Kentucky River Foothills Development Council, Inc. v. Phirman
504 S.W.3d 11
| Ky. | 2016Background
- Melissa Steffen, a parolee with Bipolar Disorder, was admitted to Liberty Place Recovery Center for Women, a peer-based substance-abuse recovery program administered by Kentucky River Foothills Development Council (Kentucky River).
- During her stay she ran out of medication, left the facility, was later seen by staff at a library, and five months later was found dead by suicide.
- Phirman (administratrix of Steffen’s estate) and guardians of Steffen’s children sued Liberty Place and Kentucky River. Plaintiffs amended to name Kentucky River, the administrative operator.
- Kentucky River moved for summary judgment asserting sovereign (governmental) immunity; the trial court denied the motion, and the Court of Appeals affirmed. The Supreme Court granted discretionary review.
- Kentucky River is a community action agency (originally a private nonprofit designated under federal/state schemes and subject to statutory oversight) and administers Liberty Place, a long-term substance abuse recovery program for women.
- The dispositive dispute: whether Kentucky River is entitled to governmental immunity for its operation of Liberty Place.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Kentucky River is entitled to sovereign/governmental immunity for harms arising from its operation of Liberty Place | Kentucky River is not immune; plaintiffs sued for negligence leading to Steffen’s death | Kentucky River claims governmental immunity because it is a statutorily recognized community action agency performing functions integral to state government | Denied. Kentucky River is not immune for Liberty Place operations because Liberty Place provides substance-abuse treatment, not an integral/statewide governmental function (alleviation of poverty) |
| Whether the Court must resolve immunity based on Kentucky River’s “parentage” (born of an immune governmental parent) | Parentage test applied by lower courts: Kentucky River formed privately and thus lacks immune parentage | Kentucky River argued it should share counties’ immunity due to its statutory role and oversight | Court did not decide parentage: resolved case on the more important “integral state function” prong and declined to reach parentage |
Key Cases Cited
- Comair, Inc. v. Lexington-Fayette Urban County Airport Corp., 295 S.W.3d 91 (Ky. 2009) (establishes two-prong test: parentage and whether entity performs an integral state function)
- Coppage Constr. Co. v. Sanitation Dist. No. 1, 459 S.W.3d 855 (Ky. 2015) (analysis framework: whether function is governmental vs proprietary and whether it is statewide concern)
- Rowan County v. Sloas, 201 S.W.3d 469 (Ky. 2006) (sovereign-immunity questions are legal issues reviewed de novo)
- Kentucky Ctr. for the Arts v. Berns, 801 S.W.2d 327 (Ky. 1990) (integral-to-state-government standard)
- Breathitt County Bd. of Educ. v. Prater, 292 S.W.3d 883 (Ky. 2009) (distinguishing proprietary/private services from governmental functions)
- Marion County v. Rives & McChord, 118 S.W. 309 (Ky. 1909) (historical discussion referenced by lower courts regarding functions performed for the poor)