SKF USA, INC., Petitioner v. WORKERS' COMPENSATION APPEAL BOARD (SMALLS), Respondent, 714 A.2d 496

Summary

A workers' compensation claimant suffered work-related injuries while working for petitioner employer. The claimant received workers' compensation benefits. The employee settled his third-party claim with the manufacturer of the equipment that caused his injury. Petitioner executed a release of its subrogation rights in exchange for a payment from the claimant. Petitioner later claimed that the release had no effect and filed a petition seeking credit for future benefits payable to the claimant against the third-party settlement recovery. After an initial finding for the claimant, the workers' compensation judge granted petitioner's request for credit because the release lacked consideration. On appeal, respondent workers' compensation appeals board reversed. The court held that the release was valid under the Workers' Compensation Act, Pa. Stat. Ann. tit. 77, § 671. The court held that the release was a bargained-for exchange because the claimant raised the issue of petitioner's right...