RUNNER, RUNNER: NEW JERSEY COMPLAINT ALLEGES INSURANCE FRAUD AS A RESULT OF LAW FIRMS CHARGING RUNNERS FEES

By: Christine C. Ryan, Esq.

The class action Pierce Frauenhim v. The Voss Law Firm, P.C., OCN-L-3470-15, recently filed in Ocean County Superior Court, alleges that the Voss Law Firm and Posey Law Firm improperly charged clients $250.00 per file as an “initial file set up fee.” Clients were charged this amount, which was then given to public adjusters in exchange for Hurricane Sandy related referrals to the defendant law firms.

The Complaint also alleges that the firms charged duplicative fees for expert services allegedly performed by the defendants Stevenson Group and Daniel C. Hogan, P.A. The defendant law firms allegedly paid the public adjusters a 10% fee and, thereafter, obtained duplicative copies of prior public adjuster reports, charging the class members a second expert fee as if the second report was prepared for the insurance claim.

The plaintiff alleges fraud, asserting that the defendants engaged in a scheme designed to improperly charge the plaintiff and class members fees and costs associated with handling their Hurricane Sandy related insurance claims, including fees paid to “runners” as the term is defined in N.J.S.A. 2C:21-22.1A.