P & R Welding & Fabricating v. Workmen's Compensation Appeal Board

OPINION OF THE COURT

CASTILLE, Justice.

The sole issue on appeal is whether the “gross method” or the “net method” should be utilized in calculating an employersVworkers’ compensation insurers’ subrogation rights and liabilities pursuant to Section 319 of the Workers’ Compensation Act, 77 P.S. § 671, with respect to an employee’s recovery in a third-party tort action. Because we hold that the gross method should be utilized in this situation, we affirm the order of the Commonwealth Court.

The relevant facts to this appeal are not in dispute. On July 28, 1985, appellant suffered a work-related…