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461 S.W.3d 422
Ky. Ct. App.
2015
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Background

  • On Sept. 11, 2012, Bryan Lay (Advanced Cable employee) was struck by a truck driven by an Ervin Cable employee while loading the truck in a gas-station parking lot during a workday.
  • Lay was injured within the course and scope of his employment with subcontractor Advanced Cable and received workers’ compensation benefits from Advanced Cable’s insurer.
  • Advanced Cable and Ervin Cable had a contractor/subcontractor relationship for the project at issue (practically and by the parties’ acknowledgments), though no formal written subcontract was required or dispositive.
  • Lay filed a tort suit against Ervin Cable (the contractor) seeking damages; Ervin Cable moved for summary judgment asserting "up-the-ladder" immunity under KRS 342.690(1) (exclusive remedy in workers’ comp).
  • The Jackson Circuit Court denied Ervin Cable’s summary judgment motion; Ervin Cable appealed the denial based on absolute immunity, an interlocutory order subject to immediate review when immunity is asserted.
  • The court of appeals vacated the denial and directed the trial court to grant summary judgment for Ervin Cable, concluding the contractor was immune under the workers’ compensation exclusive-remedy provision.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Ervin Cable is entitled to "up-the-ladder" immunity under KRS 342.690(1) Lay sought tort damages against Ervin Cable despite receiving workers’ comp from Advanced Cable Ervin Cable argued KRS 342.690 bars tort suits against contractors when the injured worker received workers’ comp from the subcontractor (exclusive remedy) Court held Ervin Cable entitled to up-the-ladder immunity; summary judgment directed for Ervin Cable
Whether denial of summary judgment based on asserted immunity is immediately appealable Not directly argued beyond pursuing tort claim in trial court Ervin Cable asserted denial of immunity is immediately appealable because immunity frees a party from defending the action Court found appellate jurisdiction appropriate and heard the claim (immediate appeal allowed)
Whether lack of a written subcontract or a contention that injury was not work-related defeats immunity Lay disputed aspects (e.g., necessity of written insurance requirement, work-relatedness) Ervin Cable argued practical contractor/subcontractor relationship and that injury was work-related and covered Court rejected Lay’s contentions; factual record established the relationship and work-related injury, so immunity applies

Key Cases Cited

  • Breathitt County Bd. of Educ. v. Prater, 292 S.W.3d 883 (Ky. 2009) (denial of a substantial immunity claim is immediately appealable)
  • Steelvest, Inc. v. Scansteel Serv. Ctr., Inc., 807 S.W.2d 476 (Ky. 1991) (summary judgment standard explained)
  • Coomer v. CSX Transp., Inc., 319 S.W.3d 366 (Ky. 2010) (de novo appellate review of summary judgment)
  • Beaver v. Oakley, 279 S.W.3d 527 (Ky. 2009) (up-the-ladder immunity applies to contractors using subcontractors)
  • United Eng’rs & Constructors, Inc. v. Branham, 550 S.W.2d 540 (Ky. 1977) (practical contractor/subcontractor relationships can confer immunity)
Read the full case

Case Details

Case Name: Ervin Cable Construction, LLC v. Lay
Court Name: Court of Appeals of Kentucky
Date Published: Apr 3, 2015
Citations: 461 S.W.3d 422; 2015 WL 1537619; 2015 Ky. App. LEXIS 43; NO. 2014-CA-001047-MR
Docket Number: NO. 2014-CA-001047-MR
Court Abbreviation: Ky. Ct. App.
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    Ervin Cable Construction, LLC v. Lay, 461 S.W.3d 422