Karen Brenner and William Brenner v. Progressive Hawaii Insurance Corp.

New Orleans, Louisiana personal injury lawyer represented the Plaintiff on a insurance law question relating to a car wreck.



This case was filed in the Civil District Court, Orleans Parish, 24-06914 D-12 and was removed to federal court by the Defendant.



Louisiana's direct action insurance law changed significantly in August 2024, generally

eliminating the right to sue an insurer directly for a tortfeasor's actions, except in specific situations like uninsured motorist (UM) claims, insured insolvency, bankruptcy, death, or when service cannot be made on the insured. This revised statute, LA R.S. 22:1269, restricts most direct action claims, requiring plaintiffs to sue the insured tortfeasor and then typically seek recovery from the insurer after the insured's liability is established.

How it Worked (Before August 1, 2024)



Direct Action Allowed: Injured parties could sue the tortfeasor's insurer directly, without first suing the insured.



Purpose: This provided a way to ensure that an injured party could still recover damages even if the insured was unable to pay, such as in cases of insolvency or bankruptcy.



The Recent Changes (Effective August 1, 2024)



New Statute (LA R.S. 22:1269): The statute was significantly amended to remove the ability to file a direct lawsuit against the insurer.



Exceptions to the Rule: Lawsuits can still be brought directly against the insurer only in these limited circumstances:



Uninsured Motorist (UM) claims

When the insurer denies coverage or offers a reservation of rights



Increased Litigation: There has been significant litigation regarding the retroactive application of the amendment, i.e., whether it applies to lawsuits filed before its August 1, 2024, effective date.



Shift in Litigation Strategy: Plaintiffs now generally must pursue a claim against the insured tortfeasor first to establish liability, with the insurer then involved to pay the judgment or settle the claim, rather than being a defendant from the outset.

Settled for an undisclosed sum and dismissed with prejudice.