Formulation of Efficient Proximate Cause Doctrine

Efficient proximate cause states that when there are two causes of loss to an event, one excluded and one covered, that if the proximate cause of the loss is the covered cause that the loss will be covered. The efficient proximate cause must be the one that sets others in motion. Two states, California and North Dakota, have codified efficient proximate cause into statute. Arizona has a bill pending that would include coverage for landslide if the efficient proximate cause of the landslide was a fire.

Since most states do not have efficient proximate cause in statute, we have pulled some exemplary cases that discuss the issue. There are often other issues involved with the cases, but we looked specifically at the causes of loss and what the court said regarding efficient proximate cause. Case outcomes in green indicate that efficient proximate cause was applicable. Red highlights show cases where efficient proximate cause did not apply. Yellow indicates that the issue of efficient proximate cause was present and affected the decision, but was not clearly decided. Grey are the few states with actual statutes on efficient proximate cause.