Doug Kemper (Of Counsel-Louisville, KY) succeeded in a motion to dismiss the firm’s insurer client. Plaintiff homeowners claimed the client’s Insured, a home inspection company, conducted a negligent pre-purchase inspection of the home and failed to discover and report numerous problems that if properly disclosed would have negated the purchase. Plaintiffs asserted claims of negligence, breach of contract, violation of the Kentucky Consumer Protection Act, negligence per se, and fraud, and sought punitive damages for alleged misrepresentations about the insured company’s work and certification that the inspection would be conducted by a licensed professional. Our client carrier denied coverage for the claims, which were specifically excluded in an endorsement. The plaintiffs then amended their complaint to join our carrier client in a Declaratory Judgment action obligating the carrier to provide coverage for the plaintiffs’ claim. Doug filed a Rule 12 motion to dismiss for failure to state a claim, arguing that (1) because Kentucky is a “no direct action” state, the plaintiffs could not assert a claim directly against the carrier, and (2) the plaintiffs lacked standing to bring a Declaratory Judgment action to litigate a coverage issue between an insurer and its insured. Upon review of our Motion to Dismiss, counsel conceded that the motion was well taken and offered to enter an Agreed Order to dismiss the carrier with prejudice.