The Appellate Division reversed, and the Supreme Court agreed. The problem was a mismatch of powers. New Jersey’s Insurance Fraud Prevention Act “allows for the 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 lets private parties sue in court for damages and injunctions. PIP arbitrators can do far less. They cannot grant equitable relief, and the court flagged “serious questions” about whether they could even award such damages or fees to an insurer.
New Jersey high court lets Allstate pursue fraud claims in court
