Brenda C. Osborne v. Steven H. Keeney Carolina Casualty Insurance Company and Monitor Liability Managers, Inc…

Summary

The court reversed and remanded a legal-malpractice judgment because the trial court used the suit-within-a-suit method but failed to instruct the jury on the underlying pilot-negligence claim, leaving causation unresolved. The court also abolished Kentucky's physical-impact rule for emotional-distress claims, requiring proof of general negligence, a severe or serious emotional injury, and expert medical or scientific evidence. It held that lost punitive damages from the underlying action are not recoverable against the negligent attorney, although punitive damages based on the attorney's own grossly negligent conduct remain available. Justice Venters, joined by Justice Scott, concurred in eliminating the impact rule and requiring a suit-within-a-suit trial but would have allowed recovery of lost punitive damages as compensatory damages.