proximate cause
In the context of first-party property insurance, "proximate cause" refers
to the cause of loss in a multiple-cause situation on which courts focus to
determine if the loss is covered. For sequential-cause situations, where the
first event sets in motion a chain of events that causes a second event that
causes the loss, there are three common law tests for ascertaining the "proximate
cause": (1) the last-cause test, (2) the first-cause test, and (3) the predominant-cause
test. The last-cause test (which developed earliest) states that the loss will
be covered if the last cause in the chain of events is covered. The first-cause
test states that the loss will be covered if the first cause in the chain of
events is covered. The predominant-cause test states that the loss will be covered
if the covered cause of loss is "predominant" over the noncovered cause of loss.
For concurrent-cause situations, where two or more events happen simultaneously
to produce the same injury or damage, only the predominant-cause test can be
used.
In the context of third-party liability insurance, "proximate cause" refers
to a doctrine by which a plaintiff must prove that the defendant's actions set
in motion a relatively short chain of events that could have reasonably been
anticipated to lead to the plaintiff's damages. If the defendant's actions were
"proximate" or close enough in the chain of causation to have foreseeably led
to the plaintiff's damages, courts will impose liability. Otherwise, if the
defendant's actions set in motion a long, bizarre chain of events that could
not have reasonably been foreseen to lead to the plaintiff's damages, courts
will not impose liability.
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