Opinion ID: 2566097
Heading Depth: 4
Heading Rank: 2

Heading: Inability to Satisfy the Judgment Against Hiatt

Text: ¶54 Having concluded that Hiatt's liability under the default judgment was covered by the Nationwide policy, we turn to the question of whether West American unsuccessfully attempted to execute on the judgment. Under the statute, the bankruptcy or insolvency of the insured may not diminish any liability of the insurer to third parties such as Speros or West American. Utah Code Ann. § 31A-22-201 (2003). However, an insurer is subject to a direct action by a third party only if execution against the insured is returned unsatisfied. Id. ¶55 West American is entitled to reimbursement from Nationwide if it attempted unsuccessfully to execute on its judgment against Hiatt. Hiatt is now deceased, and all indications in the record suggest that execution against Hiatt's estate would prove futile. Nevertheless, there is nothing in the record to suggest that West American actually attempted an execution against Hiatt that was returned unsatisfied. Because an unsatisfied attempt to execute on a judgment against an insured is a prerequisite element of West American's right to pursue a direct action against Nationwide, we remand to the trial court for a finding on this issue.