The Federal District Court for the Eastern District of Pennsylvania has ruled that a workers’ compensation carrier and an injured claimant can negotiate the assignment of the compensation carrier’s right of subrogation in a compromise and release agreement. The court found that the right of subrogation is a property or chose in action which is subject to sale or assignment. As such an injured claimant who is assigned the carrier’s right of subrogation can put that number “on the board” in a third party action and seek recovery for that loss. The court found there was no public policy rationale preventing the assignment of this right; it was not a violation of the collateral source rule; and it is not double dipping by the injured claimant.
Walker v. Big Burger Restaurants, Inc., 2010 U.S. Dist LEXIS 9075 (2010)
Filed: February 2, 2010