurance carrier, their servants and agents, employes, representatives acting on their behalf or at their request shall not be liable to a third party for damages, contribution, or indemnity in any action at law, or otherwise, unless liability for such damages, contribution or indemnity shall be expressly provided for in a written contract entered into by the party alleged to be hable prior to the date of the occurrence which gave rise to the action.”

This provision has been interpreted to completely abolish tort actions against an employer for injuries or death suffered by an employe while in the course of his or her employment. It also grants to employers total immunity from third party actions seeking contribution or indemnity such as those presently before the court. Presumably aware of these interpretations, the legislature passed the [165]*165Pennsylvania comparative negligence act. Nowhere in that act is there any reference to the Pennsylvania Workmen’s Compensation Act, nor was section 303(b) of the Workmen’s Compensation Act amended in any way. If the legislature intended a result such as that urged here by original defendants, it certainly could have said so. Also, the argument that the j oinder of an employer is necessary so that the negligence of the employer can properly be determined is not a novel one. This argument could have been made and was made in cases that arose prior to the passage of the comparative negligence act. This court can see no real difference in the argument made by the parties here. A third party in those prior cases is also deprived of the benefit of having an employer on the record as a party-defendant. Yet it was held that the employer could not be joined. The argument in this case and the opinions of Judges Gates and Keim discuss the unfairness of not having the contribution of the employer determined. This is, indeed, a matter for the legislature.

What we are dealing with here is the social implication of section 303(b) which caused Justice Flaherty in Tsarnas, supra, to comment as follows, at p. 523, 412 A. 2d 1099:

“It has been said that legislation similar to section 303(b) has been severely criticized by courts and commentators and that it results in ‘too absolute a victory for the employer.’ It may even be that section 303(b) is a legislative over-reaction to the rising costs of Workmen’s Compensation insurance coverage, and that if its purpose is to more evenly distribute economic losses, it has fallen short of its goal. But surely these are arguments grounded not [166]*166on constitutional precepts, but on social policies. As such, they must be addressed to the legislature, and not to the courts.”

However, the Supreme Court in Tsarnas, supra, reserved the question of the employer’s right of subrogation, and stated atp. 520, fn.2, 412 A. 2d 1097, fn.2, “we leave for another day the issue as to whether the employer’s right of subrogation nevertheless remains unimpared.”

Similarly, the concurring opinion in Tsarnas states, atp. 524,412 A. 2d 1099; “I join in the result of the majority with the condition that the employer’s right to subrogation is not automatic. The employer must in some judicial proceedings establish its freedom from fault in order to be subrogated.”

To allow an employer to reap the benefits of his employes’ claim without any determination of the employer’s fault, results in an unconscionable enrichment of the employer. Further, not having the employer on the record frustrates judicial administration in allowing a non-party the ability to control settlement.

A careful reading of section 303(b) of the compensation act reveals that this need not be the case. The operative language of that section eliminates claims for “damages, contribution, or indemnity by actions . . .” against the employer. This language does not automatically insure the employer’s subrogation interests nor does it exempt the employer from suit involvement to determine its right to subrogation.

Courts have traditionally strived to include all claims that can be resolved in one action. This promotes judicial economy and reduces litigation costs which would result from a multiplicity of lawsuits.

[167]*167To achieve this end, it becomes obvious that the employer should be joined as plaintiff pursuant to Pa.R.C.P. 2227 or 2229 either as a voluntary or involuntary plaintiff.

Bringing the employer on the record as a plaintiff is for the sole purpose of determining the percent of the employer’s negligence, if any, in the happening of the accident. The extent of the employer’s involvement in the lawsuit by his employe is only to determine the employer’s degree of negligence and may not operate to reduce the third party’s ultimate responsibility to pay a verdict rendered by the factfinder. This is obvious since section 303(b) ehminates the right of contribution.

Therefore once the employer is on the record as a plaintiff, his percentage of negligence can be determined. If the employer is not negligent to any degree he recovers his subrogation interests. However, if he is negligent in any degree, his right of subrogation is eliminated and plaintiff-employe can still collect his entire recoverable verdict from any other party held responsible.

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19 Pa. D. & C.3d 162, 1981 Pa. Dist. & Cnty. Dec. LEXIS 374, Counsel Stack Legal Research, https://law.counselstack.com/opinion/prem-v-johns-manville-products-corp-pactcomplallegh-1981.