KY Supreme Court Opinion (06/17/21)(Part 2)

21 Jun 2021 3:16 PM | Kathi McKeown

Mosley v. Arch Specialty Insurance Co.

Docket: 2018-SC-0586-DG 

Opinion Date: June 17, 2021

Judge: John D. Minton, Jr. 

Areas of Law: Insurance Law, Personal Injury

The Supreme Court affirmed the judgment of the court of appeals affirming the trial court's dismissal of this third-party bad-faith case against Arch Specialty Insurance Company and National Union Fire Insurance Company, holding that there was no error. At issue was whether the two insurance companies acted in bad faith while mediating negligence and wrongful death claims asserted by Plaintiff against the insureds of Arch and National Union after her husband died in a coal mining accident. The Supreme Court affirmed, holding that the trial court did not err in dismissing the third-party bad-faith claims and that there was no other error in the proceedings below.


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United States Liability Insurance Co. v. Watson

Docket: 2019-SC-0475-DG 

Opinion Date: June 17, 2021

Judge: Hughes 

Areas of Law: Insurance Law, Personal Injury

The Supreme Court reversed the opinion of the court of appeals reversing the decision of the circuit court granting summary judgment in favor of Defendant pursuant to Kentucky's Unfair Claims Settlement Practices Act (UCSPA) and dismissing Plaintiff's bad faith claim as barred by the statute of limitations, holding that the complaint was untimely. Plaintiff was injured in a motor vehicle accident and settled his dram shop liability claim against Pure Country, LLC, an establishment insured by United States Liability Insurance Company (USLI). Several years after settling, Plaintiff brought a bad faith claim against USLI under the UCSPA. The circuit court concluded that the action was untimely and granted summary judgment for Defendant. The court of appeals reversed. The Supreme Court reversed, holding (1) the trial court correctly determined that the bad faith claim against USLI was barred by the statute of limitations; and (2) the USCPA claim was not saved by relation back to an earlier filed or proposed pleading.


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Johnson v. Honorable Stockton Wood

Docket: 2020-SC-0588-MR 

Opinion Date: June 17, 2021

Judge: Michelle M. Keller 

Areas of Law: Medical Malpractice, Personal Injury

The Supreme Court affirmed the judgment of the court of appeals denying Plaintiff's petition for a writ of mandamus to direct Judge Stockton Wood of the Fleming Circuit Court to issue various orders in her favor, holding that a writ of mandamus was inappropriate. Plaintiff filed a third amended complaint against radiologists and health care providers alleging medical negligence, spoliation, abuse of process, obstruction of justice, and other claims. During a two-month period the trial court entered fourteen separate orders. Plaintiff sought a writ of mandamus directing the court to issue orders in her favor. The court of appeals denied the petition for a writ of mandamus. The Supreme Court affirmed, holding that an adequate remedy by appeal existed for each of the errors Plaintiff alleged.


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Jewish Hospital v. Honorable Mitch Perry

Docket: 2020-SC-0011-MR 

Opinion Date: June 17, 2021

Judge: Lambert 

Areas of Law: Medical Malpractice

The Supreme Court vacated the order of the circuit court denying Appellant's petition for a writ prohibiting the Jefferson Circuit Court from enforcing its order allowing the use of a root-cause analysis report (RCA) at trial for impeachment purposes, holding that the RCA was privileged. At issue on appeal was whether Ky. Rev. Stat. 311.377, as amended, protected the RCA from being admitted at trial. The trial court concluded that the RCA could be used at trial for the purpose of impeachment. Appellant sought a writ of prohibition, but the court of appeals denied the petition. The Supreme Court reversed and granted a writ prohibiting the circuit court from enforcing its order permitting the admission of the privileged material for impeachment purposes, holding that where this case concerned the potential violation of an applicable privilege, the certain special cases exception was met.

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Thomas v. State Farm Fire & Casualty Co.

Docket: 2020-SC-0061-DG 

Opinion Date: June 17, 2021

Judge: Vanmeter 

Areas of Law: Personal Injury

The Supreme Court affirmed the decision of the court of appeals affirming the order of the circuit court granting summary judgment in favor of State Farm Fire and Casualty Insurance Company in the underlying personal injury case, holding that there was no error. Bessie Perkins began caring for the children of Donald and Julie Thomas and Jeffrey and Elizabeth Renner in the summer of 2015. That fall, the Renner child was diagnosed with shaken baby syndrome. Thereafter, the Thomas child was diagnosed with two leg fractures. The parents brought a negligence action against Bessie and Jerry Perkins. State Farm, as the Perkinses' insurer, filed an intervening complaint arguing that the Perkinses' behavior implicated the "child care services exclusion," relieving State Farm of liability. The circuit court entered a declaratory judgment in favor of State Farm as to both sets of plaintiffs, finding that the child care services exclusion applied. The Supreme Court affirmed, holding that the policy was unambiguous and reasonable.

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Phillips v. Rosquist

Docket: 2018-SC-0671-DG 

Opinion Date: June 17, 2021

Judge: John D. Minton, Jr. 

Areas of Law: Real Estate & Property Law

The Supreme Court affirmed the decision of the court of appeals reversing the trial court's mandatory injunction in this property dispute, holding equitable relief was not available under the circumstances of this case. Plaintiffs, the owners of a residential subdivision lot - Lot 89 - sued Defendants, the owners of an adjoining subdivision lot, claiming trespass and recovery of land adversely held. Years before Plaintiffs owned Lot 89, Defendant excavated a portion of his lot and Lot 89 to allow water from a lake abutting both properties to cover a portion of both lots. Plaintiffs claimed that the action constituted a trespassory occupation of Lot 89. The trial court granted Plaintiffs a mandatory injunction and directed Defendants to backfill Lot 89. The court of appeals vacated the judgment, finding that this action was barred by the relevant statute of limitations. The Supreme Court affirmed on different grounds, holding (1) Plaintiffs never received title to the submerged portion of Lot 89, and therefore could not maintain a claim for trespass, for removal from land or recovery of land adversely held, or to quiet title; and (2) equitable relief was unavailable under the circumstances.


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