Veronica Jewell v. Kentucky School Board Association

Summary

The Supreme Court of Kentucky held that an injured worker who received an assignment of her workers’ compensation carrier’s subrogation rights could not enforce those rights against her own underinsured motorist provider. The court also upheld an offset for workers’ compensation benefits without credit for the claimant’s attorney fees and expenses, but reinstated the trial court’s deduction of only the basic reparation benefits actually paid rather than the full amount available. The judgment otherwise affirmed the Court of Appeals’ remand for recalculation of damages.

Holdings

1. An injured worker who receives an assignment of her workers' compensation carrier's subrogation rights may enforce those rights against a person legally liable for damages, but may not enforce them against her own UIM provider because the UIM provider's obligation arises from contract rather than legal liability for the tortfeasor's damages.
2. Attorney's fees and expenses incurred by the injured worker may not be offset against the UIM provider's credit for workers' compensation benefits.
3. The trial court properly deducted only the $333.45 in basic reparation benefits actually paid rather than the full $20,000 available under the policy because the Court of Appeals could not reverse on the basis of an unresolved factual issue when no party requested findings of fact as required by CR 52.04.

Questions Presented

1. Whether an injured worker who receives an assignment of her workers' compensation carrier's subrogation rights may enforce those rights against her own UIM provider.
2. Whether attorney's fees and litigation expenses incurred by the injured worker may be offset against the UIM provider's credit for workers' compensation benefits.
3. Whether the judgment had to be reduced by the full $20,000 in available basic reparation benefits or only by the $333.45 actually paid.

Disposition

reversed_and_remanded