Slights Addresses Third-Party Direct Actions by Judgment Holders Against an Insurer

Barry Klayman and Mark Felger, writing in the Delaware Business Court Insider, review a recent decision in the Superior Court of Delaware that addresses whether a third party may bring a direct action against an insurer for coverage on a theory of subrogation when equitable subrogation does not apply and the right cannot be traced to a statute or contract. The vice chancellor, sitting by designation in Superior Court, found the law to be uncertain, but determined it was unnecessary to clarify the law because the plaintiffs could not satisfy the requirements for subrogation to apply.

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Mark E. Felger

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