On February 19, 2026, the Supreme Court of Kentucky, in Minova USA, Inc. v. Jolly, considered whether a manufacturer that contracts with a freight carrier for transporting raw materials may be sued by the carrier’s employee for injuries sustained while delivering materials to the manufacturer.
In this case, an employee of a freight carrier was injured while transporting goods to a manufacturer that contracted for the delivery and transportation of raw materials. The trial court ruled that the manufacturer was entitled to exclusive remedy protection under workers compensation laws, but the Court of Appeals reversed, reasoning that the manufacturer was not entitled to “up-the-ladder” immunity from tort liability.
On appeal to the Kentucky Supreme Court, the court reasoned that under Kentucky statute 342.610, a contractor is treated the same as an employer—and therefore receives immunity from tort suits for work-related injuries suffered by employees of subcontractors, also known as “up-the-ladder immunity”—when it contracts with subcontractors for work that is a regular or recurrent part of its trade or business. The court, in its analysis, found that transportation and delivery services may become a regular or recurrent part of a business by contract, and that the pertinent inquiry must consider all relevant factors, including the nature of the services rendered under the specific contractual provisions.
The court noted the manufacturer’s extensive contractual requirements with the carrier and its direct involvement in the transportation process demonstrated that the transport, receipt, and unloading of materials by the transportation company constituted “part of the work” of the manufacturer’s business. As a result, the court held that the manufacturer was entitled to “up‑the‑ladder immunity” and could not be sued by the carrier’s employee.
With this decision, the court reversed the Court of Appeals’ ruling and reinstated the trial court’s judgment in favor of the manufacturer.
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