Floyd Cotlar recently earned a favorable decision in an Assigned Claims Plan case.

Floyd Cotlar recently earned a favorable decision in an Assigned Claims Plan case. The injured person had obtained default judgments against the individuals without the written consent of the Assigned Claims Plan pursuant to 40 Pa.C.S. § 2000. The injured person's default judgments extinguished the Assigned Claims Plan's subrogation rights as a matter of law. Clearly, the extinguishment of subrogation rights was proof of actual prejudice. Given that a default judgment had been entered against the individuals prior to arbitration, the arbitrators had no basis for their award on the cross claim. It was a legal nullity as it was procedurally improper. This case has been reported here: Diallo v. Ndiaye, 2007 Phila. Ct. Com. Pl. LEXIS 87 (Pa. C.P. 2007).