NEW JERSEY CONTEMPLATES AN ADDITIONAL CAUSE OF ACTION FOR CLAIMANTS SUBJECTED TO UNFAIR CLAIM PRACTICES
The tens of thousands of property and casualty claims related to Sandy’s wrath, along with the thousands of complaints state regulators, legislators, and the Governor’s office have received from frustrated claimants, have resulted in proposed legislation and regulatory action. The new legislation has been named the Consumer Protection Act of 2012. Please click the first link in the bottom section of this page to see copies of the legislation introduced in the NJ Senate, and recently in the NJ Assembly, to create a private right of action for bad faith claims practices regarding property, and casualty insurance policies or contracts. Senator Scutari is the primary sponsor – his district covers Monmouth, Somerset, and Union Counties, with Monmouth suffering significant losses as a result of Sandy. The bill is quite ambitious – it seeks to become law immediately upon adoption – normally a roll out period is necessary to put the parties impacted by the legislation on notice of the law’s provisions. The legislature can make a civil remedy retroactive; when the Legislature has clearly indicated that a statute should be given retroactive effect, the courts will give it that effect-unless it will violate the constitution or result in a manifest injustice. Baldwin v. Newark, 38 N.J.L. 158, 159 (Sup.Ct.1895); see Gibbons v. Gibbons, 86 N.J. 515, 522-23, 432 A.2d 80 (1981); Howard Savings Inst. v. Kielb, 38 N.J. 186, 193, 183 A.2d 401 (1962). State, Dept. of Envtl. Prot. v. Ventron Corp., 94 N.J. 473, 498, 468 A.2d 150, 163 (1983) Similar efforts to create a private right of action have failed in the past, but there may be enough agitation from Sandy to carry this through. Governor Christie’s sentiments regarding delays in claim payments for homes destroyed or badly damaged by Sandy would indicate that he’ll sign it if it is passed. A copy of the Press Release from Tuesday, February 5, 2013 (click the second link at the bottom of this page), which coordinated with the DOBI order referenced below, shows the scope of the problem and the Governor’s sentiments. The New Jersey Department of Banking and Insurance (DOBI) is feeling the pressure to demand action from insurers on Sandy claims, and entered the attached order (A-13-104) (please see the third link down below) on Tuesday, as well as shortening the time period for a carrier to respond to an inquiry from DOBI to five business days, down from the normal 15. LINKS
- New Jersey Consumer Protection Act 2012
- Governor Christie’s Press Release
- New Jersey Department of Banking and Insurance A-13-104
Contact CockerillCraigMoore Law
At CockerillCraigMoore Law, all of our lawyers have decades of courtroom experience. Three of our partners are certified as civil trial attorneys by the New Jersey Supreme Court, and two are fellows of the American College of Trial Lawyers. To learn more about the services we provide to insurance carriers, contact our office online or call us at 856-429-1060 for an appointment.
FOOTBALL, BEER AND THE DRAM SHOP ACT – WHO IS RESPONSIBLE WHEN A DRUNKEN FAN GETS BEHIND THE WHEEL?
If a drunk driver causes an accident and someone is harmed, normally that driver is held responsible for paying for damages and compensation for injuries. Depending on the circumstances, who served that driver the alcohol, may also be legally responsible. NEW JERSEY’S...
FORMER CRAIGANNINBAXTERLAW PARTNER JUDGE FAUSTINO FERNANDEZ – VINA OF CAMDEN COUNTY CONFIRMED TO SERVE ON THE NJ SUPREME COURT
JUDGE FAUSTINO FERNANDEZ VINA OF CAMDEN COUNTY CONFIRMED TO SERVE ON THE NEW JERSEY SUPREME COURT The CockerillCraigMooreLaw firm would like to congratulate the eminently qualified Judge Fernandez-Vina on being confirmed to serve on the New Jersey State Supreme Court....
NEW JERSEY SUPREME COURT RULES MOTHER WITH TERMINAL BRAIN CANCER NOT UNFIT
COURT FINDS MOTHER WITH TERMINAL BREAST CANCER TO BE FIT PARENT In a ruling published in November, from an opinion handed down in May, 2013, judge Lawrence R. Jones, of the Ocean County Superior Court, held that a primary custodial parent diagnosed with Stage IV...
CHOOSING YOUR HEALTH INSURANCE COVERAGE – CHOICES TO MAKE AND COSTS TO BALANCE
If you have health insurance through an employer provided plan, union plan, retirement plan, or Medicare you may not need to make any adjustments in your health insurance coverage your coverage will remain in place although you may have new options and protections...
WILL YOUR HOMEOWNERS’ POLICY COVER YOU IN ANOTHER BIG STORM?
In the aftermath of Hurricane Sandy, you may be asking yourself whether your current homeowners’ insurance policy will provide protection in the event another big storm hits New Jersey, or what you need to do to ensure that you have the coverage you need. You want to...
LESSON FIVE – WHAT MAKES A GOOD WITNESS GOOD?
There is more to being a good witness than being on the “right” side of the case. For example: A good witness, TELLS THE TRUTH. A good witness lets the attorneys make the objections. A good witness makes sense to the jurors; the words, word pictures, phrases, sounds,...
FOR AUTOMOBILE DEALERSHIPS – DO YOUR FORM DOCUMENTS COORDINATE WITH OR CONTRADICT EACH OTHER IN REGARD TO MANDATORY ARBITRATION PROVISIONS?
When a car dealership sells a vehicle, unless the transaction is paid for in full in cash at the time of delivery, a lease agreement or installment sales contract is executed simultaneously with the Retail Buyers Order. Arbitration clauses in a Retail Buyers Order are...
HEALTH PLANS AND PLAN PARTICIPANTS AFFECTED BY U.S. SUPREME COURT RULING
The U.S. Supreme Court handed down a decision in April, 2013, that reinforces the importance of expressly addressing the allocation of the costs of recovery for a third party injury suffered during the course of employment. In U.S. Airways, Inc. Employee Benefits Plan...
BACK TO SCHOOL MEANS YOUNG DRIVERS – AND THEIR PASSENGERS – AT RISK
As our children go back to school this year there will be new drivers driving to school for the first time, and many of their friends will celebrate being freed from taking the school bus to school. Yet most cars pulling into high school parking lots this fall will be...
THE NEED FOR ACCURATE RECORD KEEPING IN DIVORCE LITIGATION
The breakup of a marriage often has many difficult emotional and financial consequences. It is frequently a time of sadness, anger, uncertainty and even fear of the unknown. While many of those feelings are inevitable as long term relationships change, some of those...