On July 15, 2008 the District Court for the Western District of Pennsylvania (Lancaster, J.) held in Shaw v. State Farm Insurance Company that an insured is not allowed to recover UM/UIM benefits under his insurance policy with State Farm for injuries sustained during the course and scope of his employment due to the negligence of a co-worker. Shaw was injured in a work related accident when the garbage truck he was riding in was negligently driven by a co-worker. He sought and received workers compensation benefits and did not sue his employer or co-worker due to immunity under the Workers Compensation Act. He then sought UM/UIM benefits from State Farm which denied the claim by arguing that the benefits were not "legally entitled" and thus Shaw could not recover.
The Court relies mainly upon a not precedential Third Circuit case in Nationwide Mut Ins Co v. Chiao, 186 Fed.Appx. 181 (3d Cir. 2006) and grants State Farm's Motion for Summary Judgment. However, there is no mention or reference to the state trial court decision from Adams County in Brumbaugh v. Erie Insurance Exchange in 2006 where Judge Walker in Franklin County held that an insured was entitled to UM/UIM coverage in the same factual situation.