Case Name: David McGREW, Appellant, v. Tonella STONE, Appellee
Court: Supreme Court of Kentucky
Jurisdiction: Kentucky
Decision Date: 1999-08-26
Citations: 998 S.W.2d 5
Docket Number: No. 97-SC-50-DG
Parties: David McGREW, Appellant, v. Tonella STONE, Appellee.
Judges: LAMBERT, Chief Justice; and JOHNSTONE and WINTERSHEIMER, JJ., concur.
Reporter: South Western Reporter Second Series
Volume: 998
Pages: 5–13

Head Matter:
David McGREW, Appellant, v. Tonella STONE, Appellee.
No. 97-SC-50-DG.
Supreme Court of Kentucky.
Aug. 26, 1999.
Michael T. Connelly, Susan M. Mes-chler, Louisville, for Appellant.
Bill V. Seiller, Michael C. Bratcher, Seil-ler & Handmaker, LLP, Louisville, for Appellee.

Opinion:
STUMBO, Justice.
In November of 1992, Appellant was involved in an automobile accident when his car collided with an uninsured vehicle owned by Appellee and driven by a third person, Ailene Carter. Appellee had earlier loaned her car to one Booker Miles, who had a suspended operator's license. Miles had been drinking and asked Carter to drive him home in Stone's car. It was during that trip that the collision occurred.
Appellant filed the instant action in the Jefferson District Court to recover the damages to his automobile. He sued both Stone and Carter and was granted a default judgment against Carter. Under a theory of negligent entrustment, as well as asserting certain provisions of the Kentucky Motor Vehicles Reparation Act (hereinafter referred to as "MVRA"), Appellant sought to hold Stone liable for the damages arising from Carter's use of her uninsured vehicle. The District Court granted Stone summary judgment on the issue of liability and the action was dismissed.
On appeal, the Jefferson Circuit Court reversed the summary judgment as to the negligent entrustment theory, but affirmed as to the MVRA argument. The Court of Appeals affirmed the latter holding and we granted discretionary review.
The precise issue presented for our consideration by this case is whether the MVRA may be construed to impose vicari ous liability on the owner of an uninsured vehicle for property damage caused by the alleged negligence of a subpermittee driver.
As Appellant notes, the primary purpose of the MVRA is "[t]o require owners . of motor vehicles . to procure insurance covering . legal liability arising out of ownership, operation or use of such motor vehicles." KRS 304.39-010. See also Crenshaw v. Weinberg, Ky., 805 S.W.2d 129, 131 (1991). By enacting the MVRA, the legislature intended to create a comprehensive compulsory insurance system that requires owners to provide vehicle security covering basic reparation benefits and that imposes legal liability on vehicle owners for damages or injuries arising out of ownership of .or use of the vehicle. KRS 304.39-010; KRS 304.39-080(5). It is Appellant's contention here that when Appellee violated the MVRA and permitted the use of her vehicle without purchasing liability insurance, she chose to be a de facto self-insurer of her car. He contends she should not escape liability for the property damage caused by her car by virtue of the fact that she broke the law, but rather should be held accountable for damages to the same extent as if she had complied with the law.
In accordance with the purpose of the MVRA, this Court has steadfastly denied any exclusions that would dilute or eliminate the minimum security required by the Act. Beacon Ins. Co. of America v. State Farm Mut. Ins. Co., Ky., 795 S.W.2d 62, 63 (1990). Additionally, we note that the MVRA, when adopted, was designed specifically "[t]o correct the inadequacies of the present reparation system.... " KRS 304.39-010(8).
Appellee responds by pointing out that KRS 304.39-050(2) provides that "If there is no security covering the vehicle, any contract of basic reparation insurance under which the injured person is a basic reparation insured shall apply." Appellee contends that, while this provision is not directly applicable to property damage, it demonstrates the legislature intended that one who suffers loss by an uninsured vehicle must first look to his own insurer, not the tortfeasor, for redress of his loss.
Having considered the arguments set forth by Appellee, we reject them and their implications. First, it is clear that KRS 304.39-050(2) is limited by its terms to personal injury and does not encompass property damage. KRS 304.39-050(1); KRS 304.39-020(2). Second, under Appel-lee's construction, one without proper liability insurance would only be liable for the property damage caused by his or her vehicle if she, the owner, were found to have negligently entrusted that vehicle to the driver, whereas one who is properly insured covers the losses of her permittee users regardless of her lack of fault in entrusting the vehicle to another. KRS 304.39-010; KRS 304.39-080(5). Therefore, had Appellee obtained the legally required coverage for her vehicle, Appellant would only have been required to prove that Appellee gave the permittee permission to use her vehicle and that the user's negligence resulted in the damages sought recovered. In sum, we do not believe the legislature, in enacting the MVRA, intended to make it more difficult for an injured party to recover under the circumstances presented in this case than if the law had been obeyed. Indeed, the simplicity of proving only permission to use the vehicle and negligence on the part of the permit-tee user relieves the injured party of a significant burden that previously existed and corrects one of the inadequacies of the prior system, just as the legislature intended.
In so holding, we acknowledge that the courts of other states have held otherwise when confronted with this issue. See, e.g., West v. Collins, 251 Kan. 657, 840 P.2d 435, 443 (1992) (Kansas Automobile Injury Reparations Act does not automatically impose liability on owner/insured for accident between covered permittee driver and uninsured motorist). However, because those states also differ from Kentucky's approach to no-fault automobile liability insurance in other respects, and considering the great lengths Kentucky has traveled to simplify coverage and recovery for injured parties, we see no need to delve too deeply into those cases. We simply hold that one who chooses to ignore the requirements of the MVRA is not thereby entitled to place additional roadblocks to recovery in the way of those injured by use of his or her vehicle. The decision of the Court of Appeals is hereby reversed and this matter is remanded to the Jefferson Circuit Court for proceedings in accordance with this opinion.
LAMBERT, Chief Justice; and JOHNSTONE and WINTERSHEIMER, JJ., concur.
COOPER, J., dissents by sepárate opinion, in which GRAVES and KELLER, JJ., join.