What is a contribution action in an insurance litigation case?

A contribution action in an insurance litigation case is a legal action in which an insurance company or policyholder sues another party for their contribution in the costs of a judgment or settlement. This type of action is often seen in Hawaii due to the state’s large number of insured parties, both individuals and businesses. When a judgment or settlement is reached in a lawsuit, the insurance company of the party who is liable for the judgment or settlement will pay the cost of the award out of the insurance policy limits of coverage. This means that the insurance company is responsible for paying out the amount of the award, up to the limit of coverage. However, if the amount of the judgment or settlement exceeds the policy limits, the insurance company may have to seek contribution from other parties in the case. In a contribution action, the insurance company will sue a party who is at fault for the incident, or any party related to the incident, for their share of the payment of the award. The party that is sued in the contribution action is typically liable for any cost that exceeds the amount of the policy limits. For example, in a case involving multiple defendants, one defendant may be sued for their contribution of the costs. The court will then decide the amount of the contribution that must be paid. In Hawaii, contribution actions can be complex, as different laws may apply depending on the incident and the involved parties. Therefore, it is important to understand the details of your case and to seek legal help if you have any questions about a contribution action related to an insurance litigation case in Hawaii.

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What is a contribution action in an insurance litigation case?

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