The Appellate Division recently set forth an opinion that greatly empowers PIP carriers to settle issues of liability with commercial automobile tortfeasors, including those self-insured, in an intra-party arbitration setting (include link to NJ Courts opinion).

In Liberty Mutual v. Penske and CEVA Freight, N.J. Super (App.Div. 2019) (Decided May 23, 2019, DOCKET NO. A-5624-17T3), Liberty Mutual provided its insured driver PIP benefits, and subsequently sought reimbursement against the self-insured tortfeasor under N.J.S.A. 39:6A-9.1, in arbitration. The self-insured argued it was not a tortfeasor, that arbitration was an improper forum and that the matter, as to fault, should be resolved in a state court action. The trial court agreed with the tortfeasor’s position, and Liberty Mutual appealed.

The issue before the Appellate Division was whether the dispute between Liberty Mutual and the alleged self-insured tortfeasor should be resolved in arbitration under N.J.S.A. 39:6A-9.1 or in state court. The Appellate Division held that the matter is to be resolved in arbitration. The Appellate Division sided with Liberty Mutual and reversed the trial court holding and remanded it back. The Appellate Division indicated that PIP reimbursement issues should be arbitrated as should related questions of fact that could be weigh on liability.