Direct-action lawsuit
Encyclopedia
A direct-action lawsuit is brought directly against an insurance company for a wrong done by the insured.
In a lawsuit
that is not direct-action, a plaintiff
brings the claim
against the insured, who actually wronged the plaintiff. Once judgment has been rendered against the defendant
, there are a number of ways that the insurance company (assuming the defendant is insured) might later be made to pay the victorious plaintiff.
If the plaintiff wants to avoid the extra time and process required to eventually be paid by the insurance company, the action can be brought directly against the insurance company. The plaintiff must still prove all of the same facts that would be the plaintiff's burden, had the action been brought against the insured. In addition, the plaintiff must prove that the insured was covered by the insurance company, and that the insurance policy covered the kind of wrong for which the plaintiff is seeking remedy. The insured is then treated as a third party to the litigation, and the insurance company itself is the defendant.
This name can also be given to any lawsuit that is brought as a kind of direct action
activism. One example can be a customer suing a company to repeal an action deemed an infringement on the rights of the customer as a citizen and thus a subject to federal or state law.
Allegedly, the largest direct-action lawsuit was the subject matter of the motion picture Erin Brockovich
.
In a lawsuit
Lawsuit
A lawsuit or "suit in law" is a civil action brought in a court of law in which a plaintiff, a party who claims to have incurred loss as a result of a defendant's actions, demands a legal or equitable remedy. The defendant is required to respond to the plaintiff's complaint...
that is not direct-action, a plaintiff
Plaintiff
A plaintiff , also known as a claimant or complainant, is the term used in some jurisdictions for the party who initiates a lawsuit before a court...
brings the claim
Cause of action
In the law, a cause of action is a set of facts sufficient to justify a right to sue to obtain money, property, or the enforcement of a right against another party. The term also refers to the legal theory upon which a plaintiff brings suit...
against the insured, who actually wronged the plaintiff. Once judgment has been rendered against the defendant
Defendant
A defendant or defender is any party who is required to answer the complaint of a plaintiff or pursuer in a civil lawsuit before a court, or any party who has been formally charged or accused of violating a criminal statute...
, there are a number of ways that the insurance company (assuming the defendant is insured) might later be made to pay the victorious plaintiff.
If the plaintiff wants to avoid the extra time and process required to eventually be paid by the insurance company, the action can be brought directly against the insurance company. The plaintiff must still prove all of the same facts that would be the plaintiff's burden, had the action been brought against the insured. In addition, the plaintiff must prove that the insured was covered by the insurance company, and that the insurance policy covered the kind of wrong for which the plaintiff is seeking remedy. The insured is then treated as a third party to the litigation, and the insurance company itself is the defendant.
This name can also be given to any lawsuit that is brought as a kind of direct action
Direct action
Direct action is activity undertaken by individuals, groups, or governments to achieve political, economic, or social goals outside of normal social/political channels. This can include nonviolent and violent activities which target persons, groups, or property deemed offensive to the direct action...
activism. One example can be a customer suing a company to repeal an action deemed an infringement on the rights of the customer as a citizen and thus a subject to federal or state law.
Allegedly, the largest direct-action lawsuit was the subject matter of the motion picture Erin Brockovich
Erin Brockovich (film)
Erin Brockovich is a 2000 biographical film directed by Steven Soderbergh. The film is a dramatization of the story of Erin Brockovich, played by Julia Roberts, who fought against the US West Coast energy corporation Pacific Gas and Electric Company. Roberts won the Academy Award, Golden Globe,...
.