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Case Law Alerts

Pennsylvania Superior Court Refines Co-Employee Immunity

Brown v. Gaydos, 2026 WL 450635 (Pa. February 18, 2026)

April 1, 2026

by Benjamin M.H. Goshko

In this matter, the plaintiff was seriously injured while operating a skid steer. The skid steer was owned by the defendant personally, but was loaned to the defendant’s separate business entity, which the plaintiff worked for. The plaintiff filed an uncontested worker’s compensation claim against the business, but then brought suit against defendant-owner for claims related to a lack of maintenance of the skid steer. The defendant-owner sought summary judgement, arguing he was the plaintiff’s ‘co-employee’ and immune from suit pursuant to 77 P.S. § 72.

The Pennsylvania Supreme Court held that for 77 P.S. § 72 to apply, the injury must be caused by negligence that occurred within the co-employee’s course and scope of his employment; indicating while not expressly stated, it is implicit to the statute. In the instant case, the defendant’s personal maintenance of the skid steer occurred outside of the course and scope of the defendant’s operation of his business. Thus, claims related to the maintenance of the skid steer would be separate from those concerning the operation of business, and therefore, not subject to immunity under 77 P.S. § 72.  

This holding narrows co-employee immunity for negligence under the Worker’s Compensation Act to only those injuries caused by a co-employee while in the course/scope of their employment. This strengthens opportunities for employee-plaintiffs to file suits against owners who operate multiple entities.

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Appellate Division Affirms Dismissal of Legal Malpractice Counterclaim Against Martin Law Firm

In Martin v. Loury, 2026 N.J. Super. Unpub. LEXIS 1617 (App. Div. July 15, 2026), Martin Law Firm represented Kirk Loury in an employment matter Mr. Loury filed against his former employer, Concord Equity Group Advisors LLC (“Concord”). The allegations included, among other things, that Loury was not fairly compensated for his employment with Concord. After a bench trial finding in Loury’s favor, the Appellate Division remanded this matter in February 2016 for a second trial. During the second trial, Concord CEO, Lee Argush, testified to lower compensation estimate than first trial. On remand, the second trial judge awarded Mr. Loury the same damages as the first judge, finding Mr. Argush not credible. After the findings during the second trial, Martin Law Firm filed an action against Mr. Loury to recover legal fees and costs of representing Mr. Loury in a second bench trial and Mr. Loury filed a counterclaim against Martin Law Firm for legal malpractice, alleging he should have received an even higher award in the second bench trial. In this allegation, Mr. Loury, through his expert, claimed that Martin Law Firm should have recalled Mr. Loury to the stand to rebut Mr. Argush’s testimony to allege an alternative theory of damages. Mr. Loury’s expert admitted that the second judge already rejected Mr. Argush's theory and accepted Loury's damages theory. The trial court barred Mr. Loury’s expert and dismissed Loury's counterclaim with prejudice before convening the collection trial, and the jury ruled in Martin Law Firm’s favor. Mr. Loury appealed the trial court's pretrial rulings barring his liability expert from testifying in support of his legal malpractice counterclaim, denying his motion for summary judgment on that counterclaim, and denying his motion to amend his counterclaim by adding attorney Joseph A. Martin as a codefendant. In affirming the trial court’s decision, the Appellate Division held that the trial court properly excluded Loury’s expert testimony in the counterclaim against Martin Law Firm because the expert could not explain how calling Loury as a rebuttal witness would have increased damages when the second judge already rejected Mr. Argush's testimony and accepted Loury's damages theory, making the expert’s causation opinion speculative. The Appellate Division also held that the trial court properly denied Mr. Loury's summary judgment motion on his malpractice counterclaim because reasonable minds could differ on whether Mr. Martin's alleged failures would have changed the second judge's damages award, given the judge already found Mr. Argush not credible, creating genuine factual disputes precluding summary judgment. Also, the Appellate Division held that the trial court properly denied Loury's May 2023 motion to add Joseph Martin individually because the statute of limitations expired in February 2022, six years after the 2016 appellate remand when Mr. Loury incurred new legal costs, and relation back did not apply because Mr. Loury knew Mr. Martin's identity throughout and strategically chose to sue only Martin Law Firm in his 2019 counterclaim.