Journal-Times (Grayson, KY)

Local News

March 6, 2013

KLC loses dismissal motion in flood lawsuit

March 6, 2013 — Attorneys representing all of the parties in a lawsuit stemming from the 2010 floods in Olive Hill appeared in Carter Circuit Court Monday for motion hour.

Motions to dismiss several defendants and to hold discovery had been filed, as well as responses, within the last two months.

Kentucky League of Cities, Inc., and Kentucky League of Cities Insurance Services, Inc., and Kentucky League of Cities Insurance Agency, Inc., had filed a motion Jan. 16 to be dismissed as defendants in the case.

Legal counsel for the group claimed that Kentucky League of Cities Insurance Service Association was the only party named in the original suit that could be considered a proper party to the action.

According to the motion, KLC, Inc. has no claims handling responsibilities and therefore no obligation to pay any claims in the case.

Attorneys Mike Fox and Reid Glass, representing the flooded property owners, filed a motion requesting that the defendant motion be denied.

To back up their argument, the plaintiffs produced a contract, allegedly between KLC, Inc. and Collins & Company, Inc., a third-party insurer.

According to the contract, KLC, Inc. “shall at all times provide funds adequate for the payment of claims.”

The contract also states that Collins is employed in a capacity as an agent of KLC and that “KLC shall retain ultimate control and responsibility...and the final authority over decisions and policies regarding claims administration.”

Christina Vessels and Barry Miller, attorneys for the defendants, claimed that they did not think the contract was important nor did they know where it had come from.

“That contract bolstered their (Fox and Glass) assertion,” Circuit Judge Rebecca Phillips said in denying the motion to dismiss those defendants.

Phillips stated that discovery would also be necessary.

“There needs to be some verification of the inner workings and relationships of all of these different entities,” the judge added.

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