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March 27, 2026
LITIGATION PRIVILEGE DEFEATS DEFAMATION SUITS

ABSOLUTE IMMUNITY FOR COMPLAINTS TO DMV

Complaints Filed By The Defendants With The Department Of Motor Vehicles Were Entitled To Absolute Immunity

Post number 5312

See the full video at https://lnkd.in/g8rhDh-Z and at https://lnkd.in/gkpfVfjb and at https://zalma.com/blog plus more than 5300 posts.

In Modzelewski’s Towing & Storage, Inc., et al. v. Government Employees Insurance Company et al., No. AC 47933, Court of Appeals of Connecticut (March 24, 2026) Modzelewski’s Towing & Storage, Inc., Chris’ Auto Clinic, LLC, MyHoopty.com, LLC, and Farmington Auto Park, LLC, initiated an action seeking damages for tortious interference with business expectancies and other relief. The dispute arose after complaints were filed against them by Government Employees Insurance Company (GEICO) and individual defendants John P. Vaz and Patrick Capri with the Connecticut Department of Motor Vehicles. The plaintiffs alleged that these complaints interfered with their business relationships.

LEGAL ISSUES

The central legal issue concerned the application of § 14-63-45b of the Regulations of Connecticut State Agencies, which governs complaints to the Department of Motor Vehicles. The trial court examined whether the defendants’ conduct — filing complaints with the department — was protected by absolute immunity under the litigation privilege, a doctrine that shields certain communications made in the course of judicial or quasi-judicial proceedings from liability.

1. Whether the complaints filed by the defendants with the Department of Motor Vehicles were entitled to absolute immunity under the litigation privilege.

2. Whether the trial court properly dismissed the plaintiffs’ claims for lack of subject matter jurisdiction based on the litigation privilege.

DISCUSSION AND ANALYSIS

The trial court granted the defendants’ motions to dismiss, finding that the complaints submitted to the Department of Motor Vehicles fell within the scope of the litigation privilege and were thus immune from suit.

On appeal, the plaintiffs argued that the privilege should not apply, contending the complaints were not sufficiently related to a judicial or quasi-judicial proceeding. The appellate court disagreed, concluding that the process involving the Department of Motor Vehicles constituted a quasi-judicial proceeding, and the privilege applied. As a result, the dismissal for lack of subject matter jurisdiction was affirmed.

CONCLUSION

To determine where there is an effective litigation privilege is whether the body has the power to:

1. exercise judgment and discretion;
2. hear and determine or to ascertain facts and decide;
3. make binding orders and judgments;
4. affect the personal or property rights of private persons;
5. examine witnesses and hear the litigation of the issues on a hearing; and
6. enforce decisions or impose penalties.

The court determined that the department’s complaint and hearing proceeding is quasi-judicial in nature because the Commissioner of Motor Vehicles or the designated hearing officer is vested with the discretion and judgment to consider motions, subpoena witnesses, require the production of records, receive, consider, and evaluate the evidence, limit the number of witnesses, permit additional pleadings and evidence pre- and post-hearing, and issue a final decision based on their consideration of the entire record.

The Court of Appeals of Connecticut affirmed the trial court’s judgment, holding that the defendants’ complaints to the Department of Motor Vehicles were protected by absolute immunity under the litigation privilege, thereby precluding the plaintiffs’ claims for tortious interference and other relief.

The policy underlying the litigation privilege is that in certain situations the public interest in having people speak freely outweighs the risk that individuals will occasionally abuse the privilege by making false and malicious statements.

The litigation privilege is a long-standing common law rule that communications uttered or published in the course of judicial proceedings are absolutely privileged so long as they are in some way pertinent to the subject of the controversy.

In the present case, a consumer complaint filed with the department is necessary to initiate the department proceeding that the plaintiffs concede is quasi-judicial in nature. The trial court explained that the defendants’ alleged filing of complaints with the department were part of the initial steps in the distinct possibility that the department would commence proceedings against the plaintiffs.

Accordingly, the Court of Appeals agreed with the court that public policy supports the application of the litigation privilege to complaints filed with the department of the regulations and, therefore, conclude that the court properly granted the defendants’ motions to dismiss. The judgment was affirmed.

ZALMA OPINION

The state set up a department to control and deal with disputes about the actions of people and entities involved in judicial or quasi judicial entities. GEICO, on its own behalf and on behalf of its insureds reported to the agency improper conduct only to find itself sued for defamation. The trial court and Court of Appeals applied the litigation privilege and threw out the defamation actions.

(c) 2026 Barry Zalma & ClaimSchool, Inc.

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00:08:15
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May 04, 2026

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Chutzpah: After Being Paid for a New Roof Insured Makes Second Claim For Same Damages

Post number 5347

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In Mohammed Ali Khalili v. State Farm Lloyds, No. 14-25-00611-CV, Court of Appeals of Texas (April 30, 2026) Khalili maintained a State Farm Lloyds homeowners insurance policy for decades. In 2008 he filed a roof-damage claim; State Farm paid him to replace the entire roof (shingles and gutters). Khalili never replaced the roof and repeated his claim.

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In 2021 he filed a second roof claim. State Farm’s inspectors found the roof “very old” with extensive non-storm-related damage. The claim was denied because (1) the damage did not exceed the deductible and (2) State Farm had already paid for a full roof replacement.

PROCEDURAL HISTORY

State Farm filed motion for summary...

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Investigation of First Party Property Claims

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Read the full article at https://lnkd.in/gzvvdkMZ and at https://zalma.com/blog.

Below you will read from this post until you reach the the end of this blog post as the free part of an Excellence in Claims Handling post. To read the full article and receive all articles for members of Excellence in Claims Handling you should consider joining as a paid member to get full access to articles for members only, to our news, analysis, insurance coverage, claims, insurance fraud and insurance webinars, by clicking at the subscription link below.

A first party property policy does not insure property: it insures a person, partnership, corporation or other entity against the risk of loss of the property. Before an insured can make a claim for indemnity under a policy of first party property insurance the insured must prove that there was damage to property the risk of loss of which was insured by the policy. The obligation imposed on the insured ...

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