Jim and Carrie Carroll at Carroll and Carroll, P.C. represent the injured people of Pennsylvania and New York in Bradford, Sullivan, Tioga, Susquehanna, and Chemung counties in personal injury, premises liability, slip and fall, automobile accident and workers’ compensation cases Jim and Carrie Carroll at Carroll and Carroll, P.C. represent the injured people of Pennsylvania and New York in Bradford, Sullivan, Tioga, Susquehanna, and Chemung counties in personal injury, premises liability, slip and fall, automobile accident and workers’ compensation cases
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Personal Injury

    11/19/2008
    James R. Carroll, Jr., Esquire
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    Superior Court Holds that Restitution Is Not Covered By Insurance

    The Pennsylvania Superior Court, on November 18, 2008, issued a decision in Brethren Mutual Insurance Company v. McKernan where the court holds that an insured may not seek reimbursement from his insurer for a criminal restitution award resulting from criminal prosecution.

    The court notes that to allow this would run counter to the public policy of restitution which is to help the convict rehabilitate by impressing upon him in some degree the scope of the damages inflicted by his criminal conduct. The court makes sure to note that the decision should "not in any way be interpreted as affecting the law regarding insurance coverage available in civil actions based upon conduct which creates civil as well as criminal responsibility."

    The court also writes in footnote 12 that, as a corollary, as part of the sentencing scheme the defendant can be directed to make a payment for restitution even though the victim has already been paid through a civil settlement or when the victim receives compensation from the victim's insurer for the loss sustained.

    Thanks to Scott Cooper, Esquire for this information.
    Labels: case law, pennsylvania superior court


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