Pacific Ins. Co., Ltd. v. Champion Steel, LLC

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James Doughty was injured during the course of his employment with Connecticut Reliable Welding, LLC (Reliable). Pacific Insurance Company, Ltd. (Pacific) had issued an insurance policy providing workers’ compensation coverage to Reliable and, therefore, paid Doughty workers’ compensation benefits. Pacific brought this action against Defendants - steel and construction companies - alleging negligence. Defendants moved to dismiss the complaint, arguing that that Pacific did not have standing to bring an action under either Conn. Gen. Stat. 31-293 or the common law doctrine of equitable subrogation. Pacific filed a motion to substitute Reliable as the party plaintiff. The trial court denied Pacific’s motion and granted Defendants’ motions to dismiss the complaint. The Supreme Court reversed, holding that a workers’ compensation insurer can maintain an equitable subrogation claim against third-party tortfeasors to recover benefits it has paid on behalf of an insured employer to an injured employee, and therefore, Pacific can properly assert an equitable subrogation claim. Remanded. View "Pacific Ins. Co., Ltd. v. Champion Steel, LLC" on Justia Law