Direct Action Insurance Appeal: When is a Judgment Final?

The defendant, Hanover Insurance Company, moves to dismiss the plaintiff’s complaint. On March 20, 2024, the plaintiff, administrator of the decedent’s estate, was delivered a jury verdict in the amount of $13,364,383.20, based on the negligence and recklessness of the group home, Oak Hill. The jury verdict was entered by the court on May 8, 2024. Hanover provided insurance for Oak Hill pursuant to multiple general liability insurance policies. The plaintiff alleges that Hanover breached the terms of its insurance contract with Oak Hill when it did not pay the judgment entered against Oak Hill within thirty days of March 20, 2024. In its motion to dismiss, Hanover argues that the plaintiff lacks standing because there has not been a final judgment under Connecticut General Statutes § 38a-321.

Insurance Coverage: Direct Action Rights Despite Appeal

More particularly, Hanover claims that because the underlying action has been appealed, there is no final judgment. In response, the plaintiff argues that the jury verdict, which was accepted and entered by the court, is a final judgment regardless of the appeal. Section 38a-321 provides: “Upon the recovery of a final judgment against any person… for loss or damage … if the defendant in such action was insured against such loss or damage at the time when the right of action arose and if such judgment is not satisfied within thirty days after the date when it was rendered, such judgment creditor shall be subrogated to all the rights of the defendant and shall have a right of action against the insurer….”

Superior Court Rules on Final Judgment in Hanover Insurance Case

The Appellate Court has explained that where a plaintiff obtains a judgment in its favor against an insured tortfeasor, and the tortfeasor does not satisfy the judgment within thirty days, the plaintiff is subrogated to the rights of the tortfeasor as against the insurer. The court looks to at the term “final judgment” as used in other sections of the Connecticut General Statutes. Section 52-263 states: “Upon the trial of all matters of fact in any cause or action in the Superior Court … if either party is aggrieved by the decision of the court … he may appeal to the court having jurisdiction from the final judgment of the court or of such judge ….” The court reads the law as a consistent body and agrees that a jury verdict is a final judgment under § 38a-321. However, because the jury verdict has been appealed, the court enters an automatic stay under § 61-11 until the resolution of the appeal. Accordingly, the court denies Hanover’s motion to dismiss. Case v. Hanover Ins. Co., No. NNH-CV24-6143677-S, 2025 WL 88457 (Conn. Super. Ct. Jan. 10, 2025)