Fraternal Order of Police, Lodge 4 v. Lexington-Fayette Urban County Government

Summary

The Kentucky Supreme Court held that the initial grievance was not arbitrable because it asserted no actual controversy when filed, so LFUCG did not breach the collective bargaining agreement by refusing to arbitrate it. The court nevertheless held that LFUCG’s counterclaim seeking a declaration regarding its duty to defend and indemnify Morrow created an arbitrable dispute, and the circuit court improperly decided that dispute’s merits. The court reversed and remanded for arbitration concerning scope of employment and vacated the related attorney-fee award, while leaving the self-insurance-policy ruling undisturbed.