John Lane Named Co-Chair of the Transportation ADR Council

John has been named co-chair of the Transportation ADR Council, an arm of the Transportation Lawyer’s Association, a nationwide organization of attorneys in corporate, government, and private practice in the field of transportation law. Together with the ADR Council’s other newly-named co-chair, Dan Fulkerson, Esq., of Houston, John will manage the arbitration/mediation apparatus for resolution of legal disputes arising in the transportation industry.

Recognizing the value of alternate dispute resolution and the benefit it would avail to members of the transportation industry, John along with several other TLA members, sought to create a body of rigorously-trained arbitrators and mediators who are experts in transportation law, and a system of arbitration procedures that accommodate the parties. Under the leadership of Steve Uthoff, Esq. and Eric Benton, Esq., they formed the Transportation ADR Council.

In addition to his role with the ADR Council, John is a member of the American Arbitration Association, the New Jersey Association of Professional Mediators, the Garibaldi Inn of Court for Alternative Dispute Resolution, the Dispute Resolution Sections of the New Jersey and New York State Bar Associations, and has recently been accepted as an arbitrator for the Financial Industry Regulatory Agency, FINRA. John also serves as a mediator in the Superior Court of New Jersey.

Learn more about the TLA and the ADR Council at https://translaw.org.

Is PIP Reimbursement Arbitration Mandatory for a Self-Insured in New Jersey?

An appellate court in New Jersey says that it is. In Liberty Mut. Ins. Co. v. Penske Truck Leasing, Co., CEVA Freight, LLC, and Michael Kika, a recently published decision, the Appellate Division ruled that a self-insured must submit to mandatory arbitration in regard to a PIP reimbursement claim. An arbitrator, not a court, will decide whether the self-insured was negligent and must reimburse the PIP carrier. The decision is important because it is the first such published opinion.

In our post of June 17, 2019, we explained that a PIP-paying insurance carrier has a statutory right of direct reimbursement from a negligent motorist – a “tortfeasor” – not by way of subrogation, but through negotiation or arbitration. In Liberty Mutual, the court reiterated that statutory right and held that CEVA Freight, Inc., a self-insured trucker, is required to arbitrate the issue of whether its employee, Michael Kika, was negligent – thus a tortfeasor – in the operation of CEVA’s truck. If so, CEVA must reimburse Liberty Mutual.

Michael Kika, CEVA’s truck driver, allegedly caused a collision on Route 9 in Monmouth County, New Jersey, by blocking the roadway while attempting to back into a customer’s lot. Eugene Jerinsky, Liberty’s insured, struck the CEVA trailer while operating his pick-up truck. The police investigation and report raise some factual issues of possible fault on Jerinsky’s part. Liberty Mutul made a claim against CEVA for its PIP payments for Jerinsky, and CEVA denied the claim. Liberty sued to compel arbitration, and lost in the lower court. Liberty appealed.

The Appellate Division sided with Liberty. The court reviewed the history and case law regarding the New Jersey No Fault Law, and determined that its clear wording compelled that the issue of CEVA’s liability must be submitted to arbitration. CEVA’s status as a self-insured trucker does not change the conclusion. The Appellate Division endorsed the wording of Liberty’s position that –

. . . CEVA is required to arbitrate the issue of whether Kika was negligent and, therefore, a “tortfeasor,” to determine whether Liberty is “legally entitled” [another statutory phrase] to reimbursement of PIP benefits paid on behalf of Jerinsky

Unless overruled by the New Jersey Supreme Court or the Legislature, the Liberty Mutual decision will now require self-insured commercial vehicle operators to submit to arbitration of PIP carriers’ reimbursement claims.