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Insurance Fraud Act Suits by Insurers Held to Trigger Right to Jury Trials in New Jersey

Last week, the New Jersey Supreme Court unanimously held that a civil defendant sued by an insurance company for violations of the state’s Insurance Fraud Prevention Act (IFPA) has the right to trial by jury.  In Allstate New Jersey Ins. Co. v. Lajara, 2015 WL  4276162, 2015 N.J. LEXIS 797 (Jul. 16, 2015), the six justices decided that a statutory IFPA claim triggers the jury trial right because it seeks compensatory and punitive damages and is legal in nature as a result and because the elements necessary to prove such a claim are similar to common-law fraud. In December, 2008 Allstate and four affiliated companies brought suit against 63 defendants, alleging the violations of IFPA.  Those sued included physicians, chiropractors,

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Posted in Fraud and False Swearing, Regulation, U.S. Legal System
About The Property Insurance Law Observer
For more than four decades, Cozen O’Connor has represented all types of property insurers in jurisdictions throughout the United States, and it is dedicated to keeping its clients abreast of developments that impact the insurance industry. The Property Insurance Law Observer will survey court decisions, enacted or proposed legislation, and regulatory activities from all 50 states. We will also include commentary on current issues and developing trends of interest to first-party insurers.
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