New Jersey Supreme Court Determined Whether Claims Brought Under the Insurance Fraud Protection Act and the Workers’ Compensation Act Were Subject to the Apportionment Procedure of the Comparative Negligence Act.

The plaintiff alleged that the defendants misrepresented their relationship, ownership structure and submitted fraudulent payroll records to reduce the premiums for workers’ compensation insurance. The jury awarded different amounts in compensatory and punitive damages against the various defendants. 

The trial court determined that all of the defendants should be jointly and severally liable for the $756,990 awarded as compensatory damages. The New Jersey Supreme Court found that the Comparative Negligence Act trumps the Insurance Fraud Protection Act and prohibits joint and several liability in these circumstances. Accordingly, the decision makes it more difficult for a plaintiff to recover damages under the Insurance Fraud Protection Act.

_{Case Law Alerts, 1st Quarter, January 2024 is prepared by Marshall Dennehey to provide information on recent developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. Copyright © 2024 Marshall Dennehey, all rights reserved. This article may not be reprinted without the express written permission of our firm.}