Articles Posted in Kentucky Supreme Court

by
Hospital purchased from Assurance Company of America a "builder's risk" insurance policy and contracted with Wehr Constructors for installation of subsurfaces and floors as part its project. After installation, a portion of the floors and subsurface done by Wehr was damaged. Hospital sought recompense under the builders risk policy. Assurance denied the claim. Meanwhile, Wehr and Hospital settled on Wehr's breach of contract claim. As part of the settlement, Hospital assigned to Wehr any claim Hospital had against Assurance arising out of the policy. Wehr, as Hospital's assignee, then sued Assurance in federal district court. Assurance moved for judgment on the pleadings, invoking the policy's anti-assignment provision and arguing that it had not consented to the assignment. The district court requested certification to answer a question of Kentucky law. The Supreme Court concluded that under Kentucky law, a clause in an insurance policy that requires the insured to obtain the insurer's prior written consent before assigning a claim for an insured loss under the policy is not enforceable or applicable to the assignment of a claim under the policy where the covered loss occurs before the assignment, and that such a clause would, under those circumstances, be void as against public policy. View "Wehr Constructors, Inc. v. Assurance Co. of Am." on Justia Law

by
Miguel Rivera, a fifteen-year-old unauthorized alien, sought workers' compensation benefits from Abel Verdon Construction for injuries sustained when he fell through a hole in the second floor of a home that Verdon was constructing. The ALJ found Rivera to be Verdon's employee and awarded Rivera partial disability benefits. The Workers' Compensation Board affirmed Rivera's partial disability award. The court of appeals affirmed, rejecting Verdon's argument that the Immigration Reform and Control Act (IRCA) preempts the application of Ky. Rev. Stat. 342, which provides workers' compensation coverage to employees without regard to the legality of the employment relationship, to this claim based on the claimant's status as an unauthorized alien. The Supreme Court affirmed, holding that an employment relationship existed between Rivera and Verdon and that the IRCA does not preempt a workers' compensation law that covers unauthorized aliens. View "Abel Verdon Constr. & Acuity Ins. v. Rivera " on Justia Law