You be the Judge: No can do broker

YOU BE THE JUDGE

If your experience with insurance has not been pleasant, this may interest you.

Many people are familiar with the Consumer Fraud Act (CFA) which, under certain circumstances, permits a successful plaintiff to recover three times his compensatory damages and legal fees.

In a recent decision of the New Jersey Appellate Division of the Superior Court, the application of the CFA against an insurance broker was evaluated.

Plaintiff had contracted to buy real estate. In anticipation of the closing, defendant insurance broker obtained an insurance policy for the property and plaintiff paid the premium. However, the policy was later voided by the carrier for delays in closing. Afterward, plaintiff took title and the property was uninsured when it was damaged.

Plaintiff sued the broker for negligence in failing to obtain insurance and under the CFA for failing to inform him that the property was uninsured.

The broker claimed that the CFA did not apply to insurance brokers.

YOU BE THE JUDGE: Can the Consumer Fraud Act be applied against the negligent acts of an insurance broker, the way it can be against other negligent people?

The Appellate Division held the insurance broker was exempt from liability under the CFA; the statute does not apply to the conduct of learned professionals in providing services within the scope of their professional licenses.

The decision points out that a courtroom can bring justice and may be the only way to protect your rights. Our Firm knows courtrooms; we have harnessed the power of the law in courtrooms to bring justice for our clients for decades in Hackensack, Paramus, Saddle River and throughout Bergen County, in Paterson, Wayne, Pompton Lakes and elsewhere in Passaic County, in Newark, West Orange and throughout Essex County, in Morristown and Parsippany in Morris County, in Elizabeth and Cranford in Union County, in Jersey City and North Bergen in Hudson County, in Trenton, Lawrenceville and Princeton in Mercer County and throughout the State of New Jersey, as well as New York City. Please contact us to discuss how we can help you in a new lawsuit or provide a "second opinion" about your pending lawsuit. There is no obligation for the initial consultation.