Allstate Ins. Co. v. Northfield Med. Ctr., PC, 2019 N.J. Super. Unpub. LEXIS 572

A cross-claim for indemnity by a defendant under an Insurance Fraud Prevention Act claim can be dismissed prior to trial under New Jersey law.

Allstate Insurance Company filed a claim under the Insurance Fraud Prevention Act against Daniel Dahan, D.C. and various other defendants regarding an illegal corporate structure in which a medical practice was owned by a non-physician. The defendant Dahan filed a cross-claim for indemnity against Robert Borsody, Esquire. The court determined that there was no New Jersey law that prohibited a court from deciding a motion to dismiss a cross-claim for indemnification at the summary judgement stage. Moreover, the court found that both Dahan and Borsody were liable based on their own conduct and neither were found to be constructively or vicariously liable. Accordingly, the multiple standards to determine whether a third party can recover indemnification can be determined prior to trial.


Case Law Alerts, 4th Quarter, October 2019

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