Strategies, Challenges, and Answers

Nevada Is Not A Direct Action State

In October 2017, Ronald Law was involved in a motor vehicle accident.  In June 2021, he filed a Complaint and then an Amended Complaint against Progressive (the tortfeasor’s insurer) and against Progressive’s adjuster.  The Complaint alleged:

      1. Negligence;
    1. Abuse of Process;
    2. Fraud;
    3. Violation of HIPAA and Patient Confidentiality Laws, Statutes, Regulations and Practices;
    4. Negligent Infliction of Emotional Distress (“NIED”);
    5. Defamation;
    6. Injurious Falsehood; and
    7. Fraudulent Concealment.

Progressive filed a Motion to Dismiss based on Rule 12(b)(5).  Progressive argued that direct actions are not legally permitted in Nevada.  Law v. Progressive W. Ins. Co., 2021 Nev. Dist. LEXIS 1995, *2.  The Second Judicial District Court agreed with Progressive and dismissed the action. The Plaintiff appealed. 

The case was assigned to the Nevada Court of Appeals.  The Court issued its opinion in August 2023.  See Law v. Progressive Direct Ins. Co., 2023 Nev. App. Unpub. LEXIS 330.  Relying on the decision of Hall v. Enter. Leasing Company-West, 122 Nev. 685, 693, 122 Nev. 685, 693, 137 P.3d 1104, 1109, 2006 Nev. LEXIS 81, *15, 122 Nev. Adv. Rep. 59, the Court reiterated that a direct action is not permitted under Nevada law, without first having successfully brought an action against Progressive’s insured and then receiving an assignment from the insured to bring such a claim.  

If you have insurance law or coverage law questions, please contact Mike Mills at 702.240.6060×114 or email him at