The Kentucky Supreme Court affirmed a Court of Appeals decision that denied insurance coverage for a wrongful conviction lawsuit, ruling in favor of Westport Insurance Company in a case involving a man who spent nearly three decades in prison for a crime he did not commit.
In the case *Jerel Colemon, as Administrator and Personal Representative of the Estate of William Virgil v. Westport Insurance Company*, the court upheld lower court rulings that found Westport had no obligation to provide coverage for claims stemming from William Virgil's wrongful prosecution and imprisonment.
William Virgil was convicted of murder in 1988 following the death of Retha Welch the previous year. He received a 70-year prison sentence and remained incarcerated for 28 years until DNA testing of the victim's rape kit excluded him as the perpetrator. The testing proved Virgil had no connection to the crime for which he had been imprisoned.
After his release, Virgil filed a federal civil rights lawsuit under 42 U.S.C. § 1983 against the City of Newport and past and present employees of the Newport Police Department. The lawsuit alleged personal injuries resulting from his wrongful prosecution. According to court documents, during their investigation, police officers allegedly withheld exculpatory evidence and coerced a jailhouse informant to make fabricated statements implicating Virgil in the crime.
The insurance coverage dispute arose when Westport Insurance Company, as successor to Coregis Insurance Company, sought a judicial determination of its coverage obligations. Westport had insured Newport from July 1, 1998, until July 1, 2000, a period that fell within the timeframe of Virgil's wrongful imprisonment.
Westport filed suit in Campbell Circuit Court seeking a declaration that it had no duty to provide coverage for the claims against Newport. The circuit court granted summary judgment in favor of Westport, finding that coverage was not triggered under its insurance policies. The Kentucky Court of Appeals subsequently affirmed this decision.
Jerel Colemon, serving as administrator and personal representative of William Virgil's estate, sought discretionary review from the Kentucky Supreme Court, which granted the petition. The Supreme Court's opinion, written by Justice Goodwine and rendered on December 18, 2025, affirmed the Court of Appeals decision.
The case highlights the complex intersection between wrongful conviction cases and insurance coverage disputes. When individuals who have been wrongfully convicted file civil rights lawsuits against municipalities and law enforcement agencies, questions often arise about whether insurance policies will cover the potential damages and defense costs.
Insurance coverage disputes in wrongful conviction cases typically center on policy language regarding the timing of alleged wrongful acts, exclusions for intentional misconduct, and whether the conduct that led to the wrongful conviction falls within the scope of coverage. In this instance, the courts at all levels determined that Westport's policies did not provide coverage for the claims arising from Virgil's case.
The Supreme Court's affirmation means that Newport and its officials will not have insurance coverage from Westport for any potential liability in Virgil's federal civil rights lawsuit. This places the financial responsibility for any judgment or settlement directly on the municipality and the individual defendants.
Wrongful conviction cases have become increasingly prominent as DNA testing and other forensic advances have helped exonerate individuals who were incorrectly convicted of crimes. The National Registry of Exonerations has documented thousands of cases where individuals were later proven innocent of the crimes for which they were convicted.
Virgil's case represents one of the longer periods of wrongful incarceration, with his 28-year imprisonment spanning nearly three decades. Such cases often result in substantial civil rights lawsuits against the law enforcement agencies and municipalities involved in the wrongful prosecution.
The insurance coverage question in such cases can significantly impact the financial resources available to compensate wrongfully convicted individuals. When insurance coverage is denied, municipalities may face substantial out-of-pocket expenses for both defending the lawsuits and paying any resulting judgments or settlements.
The Kentucky Supreme Court's decision is final regarding the insurance coverage dispute between Colemon and Westport. The underlying federal civil rights lawsuit filed by Virgil against Newport and its police officials would proceed separately in federal court, where questions of liability and damages would be determined based on the merits of the civil rights claims.
This case underscores the ongoing challenges faced by wrongfully convicted individuals and their families in seeking compensation for the years lost to imprisonment for crimes they did not commit. While the criminal justice system may eventually correct wrongful convictions, the civil remedy process often involves additional complex legal battles over insurance coverage and municipal liability.