New Jersey court reviews No-Fault Law’s language and finds that there was nothing preventing an arbitrator from hearing common law fraud, unjust enrichment and RICO claims.

The defendants (a series of medical providers) filed a motion to dismiss, arguing that the plaintiff’s common law fraud, unjust enrichment and RICO claims should be decided via arbitration. The court reviewed New Jersey’s No-Fault Law’s language and found that there was nothing that prevented an arbitrator from hearing these types of claims. This decision is currently being appealed by GEICO. There have been a series of recent opinions finding that non-Insurance Fraud Prevention (IFPA) claims are subject to arbitration. These opinions have failed to address how the arbitration forum, which has limited discovery mechanisms and 30-minute hearings, would be able to equitably facilitate these types of claims. If the courts continue to find along these lines, insurance carriers will be limited to only filing IFPA claims in juridical proceedings.

_{Case Law Alerts, 3rd Quarter, July 2023 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 © 2023 Marshall Dennehey, all rights reserved. This article may not be reprinted without the express written permission of our firm.}