The 2024 amendments to Louisiana’s direct action statute, La. R.S. 22:1269, have brought significant changes for those pursuing catastrophic injury claims. If you’re dealing with a catastrophic injury case, it’s crucial to understand how these changes might affect your legal options.
What’s Changed in Direct Action Laws for Catastrophic Injury Claims?
The 2024 amendments significantly change when and how you can sue an insurance company directly after a catastrophic injury. Here’s a breakdown of the most important updates:
- Bankruptcy of the Insured
If the at-fault party files for bankruptcy, you may now sue their insurance company directly. This is a new rule that allows you to take action when the insured files for bankruptcy or if bankruptcy proceedings are underway. - Insolvency of the Insured
If the person responsible for the injury is insolvent (their debts exceed their assets), you can take legal action against the insurer. This rule hasn’t changed, but now you can allege insolvency if you have a valid reason to believe the insured is unable to pay. - Difficulty Serving the Insured
If you can’t serve the injured party with legal papers or if they fail to respond to the lawsuit within 180 days, you can now sue the insurer directly. This is a change from the previous law, which allowed direct action in similar cases. - Family Injury Claims
The law still allows direct action if the injury occurs between family members, such as between spouses or parents and children. - Deceased Insured
If the insured party has passed away, you can still proceed with a direct action lawsuit against the insurer. - Insurance Coverage Disputes
If there’s a dispute over whether the insurer will cover the claim, you may sue the insurer directly. This includes cases where the insurer denies coverage or defends under a reservation of rights.
New Requirements for Insurance Companies
The amendments also introduce new rules for insurers, requiring them to notify the insured when they are asserting a defense or denying coverage. This notice must be sent within 90 days and no later than 30 days before trial. This ensures that the insured is fully informed and can prepare accordingly.
What Does This Mean for Your Catastrophic Injury Case?
The key takeaway for anyone dealing with a catastrophic injury case in Louisiana is understanding when you can and can’t sue an insurance company directly. The law now limits your ability to name insurers as defendants, except in certain cases (such as bankruptcy or insolvency). However, if you can’t name the insurer in the lawsuit initially, you can still add them later if certain conditions are met.
How Does Insurance Coverage Affect Your Case?
The new law also restricts the disclosure of insurance coverage during trial. Unless it’s necessary to resolve a coverage dispute or to show bias, the jury won’t be told about the existence of insurance coverage. This helps prevent juries from being influenced by the presence of insurance coverage in catastrophic injury cases.
How to Enforce a Judgment Against an Insurer
If you win your case but can’t initially name the insurer as a defendant, you may be able to add the insurer after a verdict is reached. This allows you to enforce a judgment or settlement based on the insurer’s policy coverage.
What You Need to Know About Catastrophic Injury Claims in Louisiana
The 2024 changes to Louisiana’s direct action statute have made it more challenging to sue an insurance company directly in catastrophic injury cases. However, there are still exceptions that allow direct action in specific circumstances, such as bankruptcy, insolvency, or coverage disputes.
Understanding these changes is essential to navigating your legal options. If you or a loved one has suffered a catastrophic injury, it’s crucial to work with an experienced attorney who can guide you through these complex legal changes and help you pursue the compensation you deserve.
If you need help with a catastrophic injury case in Louisiana, contact our law firm for a consultation. We’re here to support you through the legal process and ensure you get the justice you deserve.