Guaranty Fund Must Pay for Self-Insured Employer's Safety Violations

In a case of first impression, the Kentucky Supreme Court last week ruled that the state Coal Employers Self-Insurance Guaranty Fund can be held liable for a defunct mining company’s intentional violation of safety regulations. The unanimous court said that the Guaranty Fund’s statutory duty to assume the liabilities of self-insured employers for the payment of workers’ compensation benefits includes enhanced awards under Kentucky Revised Statutes Section 342.165(1). The case was McCoy Elkhorn Coal Corp. v. Sargent. Farley Sargent II worked for the McCoy Elkhorn Coal ...