Design Highlights
- The Kentucky Supreme Court ruled that Westport Insurance owes nothing in a $28 million malicious prosecution claim against Mr. Virgil.
- The court determined that Mr. Virgil’s personal injury occurred in 1987, aligning with the initial charge, not during his incarceration.
- The ruling emphasized that Westport’s policies excluded coverage for ongoing injuries, categorizing incarceration as collateral damage.
- This unanimous decision establishes a precedent that could affect future malicious prosecution cases and insurance policy interpretations nationwide.
- Legal experts anticipate increased scrutiny of insurance policy limitations following the case’s implications on coverage triggers and continuous injury theories.
In a landmark decision that has left many scratching their heads, the Supreme Court of Kentucky ruled unanimously on December 18, 2025, that Westport Insurance Corporation owes nothing—zip, zero, nada—for a staggering $28 million malicious prosecution claim. Yes, you read that right. A whopping $28 million, and the insurance giant walks away scot-free. Talk about a win for Westport!
The case revolved around a poor guy named Mr. Virgil, who was wrongfully charged in the 1980s. He spent decades—28 years, to be precise—behind bars due to a malicious prosecution. You’d think that after all that suffering, he’d get something from the insurance company, but nope! The court said personal injury happened back in 1987 when he was initially charged. Westport’s policies didn’t cover any ongoing injuries, which is a fancy way of saying his time in prison didn’t count as a new injury.
BatesCarey attorneys Adam H. Fleischer and Kevin F. Harris represented Westport, and they must’ve been high-fiving each other all the way to the bank. The court affirmed earlier rulings that already sided with Westport, including a unanimous appellate decision. So, it wasn’t just a one-off thing; this was a solidified stance against the insureds’ claims.
The irony here? The insureds thought their ongoing incarceration triggered coverage under Westport policies. Spoiler alert: the court wasn’t buying it.
The judges made it clear: personal injury occurred at the time of that initial charge, and anything that followed was just collateral damage—ongoing damages, if you will. It’s like saying, “Hey, you got hit by a car in 1987, and now you’re just complaining about the limp 30 years later.” Sorry, but that limp doesn’t count as a new injury. This ruling highlighted that malicious prosecution occurs at the point when the underlying criminal charges are filed, establishing a clear precedent for future cases. This case demonstrates how umbrella insurance activates only after underlying liability insurance is exhausted, emphasizing the importance of understanding policy triggers and coverage limitations.
This ruling has implications that stretch far beyond Kentucky. It sets a precedent for how insurance triggers personal injury claims, particularly those involving malicious prosecution, will be handled nationwide. Insurers are surely smiling at this one, as it strengthens their arguments against “continuous trigger” theories.
