INNOCENT THIRD PARTIES

By: Lee S. Befeler, Esq.

On December 1, 2015, the New Jersey Supreme Court decided Thomas and Cynthia DeMarco v. Sean Robert Stoddard, D.P.M. A copy of this decision is attached.

In deciding this case, the Supreme Court found that a medical malpractice carrier can rescind a policy and not provide coverage to an innocent third party. The Supreme Court distinguished a medical malpractice insurance carrier from an automobile insurance carrier. The Court once again affirmed that an automobile insurance carrier must provide the minimum mandatory insurance required by law.

In his dissent, Justice Albin wrote that the New Jersey public policy is clearly expressed in our law that mandates insurance coverage for innocent victims of medical malpractice.