A Kentucky appeals court threw out a nearly $164 million verdict against GEICO, ruling that the insurer cannot be held vicariously liable for the negligence of a tow truck driver subcontracted by the insurer.
The Kentucky Court of Appeals issued its opinion Friday in GEICO Casualty Company v. Jilianne Warner, a case arising from a December 2017 crash in Louisville, Kentucky. Christian Worley, an employee of Midnight Recovery, a Sellersburg, Indiana-based towing company, rear-ended Ms. Warner’s stopped vehicle at roughly 65 mph to 70 mph while responding to a GEICO roadside assistance call. Mr. Worley admitted his negligence caused the crash, which left Ms. Warner, then 27, quadriplegic.
A Jefferson Circuit Court jury awarded Ms. Warner nearly $164 million in damages, finding GEICO vicariously liable under a legal theory that towing is an “inherently dangerous” activity exempt from the usual rule shielding companies from liability for independent contractors’ actions…