Agreement Doesn't Bar Employer From Subrogation Against Settlement

The Commonwealth Court of Pennsylvania ruled that an employer could subrogate against the balance of a worker’s third-party settlement by reducing future indemnity payments. John Mercalde worked for the Borough of Swissvale as a police officer. He suffered injuries in a car accident while on duty in October 2017. The borough accepted liability for Mercalde’s injuries. Mercalde filed suit against the third-party tortfeasor responsible for the accident and received a $250,000 settlement. Mercalde then entered into an agreement with the borough identifying its total accrued subr...