Non-Marine Underwriters at Lloyd's London v. Carrs Fork Coal Co.

MILLIKEN, Judge.

Appellants were sureties on self-insurer’s bonds of a Kentucky employer, Carrs Fork Coal Company. The employer was placed in receivership and at that time there were outstanding obligations of the employer to some of its employees and dependents of deceased employees for benefits under the Workmen’s Compensation Act. In discharge of their legal obligations, as sureties on the self-insurer’s bonds of the insolvent employer, the appellants paid the compensation claims.

In the trial court, entitlement to any priority status has been denied the sureties, that court holding, in…