Direct-Action Lawsuit

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.