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Poole Truck Line Inc. v. Commonwealth of Kentucky2/10/1995
AFFIRMING
HOWERTON, JUDGE. This appeal involves a Board of Claims decision that was affirmed by the Fayette Circuit Court. Though it found that the Commonwealth had been negligent in designing a highway intersection, the Board dismissed an indemnity action brought by Poole Truck Line, Inc. on the ground that such claims were no longer cognizable under the 1986 amendments to KRS 44.070(1). Poole argues that indemnity claims are neither collateral nor dependent and remain cognizable under the Board of Claims Act. Alternatively, it contends that if KRS 44.070(1) is found to preclude indemnity claims against the Commonwealth, then the statute is unconstitutional. We find no error and affirm.
We have reviewed the briefs and the applicable law and are in agreement with the trial court in all respects. Because Judge Noble's opinion is an excellent statement of the law on this issue, we adopt it as our own and set it out below.
This case arises out of an accident which occurred on August 27, 1986 in Laurel County, Kentucky. On this date, a truck driven by Jessie Dorsey and owned by Poole Truck Line, Inc. (Poole) collided with a log truck driven by William Vaughn at the intersection of Ky. 30 and Ky. 490. Both drivers died as a result of the accident.
On May 12, 1987, the estate of William Vaughn filed a wrongful death action against Poole seeking damages attributable to the destruction of decedent's earning power and other economic losses. (Orleen Vaughn as executrix of the estate of William Vaughn, et al v. Poole Truck Line, Inc., Laurel Circuit Court - Division I, Civil Action No. 91-C-260).
In this action, Poole maintained that the accident was caused by the faulty design and construction of the intersection. Poole moved to join the Transportation Cabinet as a party to the suit, alleging that the Transportation Cabinet was negligent in designing the intersection, thereby causing the accident. The motion was denied on grounds of sovereign immunity and that a negligence action against the State must originally be brought before the Board of Claims pursuant to KRS 44.070, et seq.
After its motion was denied, Poole settled with William Vaughn's estate. Pursuant to an agreement reached on December 29, 1988, Poole paid decedent's estate the sum of $275,000.
On August 29, 1988 Poole filed a claim with the Board of Claims against the Commonwealth of Kentucky, Transportation Cabinet and Department of Highways (Poole Truck Lines, Inc., et al v. Commonwealth of Kentucky, et al). In this action, Poole sought indemnification or contribution for the amount it paid pursuant to the settlement agreement entered into with the Vaughn estate. In addition, both Poole and the Vaughn estate sought recovery for damages suffered as a direct result of the accident.
The Board dismissed the claims brought by Poole and the Vaughn estate for damages suffered as a direct result of the accident. These claims were filed more than one year after the cause of action accrued. Therefore, they were barred by the statute of limitations as set down in KRS 44.110. However, the Board did not dismiss the claim for indemnification brought by Poole. A cause of action for indemnification accrues when payment is made to an injured party, not at the time of the underlying accident. Commonwealth, Dept. of Transportation v. All Points Const. Co., Ky. App., 566 S.W.2d 171, 173 (1977). Therefore, the indemnity action was not barred by expiration of the one year statute of limitations period.
A hearing on the remaining claim was held before an officer of the Board of Claims on December 2nd and 3rd, 1991 in Lexington, Fayette County, Kentucky. Findings
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