Superior Court or Forthright? That Is the Question

It is becoming more commonplace for plaintiffs to include PIP counts in their complaints for bodily injury claims, even though some medical providers may have taken assignments on behalf of the plaintiffs and proceeded to file PIP arbitrations in Forthright, which is the administrative organization designated by the Department of Banking and Insurance (DOBI) to administer dispute resolution proceedings regarding PIP benefits. Is it more advantageous and cost-effective to keep the matter in the Superior Court or remove it to Forthright? This is a question many defense attorneys face when it comes to these complaints. This article will discuss the pros and cons of each approach and, ultimately, determine which approach may be more advantageous and cost-effective on a case-by-case basis.

Many insurance policies contain a “Dispute Resolution” provision stating, “pursuant to N.J.A.C. 11:3-5-1, and the policy, any dispute submitted by an insured person that has not been resolved … may be submitted through the Personal Injury Protection (PIP) Dispute Resolution process … by initiating the process with Forthright.” Thus, plaintiffs have a forum choice when filing a claim for PIP reimbursement: Superior Court or Forthright. When a plaintiff chooses to file a complaint in Superior Court and includes a PIP count, the defendant must then determine whether that PIP count should be litigated in Superior Court or dismissed to Forthright. See N.J.S.A. 39:6A-5.1(b).