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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.
The largest direct-action lawsuit in history ($333 million) was the subject matter of the motion picture Erin Brockovich . [1]
A class action lawsuit, also known as a class suit, class-action, representative action, or representative action, is a type of lawsuit where one of the parties is a group of people who are represented collectively by a member or members of that group. The class action originated in the United States and is still predominantly an American phenomenon, but Canada, as well as several European countries with civil law, have made changes in recent years to allow consumer organizations to bring claims on behalf of consumers.
Erin Brockovich is an American paralegal, consumer advocate, and environmental activist who was instrumental in building a case against Pacific Gas & Electric Company (PG&E) involving groundwater contamination in Hinkley, California for attorney Ed Masry in 1993. Their successful lawsuit was the subject of the Oscar-winning film, Erin Brockovich (2000), starring Julia Roberts as Brockovich and Albert Finney as Masry.
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to protect against the risk of a contingent or uncertain loss.
A plaintiff is the party who initiates a lawsuit before a court. By doing so, the plaintiff seeks a legal remedy. If this search is successful, the court will issue judgment in favor of the plaintiff and make the appropriate court order. "Plaintiff" is the term used in civil cases in most English-speaking jurisdictions, the notable exceptions being England and Wales, where a plaintiff has, since the introduction of the Civil Procedure Rules in 1999, been known as a "claimant" and Scotland, where the party has always been known as the "pursuer". In criminal cases, the prosecutor brings the case against the defendant, but the key complaining party is often called the "complainant".
Civil procedure is the body of law that sets out the rules and regulations along with some standards that courts follow when adjudicating civil lawsuits. These rules govern how a lawsuit or case may be commenced; what kind of service of process is required; the types of pleadings or statements of case, motions or applications, and orders allowed in civil cases; the timing and manner of depositions and discovery or disclosure; the conduct of trials; the process for judgment; the process for post-trial procedures; various available remedies; and how the courts and clerks must function.
A lawsuit is a proceeding by one or more parties against one or more parties in a civil court of law. The archaic term "suit in law" is found in only a small number of laws still in effect today. The term "lawsuit" is used with respect to a civil action brought by a plaintiff who requests a legal remedy or equitable remedy from a court. The defendant is required to respond to the plaintiff's complaint or else risk default judgment. If the plaintiff is successful, judgment is entered in favor of the defendant. A variety of court orders may be issued in connection with or as part of the judgment to enforce a right, award damages or restitution, or impose a temporary or permanent injunction to prevent an act or compel an act. A declaratory judgment may be issued to prevent future legal disputes.
In a civil proceeding or criminal prosecution under the common law or under statute, a defendant may raise a defense in an effort to avert civil liability or criminal conviction. A defense is put forward by a party to defeat a suit or action brought against the party, and may be based on legal grounds or on factual claims.
Interpleader is a civil procedure device that allows a plaintiff or a defendant to initiate a lawsuit in order to compel two or more other parties to litigate a dispute. An interpleader action originates when the plaintiff holds property on behalf of another, but does not know to whom the property should be transferred. It is often used to resolve disputes arising under insurance contracts.
In law, liable means "responsible or answerable in law; legally obligated". Legal liability concerns both civil law and criminal law and can arise from various areas of law, such as contracts, torts, taxes, or fines given by government agencies. The claimant is the one who seeks to establish, or prove, liability.
In a court of law, a party's claim is a counterclaim if one party asserts claims in response to the claims of another. In other words, if a plaintiff initiates a lawsuit and a defendant responds to the lawsuit with claims of their own against the plaintiff, the defendant's claims are "counterclaims."
Liability insurance is a part of the general insurance system of risk financing to protect the purchaser from the risks of liabilities imposed by lawsuits and similar claims and protects the insured if the purchaser is sued for claims that come within the coverage of the insurance policy.
Edward Louis Masry was an American lawyer, a partner in the law firm of Masry & Vititoe and also a mayor and city councilman for the City of Thousand Oaks, California. With the help of his legal assistant Erin Brockovich, Masry built a case against the Pacific Gas & Electric Company (PG&E) of California in 1993. Their successful lawsuit was the subject of the Oscar-winning film, Erin Brockovich (2000), starring Julia Roberts as Brockovich and Albert Finney as Masry.
Personal injury is a legal term for an injury to the body, mind, or emotions, as opposed to an injury to property. In common law jurisdictions the term is most commonly used to refer to a type of tort lawsuit in which the person bringing the suit has suffered harm to their body or mind. Personal injury lawsuits are filed against the person or entity that caused the harm through negligence, gross negligence, reckless conduct, or intentional misconduct, and in some cases on the basis of strict liability. Different jurisdictions describe the damages in different ways, but damages typically include the injured person's medical bills, pain and suffering, and diminished quality of life.
In the United States, removal jurisdiction allows a defendant to move a civil action or criminal case filed in a state court to the United States district court in the federal judicial district in which the state court is located. A federal statute governs removal.
Impleader is a United States civil court procedural device before trial in which a defendant joins a third party into a lawsuit because that third party is liable to an original defendant. Using the vocabulary of the Federal Rules of Civil Procedure, the defendant seeks to become a third-party plaintiff by filing a third party complaint against a third party not presently party to the lawsuit, who thereby becomes a third-party defendant. This complaint alleges that the third party is liable for all or part of the damages that the original plaintiff may win from the original defendant.
Insurance bad faith is a tort unique to the law of the United States that an insurance company commits by violating the "implied covenant of good faith and fair dealing" which automatically exists by operation of law in every insurance contract.
Tort reform consists of changes in the civil justice system in common law countries that aim to reduce the ability of plaintiffs to bring tort litigation or to reduce damages they can receive. Such changes are generally justified under the grounds that litigation is an inefficient means to compensate plaintiffs; that tort law permits frivolous or otherwise undesirable litigation to crowd the court system; or that the fear of litigation can serve to curtail innovation, raise the cost of consumer goods or insurance premiums for suppliers of services, and increase legal costs for businesses. Tort reform has primarily been prominent in common law jurisdictions, where criticism of judge-made rules regarding tort actions manifests in calls for statutory reform by the legislature.
Baylis v. Travelers' Insurance Company, 113 U.S. 316 (1885), was a case where after close of testimony in a trial, the defendant moved to dismiss on the ground of the insufficiency of the evidence to sustain a verdict. This motion was denied and the plaintiff asked that the case be submitted to the jury to determine the facts on the evidence. The court refused this, and plaintiff excepted. The court then ordered a verdict for plaintiff, subject to its opinion, whether the facts proved were sufficient to render defendant liable to plaintiff on the cause of action stated. Plaintiff moved for judgment on the verdict, and defendant moved for judgment on the pleadings and minutes of trial. Judgment was rendered for defendant upon an opinion of the court as to the effect of the evidence and as to the law on the facts as deduced from it by the court. Held that the plaintiff was thereby deprived of his constitutional right to a trial by jury, which he had not waived, and to which he was entitled.
Insurance in South Africa describes a mechanism in that country for the reduction or minimisation of loss, owing to the constant exposure of people and assets to risks. The kinds of loss which arise if such risks eventuate may be either patrimonial or non-patrimonial.
The special motion to strike is a motion authorized by the California Code of Civil Procedure intended to stop strategic lawsuits against public participation (SLAPPs). They were created in 1992 with the purpose of encouraging participation in matters of public significance. The motion allows a litigant to strike a complaint when it arises from conduct in furtherance of the moving party's rights to petition or free speech in connection with a public issue. If the moving party prevails, they are entitled to attorney's fees by right. The motion is codified in section 425.16 of the Code. More than 300 published court opinions have interpreted and applied California's anti-SLAPP law. Because the right to file a special motion to strike is substantive immunity to suit, rather than a merely procedural right, federal courts apply the law to state law claims they hear under diversity jurisdiction.