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Chair, Medicare Compliance Practice

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Portrait of Anthony Natale III

Results

  • Defense Victory Obtained in Workers’ Compensation Case

    We secured a complete defense victory in a workers’ compensation matter before the Washington Workers’ Compensation Office of Adjudication. The claimant alleged ongoing disability following a work-related cervical spine injury sustained in a truck accident. The defense successfully demonstrated that the claimant had been released to return to full-duty work, was subsequently discharged for cause after failing a mandatory drug test, and had fully recovered from his work injury. Following litigation of both the suspension and termination petitions, the court found that the claimant was capable of returning to unrestricted employment and had fully recovered from his cervical spine injury. As a result, the termination petition was granted.

    Defense Victory Obtained in Workers’ Compensation Case
  • Defense Verdict Obtained Involving an Employment-Related Shoulder Injury

    We received a defense verdict on a claim petition in a case where the claimant sustained a shoulder injury during the course and scope of employment. The employer brought the claimant back to work, to a light-duty driving position that caused a limited loss of wages (for about 1.5 months). They then allowed the claimant to earn his pre-injury wages. The job was so light that the claimant was found sleeping in the employer’s truck during work hours. He was discharged for cause. After the claimant secured new employment with another company at lower wages, he alleged he was entitled to ongoing partial disability. The subsequent claim petition turned on the facts surrounding the discharge as being the real cause for the disability. The business record exception to the hearsay rule was dissected by the court, and the claim petition was dismissed based on the employer’s legally admissible fact and medical witness testimony.

    man with sling signing contract photo
  • Defense Verdict Secured in a Case Centered on an Employment-Related Low Back Injury

    We received a defense verdict on our termination petition in a case where the claimant sustained a low back injury when he slipped and fell in an elevator during his employment. The employer had an IME wherein the claimant was pronounced fully recovered from strain injuries. The claimant presented evidence that alleged disc injury and ongoing radiculopathy. The matter proceeded to litigation and a decision on the merits. The court found the employer’s expert to be credible as to full recovery based on the finding that no architectural change could be identified between the claimant’s diagnostic studies when compared to studies from before and after the work injury.

  • Defense Verdict Secured in a Workers’ Compensation Penalty Petition

    We won a defense verdict on a penalty petition filed by the claimant against a mushroom company. In the penalty petition, the claimant alleged that Supreme Court precedent allows the finding of a penalty when a carrier does not immediately issue an award check after a decision on the merits. The check was issued 19 days after the decision (and within the 30-day time period commonly accepted in the business for payment of awards). The claimant argued that payment should have been made within one day of the award. The case turned on legal precedent concerning the efficacy of statements made in dicta versus common sense practice. The case held implications for procedure on payments of awards in Pennsylvania. After hearing oral argument, the court held that the employer’s argument was more logical and supported by the preponderance of the case law. 

  • Defense Verdict Won in a Workers’ Compensation Claim Petition

    We won a defense verdict on a claim petition filed by the claimant, a police officer for the township. The claimant was called to the scene of an active shooter barricaded in his home. The officer was placed in a strategic position outside the home with weapon drawn. The standoff lasted many hours, but was resolved peacefully when SWAT arrived. The claimant finished his shift and went home. The next morning he awoke with headaches, nausea, double vision and dizziness. Ultimately, he was diagnosed with mini-stroke, nerve palsy and resultant diplopia—he was disabled from working. He filed a claim petition and presented a neurologist to support a work injury. This doctor’s deposition was riddled with objections since the neurologist tried to read into the record (and at times misread into the record) the diagnoses of a neuro-ophthalmologist. The neurologist then tried to argue that the claimant’s condition was a psychological injury in origin. The employer presented the opinions of a board certified neuro-ophthalmologist, who opined that the claimant has no work-related injury. The court found the employer’s evidence to be more believable, and the claim petition was dismissed.

  • Successfully Affirmed Workers’ Compensation Decision Before the Appeal Board

    We convinced the Commonwealth Court to affirm the decision of the Workers’ Compensation Appeal Board in favor of our client, the employer, which upheld the workers’ compensation judge’s denial of a claim petition. By memorandum opinion, the court found that the judge’s credibility findings were neither contradictory nor arbitrary and capricious, and the decision was reasoned. The court agreed with the employer that the defense experts’ opinions constituted substantial evidence, also noting that the Social Security Administration’s findings of disability were irrelevant to the issue of work-relatedness. The court concluded that the claimant failed to sustain her burden of proving a work-related injury, and since the causal connection between her “lingering symptoms and her work duties” was not obvious, she was required to present unequivocal medical evidence establishing that connection, which she failed to do.

  • Successfully Defended a Pennsylvania Township in a Fatal Claim Petition

    We successfully defended a township in Bucks County in the litigation of a fatal claim petition. The widow made an allegation that the decedent (a police K-9 officer) died in his home as a result of exercising with his police dog before heading to work. The fatal claim petition alleged that the decedent died of hypertrophic cardiomyopathy brought on by “vigorous exercise.” The widow presented an expert who held himself out to be a cardiologist. We established during voir dire examination that the expert had no Board Certification in cardiology. We also forced the expert to admit that cardiomyopathy was a pre-existing condition that, in a vast majority of cases, causes death without exertional activity. The widow testified in the matter, but on cross examination she could not confirm the decedent’s exercise because she was asleep at the time. The widow presented a detective and a police chief who asserted that the decedent was in the course and scope of employment at or near the time of death, but both witnesses on cross examination were not present on the morning of the decedent’s death and could not verify that the decedent was undertaking exertional activities. We presented a Board Certified cardiologist who testified that cardiomyopathy is a hereditary condition and not caused or aggravated by activities. The decedent’s death was, therefore, characterized as death by natural causes. The court delivered a full defense verdict in dismissing the fatal claim in its entirety.

  • Successfully Defended Claim Petition for a Major Manufacturing Supplier

    We successfully defended a claim petition on behalf of one of the world’s leading suppliers of equipment and services to packaging and label manufacturers. The claimant was helping to lift a 400-pound slab when she felt her shoulder “pop.” She continued to work for several months, allegedly in pain, until she could no longer work. After vigorous cross examination, the claimant was forced to admit that she provided notice 122 days after the date of injury—which is untimely by the letter of the law. The claimant then asserted that her injury was “repetitive trauma,” arguing that each day she worked after the original incident caused a new injury. Both parties presented medical experts. Cross examination of the claimant’s medical expert dispelled the claimant’s theory of compensability. The court required that the parties engage in mandatory mediation. The claimant declined, noting that “she wanted her day in court,” and then changed attorneys. The court dismissed the claim petition on the bases of violation of notice provisions of the Act and on the lack of credibility of the medical expert presented.

  • Successfully Defended Claim Petition for Philadelphia-based University

    We successfully defended a claim petition on behalf of a Philadelphia-based university. While working for the university as a janitor, the claimant slipped and fell down a flight of concrete stairs. He alleged multiple body part injuries, from head to toe. The employer’s panel doctor did find work injuries limited to the claimant’s extremities. The claimant was referred by his attorney to a pain specialist, who opined significant injuries to multiple body parts. However, during the expert’s trial deposition, he was forced to admit that he has been practicing medicine for less than two years and only offered opinions about neck and back injuries—nothing else. The claimant alleged serious disc herniation injuries in the neck and back, and pursued other body part injuries in the litigation, with no additional expert evidence. The employer presented an orthopedic surgeon who found no injuries on the date of his evaluation and opined that the claimant fully healed from any injuries he may have sustained. The court found only minor strains to the neck and back with a full and complete recovery (and no further benefits due).

  • Defense Verdict in Medicare Lien Dispute for Insurance Carrier

    We successfully defended a Massachusetts-based insurance company in a bitter dispute with the federal government regarding a Medicare conditional lien request. The insurance carrier’s satellite office is based out of New Jersey, and the underlying claim involved an injury sustained in a motor vehicle accident with payments being made to the claimant under a New Jersey PIP policy. The carrier exhausted the PIP policy following the injury. Medicare also paid significant medical bills for the claimant and demanded through the Center for Medicare and Medicaid Services (CMS) that the carrier reimburse all payments made as a conditional lien request. CMS, through their many contractors, threatened legal action with double damages if the lien was not satisfied. The carrier appealed the lien request through two levels of CMS contactors with no success. We formulated a third-level appeal to an administrative law judge, arguing that CMS’s request for additional liens violated state PIP policy law and the carrier’s constitutional rights. Evidence presented showed the PIP policy had been exhausted and, thus, the carrier reverted back to a secondary payer, forcing Medicare/CMS as the primary payer under federal law. The court agreed and a full defense verdict was issued.   

  • Defense Verdict Secured for a Montgomery County Police Department

    We successfully defended a Montgomery County police department in the litigation of a claim petition. The claimant, a police officer, attended an out-of-state extended-stay educational conference. One evening after the conference activities ended, the claimant attended a “booze cruise” where she was imbibing with conference attendees. She continued to socialize and party back at the hotel. Later that night, she entered her hotel suite (which was shared with another female officer), shining her flashlight in order to change clothes. While changing, her roommate became perturbed over the ruckus. An argument between the two officers ignited and soon turned into full-fledged fisticuffs. The pugilists both were injured in the brawl. The claimant filed a claim petition, alleging physical injuries, post-concussive syndrome, mental injuries and total disability. We cross examined the claimant and developed an evidence record that supported she was not in the course and scope of employment at the time of injury. We presented medical witnesses to support that the claimant did not suffer from post-concussive syndrome or any disabling physical or mental injuries. The court found the claimant was not in the course and scope of employment, and the claim was barred by the personal animus defense.  

  • Won Defense Verdict in Landmark Workers’ Comp Case

    We secured a complete defense verdict in a first-of-its-kind workers’ compensation case, where the court concluded for the first time in Pennsylvania that carpal tunnel syndrome and cubital tunnel syndrome is not borne out through alleged repetitive trauma.  In a case of first impression in Pennsylvania, we successfully defended a Berks County mushroom canning facility from a claim petition alleging repetitive trauma injuries to the upper extremities. The claimant alleged that over time his duties as a machine operator caused nerve injuries to both upper extremities. We presented medical expert testimony supporting the existence of these nerve damage but challenged causation. In a modified Frye challenge to claimant’s medical expert opinions, we argued through expert testimony that the state of science and medicine overwhelmingly supports the fact that “repetitive trauma” is not a substantial contributing factor to the development of carpal tunnel and cubital tunnel syndromes. While the court allowed the claimant to present expert testimony to the contrary, it ultimately found our expert testimony opinions to outweigh the claimant’s expert testimony. The court concluded for the first time in Pennsylvania that carpal tunnel syndrome and cubital tunnel syndrome is not borne out through alleged repetitive trauma. This was a complete defense verdict.   

  • Successfully Defended Our Client in Litigation Surrounding a Penalty Petition

    We successfully defended a Philadelphia-based university in litigation surrounding a penalty petition filed by the claimant. The penalty alleged that the university unilaterally suspended indemnity benefits on an open and accepted work injury claim. We presented complex evidence from the insurer that Pennsylvania’s Workers' Compensation Automation and Integration System (WCAIS) electronic system has internal problems which result in unwanted and unrequested claim documents being issued when simple data changes are made to an open claim. We were able to prove that the carrier properly suspended the claim in the system and any and all updated “acceptance” documents filed by the WCAIS system were on the basis of a faulty data system. The penalty petition was dismissed in its entirety.

  • Successfully Defended an Appeal Before the Pennsylvania Workers’ Compensation Appeal Board

    We successfully defended a Pennsylvania-based industrial linear actuator supplier on appeal before the Workers’ Compensation Appeal Board. The claimant appealed a termination order which found her to be fully recovered from work injuries to her low back and multiple other body parts. The claimant alleged on appeal that factors considered by the underlying workers’ compensation judge supporting the full recovery opinion (including a post-injury new slip and fall) were not supported by the evidence record. To the contrary, we successfully argued on appeal that the workers’ compensation judge’s decision was based on cross examination of the claimant’s own medical expert wherein he gleaned a history from the claimant of subsequent injuries that were never disputed by the claimant in follow-up testimony. The Appeal Board held that the judge can only decide cases based on evidence before the court, and the Board would not overturn the judge based on new allegations of the claimant.

  • Successfully Defended a Nationwide Tight-Tolerance Manufacturer

    We successfully defended a manufacturer serving OEMs in the aerospace, defense, semiconductor and high-tech industries. The case involved a claim petition with complex injury allegations and a potentially catastrophic initial judgement on the pleadings since the employer failed to timely answer the claim petition. When we became involved, we were able to limit the judgement on the pleadings to the date that a timely answer could have been filed. Ongoing disability in the case turned on the credibility of the claimant’s medical evidence. The claimant presented an expert witness who opined that the claimant’s virtual lifetime of serious low back and neck abnormalities were “aggravated” by his having sat down at work after feeling dizzy. Tony presented rebuttal expert evidence from a well-respected orthopedic surgeon demonstrating no architectural change in the claimant’s lumbar spine or cervical spine due to the alleged injury event and no ongoing or acute problems. The court accepted the defense evidence as credible, and the claimant was found to be without ongoing disability and fully recovered from any condition subject to the former judgement on the pleadings.

  • Claimant’s Appeal Successfully Defeated in Motor Vehicle Accident Case

    We successfully defeated the claimant’s appeal on a hotly-debated issue surrounding course and scope of employment in a case involving a motor vehicle accident during a paid lunch hour, which resulted in extreme medical treatment costs. We were able to convince the underlying court that the claimant was not in the course and scope of employment at the time of injury due to her deviation to run personal errands. The claimant appealed alleging the fact that, as her lunch hour is paid, she was certainly in the course and scope of employment and the underlying court erred. The Appeal Board affirmed the underlying court’s judgment, and claimant’s appeal was dismissed.

  • Termination petition successfully prosecuted.

    We successfully prosecuted a termination petition, securing a full recovery opinion from the court with reference to a Medicare eligible claimant who worked for a local Philadelphia financial institution. The claimant suffered a knee injury during the course and scope of employment. She ultimately required knee surgery for a torn meniscus. We presented evidence from the claimant’s treating surgeon, coupled with an independent expert, to produce an evidence record that demonstrated by preponderance of the evidence that the knee injury had fully resolved.

  • Fake COVID-19 test sinks plaintiff’s case

    We successfully prosecuted a suspension petition in a case of first impression in Pennsylvania. The claimant sustained a compensable mental injury while employed with the employer. Thereafter, he refused to attend an Impairment Evaluation after receiving 104 weeks of indemnity benefits due to his injury. The court initially issued an order compelling the claimant’s attendance. Nevertheless, the claimant maintained his refusal to attend the evaluation, citing the fact that he was COVID-19 positive and required to quarantine. We demanded that verification of the virus be made part of the evidence record. In response, the claimant’s attorney submitted into the evidence record a COVID-19 testing result, which was an at-home test. We reviewed the testing result and found that it was a fake—there was a pornographic image contained in the window of the positive testing result, and through internet research we determined that this fake test was being used all over the United States. The claimant’s attorney was unaware that the test was fake and maintained it as part of the evidence record. At oral argument, Tony referred the court to the manufactured evidence and not only argued for a suspension of benefits, but also alleged that the claimant violated the fraud provisions of the Pennsylvania Workers’ Compensation Act. Claimant’s attorney immediately removed himself as counsel of record. The court determined, based on the evidence, that benefits were suspended and actually concluded as a matter of law that the claimant committed fraud – a decision of first impression in Pennsylvania.   

  • Fatal claim petition against national trucking company denied.

    The decedent died of a heart attack after a three-day, over-the-road run for the trucking company. The decedent’s dependents argued that the heart attack was caused by the rigors of the job. Although the decedent died as he was about to execute paperwork denoting his employment status as an independent contractor—he never signed the document. The case, therefore, proceeded to litigation in the Workers’ Compensation forum. Expert evidence was presented on the issue of whether the decedent’s job duties had any contribution to the death. The court concluded, based on the evidence presented, that the work duties had no relationship whatsoever to the demise of the decedent. The fatal claim was dismissed in its entirety.

  • Injuries at mushroom facility found non-work related.

    We successfully prosecuted a termination petition and at the same time defended a review petition on behalf of a Berks County mushroom facility in a falling object case. The claimant sustained a strain injury to his neck when he was struck by a stack of falling mushroom baskets at work. Although the baskets only grazed one side of his head and neck, the claimant alleged that his opposite shoulder was injured in the accident to the extent of a fully torn rotator cuff tendon. The claimant also alleged that a calcified longitudinal ligament in his neck was also caused by this accident, resulting in surgery and disability. We convinced the court that the only injury sustained during the incident was a neck strain that fully recovered—all other alleged injuries were found not to be work related.

  • Judge agrees that claimant was not on a “special mission.”

    We defended a claim petition and penalty petition wherein the claimant alleged serious neck and back injuries as a result of a work-related motor vehicle accident. We convinced the judge that the claimant was not in the course and scope of employment at the time of injury and, therefore, his claim was barred. The judge noted that, based on claimant’s testimony on cross examination, he had a legal address in North Carolina but was allegedly leasing an apartment in Newtown Square, Pa. He alleged he was on a special mission on the date of injury, traveling to an office owned by the employer. It was established that on the date of the accident, he was traveling on an expressway in New Jersey prior to his shift and admitted that his job required him to service many of the employer’s offices. The judge accepted the defense argument that the claimant was traveling to work, not in the course and scope of employment and not on a special mission, and dismissed the claim and penalty petitions.

  • Successful Prosecution of a Termination Petition

    We successfully prosecuted a termination petition on behalf of a Philadelphia-based ice cream shop. The claimant sustained a serious ankle fracture after a slip and fall in the shop’s freezer. We utilized the treating physician to certify the claimant’s full and complete recovery from the ankle fracture and established that there were no residual maladies or disability stemming from the incident.

  • Claimant fails at attempt to use COVID-19 pandemic to support payments of disability.

    We successfully defended a regional energy efficiency service agency in a claim petition wherein the claimant attempted to use the COVID-19 pandemic to support payments of disability. The claimant alleged that a work-related auto accident disabled him from employment at the time he was subject to an economic lay-off due to the pandemic. The defense convinced the court that at the time of layoff the claimant was capable of performing his pre-injury job duties despite alleged restrictions due to the motor vehicle accident. The judge also found the claimant to have made a full and complete recovery from the work injury during the pandemic lay-off, and the claimant demonstrated no good reason for his failure to return to work once the pandemic restrictions dissipated. The claim petition was denied and dismissed.

  • Judge rules against Berks County mushroom worker.

    In a case of relative first impression in Pennsylvania, we successfully defended a mushroom harvesting company. The claimant sustained a work-related injury to the right shoulder. She underwent surgery and was released to modified duty. The employer offered her a modified job. The claimant returned to work and continued at restricted duty. She was ultimately found to be fully recovered by a renowned Philadelphia shoulder surgeon. The defense then filed a termination petition, alleging full recovery of the right shoulder. The claimant responded by filing a claim petition, alleging a new injury to the opposite shoulder that totally disabled her from employment. After cross examining the claimant, it was determined that she purposely exceeded her work release restrictions upon return to work, despite the employer’s directive to the contrary. The claimant alleged that her voluntary acts exceeding her restrictions caused her new injury. The judge ruled that the claimant was not in the course and scope of employment when she exceeded her restrictions, and that the alleged injuries to her left shoulder were degenerative, not work-related. The judge also found the claimant to be fully recovered from the previously accepted right shoulder injury.

  • Successful defense of turkey farm against a $1 Million amputation claim.

    We successfully defended one of Pennsylvania’s largest turkey processing plants in a million dollar amputation claim. The claimant alleged that, due to an alleged exposure to turkey blood and feces at the workplace, he developed an infection in his foot that led to amputation of his leg. The claimant alleged a specific loss of the leg, total disability due to injuries separate and apart from the loss, and disabling psychological injuries. The defense was able to prove through the use of an infectious disease expert that the claimant’s leg amputation was caused by an underlying venous insufficiency and infection stemming from years of uncontrolled diabetes. The defense also established on cross examination that the claimant failed to provide proper notice of a work-related injury within the meaning of the Workers’ Compensation Act. 

  • Employer and insurer dismissed from COVID-19 litigation.

    We were successful in dismissing the employer and insurer from a fatal claim as a result of COVID-19 infection. The claimant-widower filed the claim on behalf of his deceased wife, alleging she contracted COVID-19 while working in the capacity of a caretaker for a sick client. We argued that the correct employer for workers’ compensation purposes was the claimant’s client, not the named employer. The Workers’ Compensation Judge agreed and dismissed the named employer and insurer as party defendants.

  • Successful prosecution of de novo request for hearing.

    The hearing was to challenge the Pennsylvania Bureau of Workers’ Compensation Fee Review Section’s final determination that an injured worker’s shoulder surgery expenses must be paid by the insurance carrier and the employer. We argued that the work-relatedness of the shoulder surgery is currently in dispute, thus barring the Bureau’s attempt to compel payment. We also proffered the argument that due process of the provider remained intact since a challenge to work-relatedness must be adjudicated before a provider has standing to challenge the amount or timeliness of payment. The decision of the court quashed the Bureau’s determination and held that no surgical expenses are payable.

  • Successful defense of large Philadelphia-based law firm in litigation of claim petition alleging post-concussion syndrome.

    The claimant slipped and fell at work, injuring his head and neck. The carrier accepted a contusion injury. The claimant alleged multiple additional injuries including cognitive maladies, memory loss, speech problems, vision convergence, photophobia, cranial nerve injuries and balance issues. The claimant testified while wearing sunglasses due to his alleged photophobia condition. Thirteen hours of surveillance video disputed the claimant’s alleged symptoms (including his need for sunglasses). Prior health records revealed the claimant to be treating for all of his alleged cognitive problems before the work incident ever took place. The claimant’s first treating neurologist records supported the claimant’s symptoms to be non-anatomical. The carrier’s IME physician found the claimant to have suffered non-disabling contusion injuries which resolved. The judge found in favor of the employer and carrier, ruling that the claimant’s injuries were limited to contusions and had fully resolved. The claimant appealed the case to the Workers’ Compensation Appeal Board, arguing the judge capriciously disregarded the evidence. The Board held that the claimant’s appeal was a veiled collateral attack on the workers’ compensation judge’s credibility determinations and affirmed the judge. At issue were potential life-time indemnity benefit payments and over $1 million of medical expenses.

  • Post-concussion syndrome workers’ compensation claim dismissed.

    We successfully defended a machine shop in the litigation of a claim petition involving post-concussion syndrome. The claimant was struck in the head with a wrench while repairing a machine for the employer. The carrier accepted a head laceration by way of medical only notice of compensation payable. The claimant was treated for a laceration to the side of his head and released to return to work. Several months later, he was taken out of work by his treating neurologist for symptoms allegedly related to post concussive syndrome. The claimant then returned to modified duties within new work release restrictions. He abandoned that job several weeks later, alleging he was totally disabled due to post concussive syndrome. We presented surveillance evidence demonstrating the claimant’s ability to perform all activities of daily living. A nationally renowned neurologist testified that, while the claimant suffered a mild concussion at the time of injury, he did not suffer from post concussive syndrome and was fully recovered. The claimant’s co-workers testified that they observed the claimant after the injury, and the claimant was able to continue working with no signs of post concussive problems. We cross examined the claimant, and it was discovered that he was performing work duties on his own in the carpentry field, despite alleging he was totally disabled. The workers’ compensation judge opined that the claimant’s injuries were limited to the head laceration and mild concussion, and then concluded that those injuries had fully recovered. The claimant was due no additional workers’ compensation benefits other than what he had already received. The claim petition for disability was dismissed.

  • Successful defense of law firm in workers’ comp case.

    We successfully defended a Philadelphia-based law firm in litigation surrounding an alleged work injury with resultant post-concussion syndrome. ​The claimant tripped and fell at work, alleging that he struck his head during the fall. He donned sunglasses at the hearing and depositions, claiming his injury led to photophobia and post-concussion syndrome. During discovery, it was determined that the claimant had suffered and was treated for headache symptoms and memory loss prior to the alleged work injury. Surveillance revealed that the claimant did not use sunglasses when carrying out everyday activities. The claimant's medical expert admitted on cross-examination that he was unaware of the claimant's pre-existing medical condition and was not aware of the surveillance evidence when arriving at his opinions and conclusions. The workers’ compensation judge found that the claimant and the medical expert were not credible, leading to the successful resolution of the claim.

Firm Highlights

Thought Leadership

The Tolling Trap: Filing Alone Will Not Toll the Statute Without Good-Faith Service

The Eastern District of Pennsylvania recently reinforced a critical limitation on bad faith claims, holding that a timely filing alone will not preserve a cause of action absent a good-faith effort to serve the original process. The plaintiff had presented a claim for underinsured motorist benefits to his auto insurer. The insurer evaluated the claim and determined that the plaintiff’s accident-related damages did not exceed the bodily injury liability insurance limits of the at-fault driver and denied his claim. Among other claims, the plaintiff sought to present a claim for insurance bad faith under 42 Pa. C.S.A. § 8371, to which a two year statute of limitation applies. He first filed a praecipe for writ of summons before the expiration of the statute of limitation. However, the plaintiff did not attempt to serve the praecipe or writ until after the statute of limitations had expired. Additionally, the service failed as the plaintiff had mailed the original process to an incorrect address. Despite receipt of the Postal Service’s failure to deliver the original process, the plaintiff did not attempt to re-serve the writ. Two months later, the plaintiff filed a complaint and then successfully served that complaint. The insurer sought to dismiss the plaintiff’s bad faith claim as time-barred by the statute of limitations. The district court agreed. Though the plaintiff had filed a praecipe for a writ of summons prior to the expiration of the statute of limitations, the statute is only tolled if there is a good faith effort to serve that original process. In this case, the court determined that the plaintiff had failed to perform a “good faith effort to serve the original process”. Additionally, though the filing and service of a complaint can serve as alternative original process when the lawsuit is commenced by the filing of a praecipe for a writ of summons, the plaintiff filed his complaint after the statute of limitations had expired. The plaintiff’s bad faith claim was therefore determined to be barred by the statute of limitations and dismissed by the court, with prejudice. A key takeaway for the defense is not to assume that the statute of limitations has been successfully tolled by a plaintiff merely because a praecipe for a writ of summons or complaint has been filed prior to the expiration of the statute. A filed complaint or writ is only part of the equation. The defense should carefully review the docket and filings to confirm that the plaintiff also performed the requisite good faith effort to serve that original process. A thorough review of the docket may reveal that the plaintiff failed to make the good-faith service efforts necessary to toll the statute of limitations.

Thought Leadership

Florida Supreme Court Rules Florida Statute §627.70152 Does not Apply Retroactively

In a decision that resolves years of appellate uncertainty and confirms that insurers and insureds alike can rely on the legal framework in place when a policy is issued, the Supreme Court of Florida last week found that Florida Statute §627.70152, which involves an insured’s requirement to provide an insurer with pre-suit notice before filing a suit, cannot be applied retroactively. In Universal Property & Casualty Insurance Company v. Hughes, the Court was presented with the issue of whether the statutory pre-suit notice requirement applied retroactively and whether it would apply to a breach of contract of an insurance policy that was issued before the statute went into effect. Before the Court was an appeal from a homeowner, Ms. Hughes, who sued her insurance carrier, Universal Property & Casualty Insurance Company (Universal) for breach of contract under an insurance policy that was in effect from April 24, 2019 through April 24, 2020. During the policy period, Ms. Hughes suffered a loss and, on May 29, 2019, made a claim for water damage. The carrier investigated the loss and issued payment; Ms. Hughes disputed the payment, finding the amount insufficient for repairs. On July 1, 2021, Florida Statute §627.70152 went into effect, which required insureds to provide notice of intent to initiate litigation against the carrier prior to filing a lawsuit; if an insured filed the lawsuit without complying with §627.70152, a court must dismiss the case without prejudice. On August 4, 2021, Ms. Hughes filed her lawsuit against Universal for breach of contract. Universal moved to dismiss based on her failure to comply with §627.70152. Ms. Hughes contended the notice requirement could not be applied retroactively. The trial court disagreed and dismissed the lawsuit without prejudice, and Ms. Hughes appealed. During the appeal, the Fourth District Court of Appeal, in Cole v. Universal Property & Casualty, 363 So. 3d 1089 (Fla. 4th DCA 2023), ruled that Florida Statute §627.70152 did apply retroactively to policies issued before the effective date of §627.70152. However, the Sixth District Court agreed with Ms. Hughes and overturned the trial court’s ruling, finding the statute could not retroactively apply to policies issued prior to the statute effective date. Thereafter, the other district courts weighed in, with the Third District Court agreeing with the Fourth District Court, and the First, Second and Fifth District Courts agreeing with the Sixth District Court. In resolving the conflict amongst the district courts, the Supreme Court advised “as a general rule, ‘the statute in effect at the time an insurance contract is executed governs substantive issues arising in connection with that contract.’ Hassen v. State Farm Mut. Auto. Ins. Co., 674 So. 2d 106, 108 (Fla. 1996). The Court applied the two-step test when deciding whether a statute has retroactive application: “First, the Court must ascertain whether the Legislature intended for the statute to apply retroactively. Second, if such an intent is clearly expressed, the Court must determine whether retroactive application would violate any constitutional principles.” Menendez v. Progressive Exp. Ins. Co., 35 So. 3d 873, 877 (Fla. 2010). In analyzing the Legislature’s intent, the Court must determine whether the Legislature has manifested a clear command for retroactivity in the statutory text.  In review of the statutory text, the Court found nothing in the language of the statute to indicate that the phrase “all suits” was serving another purpose of expanding its reach to suits based on policies that both predate and postdate the enactment of the statute. Buis v. Universal Prop. & Cas. Ins. Co., 394 So. 3d 738, 741 (Fla. 2d DCA 2024). Further, the Court noted the statute has an effective date, which has long been considered to be evidence against retroactive application of a statute. The Court concluded that, on its face, no provision of §627.70152 speaks to application of the statute to insurance policies issued before the statute’s effective date and therefore, the Legislature did not clearly command retroactivity of the statute to include insurance policies issued prior to the enactment of the statute. The Court briefly reviewed Universal’s argument that the presuit notice requirement was procedural, not substantive, and therefore should be applied retroactively; however, the Court agreed with the Sixth District Court’s finding that, in its entirety, §627.70152 transformed an insured’s ability to sue an insurance company under a property insurance policy and an insurer’s obligations to respond to and pay insurance claims, thus making the requirement a substantive change. The Court thereby upheld the decision of the Sixth District and disapproved the decision of the Fourth District in Cole.

Thought Leadership

Commonwealth Court Reaffirms the Constitutionality of Act 111's IRE Provisions

In this case, the claimant sustained a work injury of January 6, 1994, which was acknowledged by Notice of Compensation Payable (NCP). After the claimant’s receipt of 104 weeks of temporary total disability benefits, the employer filed a Request for an Impairment Rating Examination (IRE). The IRE was performed in May 2023 and the IRE physician found that the claimant had a 5% whole person impairment, under the AMA Guides. The employer filed a Petition based on the IRE results, and the Petition was granted by the WCJ. During litigation, the claimant argued that the IRE provisions of Act 111 (Section 306(a.3) of the Act) were not applicable to her injury, since it predated June 24, 1996, the date Act 57 went into effect, and that the IRE provisions were unconstitutional. The Workers’ Compensation Judge (WCJ)) granted the Petition and the Board affirmed. On appeal to the Commonwealth Court, the claimant argued that Act 111 violated the nondelegation doctrine and that its retroactive application to the claimant’s injury was unconstitutional. The court rejected the arguments on the basis that they had already found the same arguments without merit in multiple, prior cases. The court also addressed an argument made by the claimant that Act 111 was procedurally defective under the Pennsylvania Constitution because it was only considered on two days in each House after having undergone amendments and reassignments. The court noted that the Pennsylvania Constitution requires every bill to be considered on three different days in each House. The claimant maintained that, according to the legislative history, the bill did not receive three separate days of consideration from each House when it was assigned a new bill number. The court pointed out, however, that the bill number, H.B. 1840 remained constant and was considered on three occasions by the House. Further, the court concluded that minor amendments to the bill were germane to its original subject, which was to modify the Act’s IRE process, in accordance with Protz II.