On Aug. 6, 2011, Melissa and Chuck Kersnick, principal owners of K-2 Catering, LLC, had a party at their home. The Kersnicks' son, Zachary Kersnick, was instructed to give guest rides on the utility vehicle. When giving 16-year-old Haley Belt a ride, the vehicle flipped and rolled, injuring both Haley and another passenger, Luke Sivori. Haley sustained crushing and degloving injuries to her ankle and foot, requiring 13 surgeries to repair her foot. The Kersnicks had a homeowner's insurance policy through Employers Mutual Insurance Company/Hamilton Mutual Insurance Company (EMC) with $ 500,000 limits and K-2 Catering was insured through a $ 1,000,000 commercial liability policy with Cincinnati Insurance Company (CIC). The utility vehicle had been purchased on Friday evening, Aug. 5, 2011. Haley's injuries incurred at least $ 400,000 in medical expenses, but CIC denied responsibility, claiming the utility vehicle was owned personally by the Kersnicks and that the party - a birthday celebration for Melissa Kersnick - was a personal, not a business event. The Kersnicks claimed that the utility vehicle had been purchased for the business and that the party had business purposes as well as personal purposes. Due to mounting medical bills and CIC's denial of the claim, the Belt family declared bankruptcy in July of 2013.

On Dec. 1, 2011, CIC filed a complaint for declaration of rights against K-2 Catering, LLC; Melissa Kersnick; Patrick Kersnick; Zachary Kersnick; Haley Belt; Dawn Belt; Scott Belt; EMC; and the Sivoris in the Bullitt County Circuit Court, Kentucky. After zero offers, the Belts filed a separate negligence action against K-2 and the Kersnicks on July 12, 2012, in the same court, later adding claims against CIC and EMC. The Belts claimed that CIC's actions in failing to pay her claim constituted bad faith and violated Kentucky's Unfair Claims Settlement Practices Act.

On Feb. 28, 2014, the court entered an order finding that coverage existed under both the CIC and EMC policies. CIC and EMC agreed to pay policy limits, and only the bad faith claims against CIC and EMC remained. EMC subsequently settled with Belt. On March 24, 2016, Judge Rodney Burress denied both Belts' and CIC's motions for summary judgment. The action proceeded to a jury trial, and on July 1, 2016, the jury returned a verdict awarding $ 1,000,000 for Haley Belt's emotional pain and mental anguish; $ 20,000 for Melissa Kersnick's emotional pain and mental anguish; $ 20,000 for Chuck Kersnick's emotional pain and mental anguish; $ 43,472.39 for Belt's litigation costs; and $ 3,500,000 in punitive damages to Haley Belt, for a total award of $ 4,583,472.39.

Plaintiff was represented by Jennifer Moore and Emily A. DeVuono of Grossman & Moore PLLC, and Donald S. Battcher of Battcher Law Office, PSC.

Lexis Advance subscribers can view the full summary here: Haley Belt, et al., v. Cincinnati Insurance Company, et al.; 2016 Jury Verdicts LEXIS 5177.

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