September 24, 2019
The Supreme Court case of Haines v. Taft, 237 N.J. 271 (2019) held that uncompensated medical expenses incurred as a result of an automobile accident, that exceeded the plaintiffs’ $15,000 PIP (Personal Injury Protection) coverage limits, were inadmissible and therefore not recoverable in motor vehicle negligence actions. The Court relied on its interpretation of N.J.S.A.39:6A-12 and found that the Legislature intended to bar plaintiffs from recovering expenses that exceeded their PIP benefits.
Governor Phil Murphy signed two bills to allow recovery of uncompensated medical expenses resulting from auto accidents. Governor Murphy said that the bills are intended to overturn the March 26, 2019 decision of the New Jersey Supreme Court in Haines v. Taft.The enactment of Senate Bill Nos. 2432 and 3963 was intended to ensure that low-income drivers, who obtain lesser PIP coverage,have the ability to recover unreimbursed medical expenses from those who caused their injuries.
As noted in the accompanying statements to the bills, these bills permit a party injured in an automobile accident to recover, as part of the recovery of uncompensated economic loss, all unreimbursed medical expenses not covered by the PIP limits applicable to the injured party and sustained by the injured party.
For further information, contact Joe Gallo in our Florham Park office at (973) 822-1110.