Court Grants Defendant’s Motion to Dismiss and Compel Arbitration

Marshall Dennehey

American Rehab Kare, LLC a/a/o Tracy Alexandre v. Plymouth Rock Assurance Preferred Corp., Orange County Case No: 2022-SC-018083-O

This suit was brought as a breach of contract action for failure to pay PIP benefits. In response to the plaintiff’s complaint, Plymouth Rock filed a motion to dismiss and compel arbitration.

In its motion, Plymouth Rock cited both its policy language and the New Jersey Automobile Reparation Reform Act (AICA), N.J. Stat. Ann. §§ 39:6A-1 to 6A-35. This statute requires that every automobile liability insurance policy provide PIP benefits and permits not only the claimant, but “any party” to a PIP dispute, to choose dispute resolution rather than a traditional court action. Plymouth Rock argued that under the legal doctrine of lex loci contractus, the court must apply the law of the state in which the policy was issued and sought the enforcement of its right to choose dispute resolution, as opposed to continuing to litigate the issues presented in the lawsuit.

The court agreed and ruled in Plymouth Rock’s favor, dismissing the instant suit and ordering the plaintiff to engage and complete arbitration pursuant to New Jersey’s Automobile Reparation Reform Act.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Marshall Dennehey | Attorney Advertising

Written by:

Marshall Dennehey

Marshall Dennehey on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide