Doctor’s Associates Inc., the franchising company for Subway restaurants, can’t be held liable for workers compensation claims stemming from an uninsured franchisee, the Kentucky Supreme Court has ruled.
The Kentucky Uninsured Employers’ Fund had sought payment from Milford, Conn.-based Doctor’s Associates for medical and temporary total disability benefits it paid to the employee of a Subway restaurant in Whitesburg, Ky.
The restaurant, owned by Watash UBC, did not have workers comp insurance at the time of the employee’s May 2000 injury, even though Subway’s franchising agreement required Watash to maintain coverage, according to court records.