Fulmer v. Pennsylvania State Police

In Fulmer v. Pennsylvania State Police, 167 Pa. Commw. 60, 647 A.2d 616 (Pa. Cmwlth. 1994), a state trooper was injured while riding as a passenger in a state police vehicle. He filed a third-party lawsuit when the 1984 version of Section 1720 was in effect and when the phrase that currently reads "benefits paid or payable by a program, group contract or other arrangement whether primary or excess" originally read "benefits in lieu thereof paid or payable." The trooper received Heart and Lung Act benefits, and the State Police sought subrogation against his tort claim settlement. The trooper argued that clear legislative intent precluded subrogation in a motor vehicle tort claim recovery. On the other hand, while acknowledging that the Heart and Lung Act contained no specific provisions regarding an employer's right to subrogation, the State Police argued that broad considerations of equity, good conscience and unjust enrichment required that it be afforded subrogation rights in the tort recovery. The Court pointed out in Fulmer that the MVFRL became effective October 1, 1984 and that if applicable it would supersede the prior case law where a claimant's injury arose out of a motor vehicle accident. Moreover, tort recoveries by a claimant who received workers' compensation benefits likewise would be shielded from subrogation rights based upon the assumption that the accident arose out of the maintenance or use of a motor vehicle and that the MVFRL applied as it existed before Act 44. The Court concluded that Section 1720 applied to benefits paid under the Heart and Lung Act because they qualified within the "benefits in lieu thereof paid or payable" language of that section. The Court explained: Benefits received under the Heart and Lung Act effectively replace workmen's compensation benefits for those employees covered by its provisions. These benefits provided petitioner with a full rate of salary during his temporary incapacity and required him to turn over all workmen's compensation benefits he received to the PSP. ... On its face, the contested language of Section 1720 attempts to include all those potential benefits which may have been too numerous to mention. Furthermore, it is a "well-recognized rule that the Financial Responsibility Law is to be liberally construed." Fulmer, 647 A.2d at 619.