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Direct Action in Wisconsin May 18, 2010

Posted by Andrew Christman in FAQ Personal Injury, Personal Injury Law, Wisconsin Auto Accidents.
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Wisconsin Statute 632.24 may appear confusing on first read.  The implications however are much more straight forward.  Wisconsin Statute 632.24 makes Wisconsin a direct action state.  In states that do not have a direct action rule, injured parties must bring a suit against only that party who harmed them.  After the judgment in this case, the insured defendant will then pursue contribution from their insurance company.  Wisconsin’s direct action statute, however, requires that in a negligence suit, plaintiffs bring suit not only against the party who harmed them, but also directly bring suit against that party’s insurer.  Normally a direct action like this against the insurance company would not be possible under contract law because the injured party would not have privity to the insurance contract and therefore could not seek to enforce the contract by holding the insurance company directly liable for the actions of their insured.  Wisconsin Statute 632.24 changes this by making the insurance company directly liable to the insured party.

Feel free to contact Groth Law Firm, S.C.  if you have any questions or would like to discuss your need for a personal injury attorney.  Groth Law Firm, S.C. has offices to meet with clients in Brookfield, Milwaukee, Green Bay and Marinette.

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