rights of principal contractors, intermediates, and subcontractors --
Requirement of waiver of remedies for award of contract unlawful.
(1) Whenever an injury for which compensation is payable under this chapter has been
sustained under circumstances creating in some other person than the employer a
legal liability to pay damages, the injured employee may either claim compensation
or proceed at law by civil action against the other person to recover damages, or
proceed both against the employer for compensation and the other person to recover
damages, but he shall not collect from both. If the injured employee elects to
proceed at law by civil action against the other person to recover damages, he shall
give due and timely notice to the employer and the special fund of the filing of the
action. If compensation is awarded or paid under this chapter, the employer, his
insurance carrier, the special fund, the Kentucky coal workers' pneumoconiosis
fund, and the uninsured employer's fund, or any of them, having paid the
compensation or having become liable therefor, may recover in his or its own name
or that of the injured employee from the other person in whom legal liability for
damages exists, not to exceed the indemnity and medical expenses paid and payable
to or on behalf of the injured employee, less a pro rata share of the employee's legal
fees and expense. The notice of civil action shall conform in all respects to the
requirements of KRS 411.188(2).
(2) A principal contractor, intermediate, or subcontractor shall be liable for
compensation to any employee injured while in the employ of any one (1) of his
intermediate or subcontractors and engaged upon the subject matter of the contract,
to the same extent as the immediate employer. Any principal, intermediate, or
subcontractor who pays the compensation may recover the amount paid from any
subordinate contractor through whom he has been rendered liable under this section.
Every claim to compensation under this subsection shall in the first instance be
presented to and instituted against the immediate employer, but the proceedings
shall not constitute a waiver of the employee's rights to recover compensation under
this chapter from the principal or intermediate contractor nor shall the claim be
barred by limitations, if the claim is filed against the principal or intermediate
contractor within one (1) year after a final unappealed order has been rendered by an
administrative law judge determining that immediate employer has insufficient
security to pay the full and maximum benefits that could be determined to be due
him under this chapter. The collection of full compensation from one employer
shall bar recovery by the employee against any other. But he shall not collect from
all a total compensation in excess of the amount for which his immediate employer
is liable. This subsection shall apply only in cases where the injury occurred on, in,
or about the premises on which the principal contractor has undertaken to execute
work or which are under his control otherwise or management.
(3) It shall be considered to be contrary to public policy and unlawful for any owner or
employer to require another employer to waive its remedies granted by this section
as a condition of receiving a contract or purchase order. Furthermore, in selecting
between two (2) or more contractors or suppliers, consideration may not be given by
an owner or employer to whether one (1) contractor or supplier voluntarily waives
its remedies under this section or offers to accept lesser compensation than another
contractor or supplier for that waiver of remedies.
Effective: July 14, 2018
History: Amended 2018 Ky. Acts ch. 40, sec. 12, effective July 14, 2018. -- Amended
2000 Ky. Acts ch. 514, sec. 27, effective July 14, 2000. -- Amended 1996 (1st Extra.
Sess.) Ky. Acts ch. 1, sec. 65, effective December 12, 1996. -- Amended 1994 Ky.
Acts ch. 181, Part 14, sec. 71, effective April 4, 1994; and ch. 495, sec. 1, effective
July 15, 1994. -- Amended 1987 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 53, effective
January 4, 1988. -- Created 1972 Ky. Acts ch. 78, sec. 10, effective January 1, 1973.
Legislative Research Commission Note (7/14/2018). This statute was amended in
Section 12 of 2018 Ky. Acts ch. 40. Subsection (1) of Section 20 of that Act reads,
"Sections 1, 3, and 12 of this Act shall apply to any claim arising from an injury or
occupational disease or last exposure to the hazards of an occupational disease or
cumulative trauma occurring on or after the effective date of this Act."
Notes of Decisions
Dix & Assocs. Pipeline Contractors, Inc. v. Key, 799 S.W.2d 24 (Ky. 1990).
· cites it 24× “KRS 342.700(1), styled "Remedies when third party is legally liable," states "the injured employee may either claim compensation or proceed *32 at law by civil action against such other person to recover damages, but he shall not collect from both.”
AIK Selective Self-Ins. Fund v. Minton, 192 S.W.3d 415 (Ky. 2006).
· cites it 22× “Since the legal fees and expenses exceeded the total amount of benefits paid by Appellant, the trial court ruled that Appellant was entitled to no subrogation recovery pursuant to KRS 342.700(1). KRS 342.700(1) states, in pertinent part, as follows: Whenever an injury for which…”
AIK Selective Self Ins. Fund v. Bush, 74 S.W.3d 251 (Ky. 2002).
· cites it 22× “However, pursuant to KRS 342.700(1), the employer's insurer, AIK, filed an intervening complaint against Dixon to recoup the workers' compensation benefits it had paid and would pay to Bush because of his injury.”
Cantrell Supply, Inc. v. Liberty Mut. Ins. Co., 94 S.W.3d 381 (Ky. Ct. App. 2002).
· cites it 4× “KRS 342.700(1) states: Whenever an injury for which compensation is payable under this chapter has been sustained under circumstances creating in some other person than the employer a legal liability to pay damages, the injured employee may either claim compensation or proceed…”
Cincinnati Ins. Co. v. Samples, 192 S.W.3d 311 (Ky. 2006).
· cites it 12× “1999), precluded application of KRS 342.700(1)'s proscription against double recovery to an action for UIM benefits.”
Mastin v. Liberal Markets, 674 S.W.2d 7 (Ky. 1984).
· cites it 13× “Mastín had obtained a double recovery in violation of KRS 342.700 (Remedies When Third Party is Legally Liable) and a counterclaim for reimbursement of the amounts previously paid pursuant to the worker’s compensation award.”
Burrell v. Elec. Plant Bd. of Franklin, Ky., 676 S.W.2d 231 (Ky. 1984).
· cites it 12× “Burrell, filed an intervening complaint in the action asserting a statutory right of subrogation pursuant to KRS 342.700, for Workers' Compensation benefits paid and payable thereafter.”
Wymer v. JH Props., Inc., 50 S.W.3d 195 (Ky. 2001).
· cites it 4× “) KRS 342.700(1) provides in pertinent part as follows: Whenever an injury for which compensation is payable under this chapter has been sustained under circumstances creating in some other person than the employer a legal liability to pay damages, the injured employee may…”
Labor Ready, Inc. v. Johnston, 289 S.W.3d 200 (Ky. 2009).
· cites it 5× “610(2), KRS 342.700, and KRS 342.615. Known commonly as the "exclusive remedy" provision, KRS 342.”
Fresenius Med. Care Holdings, Inc. v. Mitchell, 507 S.W.3d 15 (Ky. Ct. App. 2016).
· cites it 6× “FRESENIUS IS NOT ENTITLED TO A SUBROGATION CREDIT AGAINST MITCHELL’S TORT RECOVERY Subrogation in workers’ compensation claims is governed by KRS 342.700, which states as follows: Whenever an injury for which compensation is payable under this chapter has been sustained under…”
— Ky. Rev. Stat. § 342.700(1) — 44 cases
Dix & Assocs. Pipeline Contractors, Inc. v. Key, 799 S.W.2d 24 (Ky. 1990).
“KRS 342.700(1), styled "Remedies when third party is legally liable," states "the injured employee may either claim compensation or proceed *32 at law by civil action against such other person to recover damages, but he shall not collect from both.”
AIK Selective Self-Ins. Fund v. Minton, 192 S.W.3d 415 (Ky. 2006).
“Since the legal fees and expenses exceeded the total amount of benefits paid by Appellant, the trial court ruled that Appellant was entitled to no subrogation recovery pursuant to KRS 342.700(1). KRS 342.700(1) states, in pertinent part, as follows: Whenever an injury for which…”
AIK Selective Self Ins. Fund v. Bush, 74 S.W.3d 251 (Ky. 2002).
“However, pursuant to KRS 342.700(1), the employer's insurer, AIK, filed an intervening complaint against Dixon to recoup the workers' compensation benefits it had paid and would pay to Bush because of his injury.”
Cantrell Supply, Inc. v. Liberty Mut. Ins. Co., 94 S.W.3d 381 (Ky. Ct. App. 2002).
“KRS 342.700(1) states: Whenever an injury for which compensation is payable under this chapter has been sustained under circumstances creating in some other person than the employer a legal liability to pay damages, the injured employee may either claim compensation or proceed…”
— Ky. Rev. Stat. § 342.700(2) — 10 cases
Labor Ready, Inc. v. Johnston, 289 S.W.3d 200 (Ky. 2009).
“610(2), KRS 342.700, and KRS 342.615. Known commonly as the "exclusive remedy" provision, KRS 342.”
— Ky. Rev. Stat. § 342.700(l) — 2 cases
Cincinnati Ins. Co. v. Samples, 192 S.W.3d 311 (Ky. 2006).
“1999), precluded application of KRS 342.700(1)'s proscription against double recovery to an action for UIM benefits.”
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