ALLSTATE NEW JERSEY INSURANCE COMPANY, ET AL. VS. CARTERET COMPREHENSIVE MEDICAL CARE, PC, ET AL. (L-1469-23, MIDDLESEX COUNTY AND STATEWIDE) - Published

The issue presented on this appeal is whether claims of insurance fraud under the Insurance Fraud Prevention Act (the Fraud Act), N.J.S.A. 17:33A-1 to -30, and the New Jersey Anti-Racketeering Act (RICO), N.J.S.A. 2C:41-1 to -6.2, are subject to arbitration under the Automobile Insurance Cost Reduction Act (AICRA), N.J.S.A. 39:6A-1.1 to -35.  The resolution of that issue involves discerning and harmonizing the Legislature's intent in enacting the Fraud Act, RICO, AICRA, and the arbitration system set up under AICRA for the resolution of disputes concerning personal injury protection (PIP) benefits.  The court holds that insurance fraud claims under the Fraud Act and RICO are not subject to PIP arbitration under AICRA.  Accordingly, the court reverses and vacates three orders in this matter that compelled plaintiffs' Fraud Act, RICO, and related declaratory judgment claims to PIP arbitration.