The Appellate Division reversed, and the Supreme Court agreed. The problem was mismatch of powers. New Jersey’s Insurance Fraud Prevention Act allows recovery of “compensatory damages, investigative expenses, costs, attorneys’ fees, and, where a pattern of fraud is established, treble damages.” The state’s anti-racketeering law allows private parties to sue in court for damages and injunctions. PIP arbitrators can do very little. They cannot award equitable relief, and the court raised “serious questions” about whether they could even award such damages or fees to an insurer.
Allstate given the green light to pursue fraud claims in court & more related News Here
