Shelby Mutual Insurance v. Commonwealth

Shelby Mutual Insurance Company, Merchants Insurance Company, Central Mutual Insurance Company, and Nationwide Mutual Insurance Co. paid workers’ compensation claims to employees whose disabilities were caused by compensable injuries in combination with previous injuries. The insurers claim a right to be partially reimbursed out of the Workers’ Compensation Trust Fund (Trust Fund) established by St. 1985, c. 572, § 55, effective December 10, 1985 (St. 1985, c. 572, § 67), or out of the Commonwealth’s general fund.

To encourage employers to hire handicapped workers, the General Court in 1919…