Direct Action Law and Legal Definition

A direct action refers to a lawsuit by an insured against his or her own insurance company. A direct action is not a lawsuit against the tortfeasor or the tortfeasor's insurer. In a direct action a person claims against an insured by suing the insurer directly rather than pursuing compensation indirectly through the insured. A direct action can also refer to a lawsuit for enforcing a shareholder’s rights against a corporation.