Healthcare litigators secure a defense verdict for a hospital client in a premises liability suit

Healthcare and Long-Term Care Group Member Stuart T. O’Neal, III and Associate Harry P. McGrath, Jr., obtained a defense verdict for a hospital client in a premises liability action in Philadelphia County. Following a detailed background investigation, Messrs. O’Neal and McGrath introduced key witness testimony of the alleged accident which undermined all allegations of negligence against the hospital. At the time of arbitration, the panel attributed no liability to the facility and entered a defense verdict.

Note: The results obtained in a particular case are heavily dependent on the facts and the law specific to that case.

ATTORNEY BLOG: Two recent Commonwealth Court decisions show the need for thorough investigations involving alleged injuries sustained on employer premises

By: Joseph C. Romano, Esq.

The Commonwealth Court recently issued two decisions relating to issues involving course and scope of employment and premises liability: Ace Wire Spring and Form Co. v. WCAB (Walshesky), 29 PAWCLR 110 (Pa. Commw. 2014) and PPL v. WCAB (Kloss), 29 PAWCLR 112 (Pa. Commw. 2014). Both of these decisions underscore the importance of an early and thorough investigation prior to acceptance or denial of an alleged injury.

In Walshesky, the Commonwealth Court affirmed the decision of the Workers’ Compensation Judge and Workers’ Compensation Appeal Board, determining that the claimant sustained a left-sided stroke and paralysis due to a fall in the employer’s parking lot while furthering the business affairs of the employer. The evidence of record indicated that the claimant arrived at work sometime between 6:30 and 7:30 a.m., before his 8:00 a.m. shift. Upon arriving, the claimant entered the employer’s building to retrieve uniforms, walked to his car to place the uniforms inside the vehicle, then slipped and fell on ice while returning to building. Testimony revealed that the claimant and other employees routinely arrived early for work.

Before the Commonwealth Court, the employer continued its argument that the claimant was not within the course and scope of his employment as he arrived at an unreasonable time prior to the start of his shift (approximately 90 minutes prior). The court disagreed, finding that the evidence did not establish that the claimant’s presence on his employer’s premises between thirty (30) to ninety (90) minutes before his work shift was an unreasonable amount of time before his shift began.

In making its decision, the court held that there is not a bright line test for assessing how long prior to the commencement of a scheduled shift is unreasonable. Instead, “the exact amount of time does not appear to be as important as the claimant’s purpose or activities during that time.” The court then considered the claimant’s purpose for being there, retrieving uniforms, and the fact that the claimant and other employees routinely arrived early for their respective shifts. Finally, the court did not find any credible evidence to demonstrate that the claimant abandoned his employment, engaged in something entirely foreign thereto, acted contrary to any positive orders of his employer, or was a trespasser within the time leading up to his shift.

In Kloss, the Workers’ Compensation Judge and Appeal Board determined that the claimant, a steno clerk, had successfully proven that she was in the course and scope of her employment when she fell, following her shift, in a restricted use parking garage that was physically connected to the employer’s premises. However, upon review, a majority of the Commonwealth Court reversed the Appeal Board’s and Workers’ Compensation Judge’s rulings.

The evidence revealed that the claimant parked in a nearby parking garage that was leased to the employer and one other business, but was not available for public use. The parking garage was not owned nor operated by the employer, but the employer did pay a pro rata share of the electric bill, based on occupancy of its employees. Employees of PPL also received a parking subsidy for utilizing that garage, as well as one other one, but were not required to park in either garage. A transportation subsidy was also available for the use of public transportation. Additionally, the parking lot was connected to the PPL building by a skywalk owned by PPL.

On the date of the incident, the claimant used her employer-issued swipe card to enter the parking garage. The claimant parked on the second floor and utilized an elevator to go up to the third floor where she entered the employer’s building through the skywalk. Following her shift, the claimant exited the building onto a public street and walked to the parking garage. Upon entering the garage, the claimant started walking toward the elevators when she slipped and fell, injuring her right arm and shoulder.

In reversing, the Commonwealth Court determined that the parking garage was not a part of the employer’s premises. In so finding, the court held that the parking subsidy was merely an employment benefit and immaterial to the determination of whether the parking lot constituted the employer’s premises. The employer did not require employees to park in the lot. Rather, parking in this lot was optional and subject to availability. Additionally, the employer offered subsidized parking at another parking lot, as well as a subsidy for bus transportation. The majority further held that the claimant failed to establish that her injury was the result of a condition of the premises, as the claimant testified that she tripped over her own feet while walking to the elevator.

These recent decisions by the Commonwealth Court highlight the necessity for a thorough investigation of an alleged injury when issues such as course and scope of employment and premises liability are present. When reduced to the very basics, each case involved an injury in a parking lot before and after a work shift. However, the specific facts crucial to each case separate a compensable work incident from a non-compensable work incident. In each instance, the Commonwealth Court undertook an intensive factual review in making its determination.

With that in mind, it is imperative for employers to thoroughly investigate all alleged injuries and communicate as much information as possible to their insurer or third-party administrator. The communication of these facts is crucial when making a determination to accept or deny a claim. As an insurer or third-party administrator, it is equally important that you attempt to obtain as much information as possible to determine the potential liability or defense strategy and communicate that information with defense counsel.

For more information on investigations, premises liability or other workers’ compensation-related matters, contact attorneys of the Burns White Workers’ Compensation Group at 412-995-3000 or email Joseph C. Romano at jcromano@burnswhite.com.

Healthcare Group secures dismissal of RICO claim for a healthcare system client

Member Stuart T. O’Neal, III and Associate Sasha E. Miller of the Healthcare and Long-Term Care Group obtained a dismissal for a healthcare system client in a claim brought under the Racketeer Influenced and Corrupt Organizations Act (RICO). The plaintiff, a former patient, filed amended complaints of conspiracy and later RICO against our client and four other defendants after not entering a settlement from an initial claim made several years prior. In the initial complaint, the plaintiff alleged causes of action for wrongful death, a survival claim, a bodily injury claim and negligent infliction of emotional distress after she gave birth to a stillborn baby.

In August 2013, the plaintiff filed her first amended complaint in the Court of Common Pleas in Philadelphia County, alleging that a conspiracy between the named defendants in her first amended complaint led to a reduction in the amount of her 2009 settlement and a delay in receiving that settlement. The plaintiff further alleged that in 2004, two of the named defendants had formed a partnership with the hospital where she had given birth, with the intent of maximizing profits by allegedly minimizing expenses and evading claims for medical malpractice. The plaintiff also alleged that the named defendants had then conspired to devalue her settlement, altered documents, tampered with witnesses, and arranged for a specific judge to take over the case. The case was later moved to the U.S. District Court for the Eastern District of Pennsylvania.

In June 2014, Judge Petrese B. Tucker, C.J. of the U.S. District Court for the Eastern District of Pennsylvania dismissed all claims with prejudice, stating the plaintiff lacked standing, and her allegations of conspiracy were little more than an attempt to improperly re-litigate her medical malpractice claim.

Note: The results obtained in a particular case are heavily dependent on the facts and the law specific to that case.

LEGAL UPDATE: Commonwealth Court of Pa. limits authority of PUC to regulate local oil and gas development

By: Kevin R. Green

In a three-to-two split decision on July 17, 2014, the Commonwealth Court of Pennsylvania in Robinson Tp., Washington County v. Com. upheld the constitutionality of three core provisions contained within Pennsylvania’s Marcellus Shale drilling law, Act 13 of 2012. However, the court held as unconstitutional a portion of Act 13, which allowed the Public Utility Commission (PUC) authority to judge municipal ordinances that regulate oil and gas development.

Robinson appeared before the Commonwealth Court after the Pennsylvania Supreme Court’s holding on Dec. 19, 2013, which held several provisions of Act 13 violated the Environmental Rights Amendment of the state constitution, removing Act 13’s preemption over local zoning ordinances and restrictions on municipal regulations of oil and gas resources. The Supreme Court’s decision also removed Act 13’s requirement that the PA Department of Environmental Protection (DEP) issue waivers for certain well setback requirements along with the Act’s express limitations on a municipality’s ability to challenge the DEP’s issuance of the waivers. More about that can be found in a prior update here.

Deciding Robinson on remand, the Commonwealth Court specifically held Act 13 could constitutionally: (1) limit discussions between doctors and patients concerning the propriety information of fracking fluids; (2) authorize gas companies’ use of eminent domain; and (3) implement differing notice requirements as to procedures for gas-well neighbors with public water versus private water. However, the Commonwealth Court rejected the state’s argument that the PUC still has the authority to judge municipal ordinances that regulate oil and gas development after the state Supreme Court ruled in December that Act 13 unconstitutionally limited local governments’ right to say where well sites, compressor stations, and other oil and gas facilities can be located.

The Commonwealth Court’s decision clarifies several limitations of Act 13. First, while Act 13 is permitted to limit discussions between doctors and patients concerning certain proprietary information, the court emphasized that Act 13 does not prohibit a physician from sharing the disclosed confidential and proprietary information with another physician for purposes of diagnosis or treatment, nor does it preclude a physician from including the information in patient records, medical treatment or evaluations, including evaluations based on trade secrets that physicians are required to keep. Second, while Act 13 permitted to authorize gas companies’ use of eminent domain, the court emphasized the provision was limited to a “public utility” that has received a certificate of public convenience from the PUC. Third, although Act 13 requires notice to be given by drilling companies or the DEP for spills in public water systems, no notice requirement exists for spills that take place in private water systems.

Furthermore, the Commonwealth Court held that the PUC no longer has the authority to judge municipal ordinances that regulate oil and gas development. The court’s decision was a consequential byproduct of the Pennsylvania Supreme Court’s prior holding that Act 13 could not limit a local government’s right to designate where well-sites, compressor stations, and other oil and gas facilities can be located. While the state argued that the commission still had an essential role in reviewing ordinances, hearing challenges and determining if local governments are eligible to receive their share of impact fees distributed to communities that play host to drilling operations, the court found the provision unsalvageable after the Supreme Court held the uniform zoning provisions of Act 13 were unconstitutional.

As a result of the Commonwealth Court’s holding, municipalities can regulate locations but not the details of drilling operations that the DEP already regulates. As President Judge Dan Pellegrini wrote for the majority opinion, “Local zoning matters will now be determined by the procedures set forth under the [Municipalities Planning Code] and challenges to local ordinances that carry out a municipality’s constitutional environmental obligations.” Judges P. Kevin Brobson and Patricia A. McCullough wrote separate opinions that partially agreed and dissented from the majority opinion.

For questions or concerns about how the decision might affect Marcellus Shale businesses in the region, contact the Burns White Energy Group.

GROUP BLOG: The impact that Pa. Federal District Court’s legalization of same-sex marriage will have on private employers and businesses

On May 21, 2014, the federal district court in Harrisburg decided Whitewood v. Wolf. The District Court held that it was unconstitutional for Pennsylvania to either prohibit same-sex couples from becoming married or to void same-sex marriages that were legally entered into in other jurisdictions. The Court’s holding in Wolf was only intended to restrict governmental action, and did not pertain to the actions of private citizens. Nonetheless, private businesses and employers in Pennsylvania may be affected.

Click here to read the full post on the Employment Law Blotter.

GROUP BLOG: 10 million reasons for taking a well-reasoned approach to criminal screening policies

How much is a second chance worth?

$10 million?

Sixty cities and counties and twelve states currently comprise the growing “ban the box” movement in which criminal history inquiries have been removed from job applications. However, the movement may soon be tested by an incident in Alexandria, Virginia in which Officer Peter Laboy was shot by taxi driver Kashif Bashir while attempting a routine traffic stop. Officer Laboy filed a lawsuit alleging negligent hiring and negligent entrustment by the Alexandria Yellow Cab Company to the tune of $10 million in damages.

Click here to read the full post on the Employment Law Blotter.

Stuart T. O’Neal pens an article for MD News on how a proposed rule to combat prescription fraud abuse may impact physicians

Healthcare Member Stuart T. O’Neal, III wrote an article for Eastern Pennsylvania MD News addressing a proposed new rule in the Medicare Part D prescription drug program intended to crack down on prescription fraud and abuse, and how it may impact a physician’s practice. Click here and flip to page five to read it.

Seven Burns White attorneys named to Pennsylvania Super Lawyers/Rising Stars lists

PITTSBURGH, May 23, 2014 — Burns White Members David B. White and David A. Damico in the Pittsburgh office, and Member Valerie H. Lieberman and Associate Frank T. Troilo in the Philadelphia office were named to the 2014 Pennsylvania Super Lawyers list, a distinction received by no more than five percent of attorneys practicing in the state. In addition, Members Travis W. Smith and Stephen A. Hall of Pittsburgh and Associate Andrew J. Fuga of Philadelphia were selected for the Rising Stars list.

Named to the Pa. Super Lawyers list since 2004, Mr. White brings to his clients more than 30 years of demonstrated legal experience spanning several industries and areas of litigation including financial services, commercial, products liability, professional malpractice and employment, coupled with practical business acumen and strong leadership skills as a team builder and project manager. Mr. White earned a J.D. degree from Duquesne University.

Mr. Damico, who is a seven-time list maker for Pennsylvania Super Lawyers, brings more than 29 years of litigation experience coupled with business acumen to his corporate clients. Co-Chair of the firm’s Transportation Practice Group, he serves as National Trial Counsel to multiple railroad companies and has tried numerous occupational illness, toxic exposure and catastrophic personal injury cases. Mr. Damico also serves as counsel on behalf of manufacturers and distributors in complex products liability and toxic tort cases. He graduated from the University of Pittsburgh School of Law.

Included on the list for a third consecutive year, Ms. Lieberman is a member of the firm’s Workers’ Compensation Group and serves on the Workers’ Compensation Section Executive Council of the Pennsylvania Bar Association. For nearly 20 years, she has worked with insurance companies, self-insured and uninsured employers from a variety of industries to help reduce their exposure to workers’ compensation claims. Ms. Lieberman received a J.D. from Benjamin N. Cardozo School of Law.

Mr. Troilo, a first-time list maker, defends a diverse array of clients in Pennsylvania and New Jersey in workers’ compensation claims. With more than 24 years of experience, he has worked at several Philadelphia firms developing litigation strategies and counseling employers on issues related to insurance coverage, compliance with federal and state laws and regulations, wrongful discharge and employee resolution options. Mr. Troilo graduated from Temple University’s James E. Beasley School of Law.

The Pennsylvania Rising Stars rating is a distinction given to no more than 2.5 percent of the top up-and-coming attorneys in the state who are either 40 years old or younger, or in practice for ten years or less. Mr. Smith, Chair and Founder of the Medicare Compliance Group, was selected as a Rising Star recipient in 2008 and 2010-2013. Civil litigation and Estate Planning & Administration Co-Chair Mr.Hall was named to the list in 2010-2011 and 2012-13. Mr. Fuga, a first time list maker for Pennsylvania Rising Stars, concentrates his practice in construction law and litigation.

An annual rating service of the Thomson Reuters, Legal division, the Super Lawyers list’s patented, multiphase selection process consists of a statewide survey of lawyers in more than 70 practice areas, independent research to identify outstanding lawyers, evaluation of candidates based on 12 indicators of peer recognition, a panel review by practice area and a discipline check of each candidate.

Nicholas Varischetti named 2014 Fast Tracker by Pittsburgh Business Times

PITTSBURGH, May 19, 2014Nicholas D. Varischetti was named a 2014 Fast Tracker, an annual award honoring local business and nonprofit community leaders who are under the age of 40, by the Pittsburgh Business Times. Mr. Varischetti, along with other award recipients, will be honored on June 25 at the Andy Warhol Museum.

Winners were selected for their successful efforts to grow a business or nonprofit, significantly impacting the growth and scope of their organization. A supplement honoring their achievements will be published in the June 28 edition of the Pittsburgh Business Times.

Mr. Varischetti was nominated by Susan Baker Shipley, Huntington Bank president, Western Pennsylvania & Ohio Valley Region, citing his reputation as being a respected advisor to oil and gas and construction clients in complex deals, partnership in several family-owned businesses, and dedication, support and service to the city through various charitable and nonprofit organizations.

Mr. Varischetti’s area of legal practice focuses on the oil and gas, banking and construction industries. He also has extensive firsthand business experience as a partner in his family’s companies, including minority ownership in the Pittsburgh Steelers. In addition, Mr. Varischetti serves on five nonprofit boards — most notable of which is his role as chairman of Pittsburgh’s Intergovernmental Cooperation Authority, a task force created to find solutions to Pittsburgh’s financial struggles. Other board involvement includes Every Child Inc., Manchester Bidwell Corporation, The Frank Varischetti Foundation, Pittsburgh Urban Magnet Project (PUMP), as well as La Roche College’s Board of Trustees.

For more information on the Fast Tracker’s recognition event on June 25, visit Pittsburgh Business Times.

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