Legal Document: Liberty Mutual Insur Ance Co. Vs National Contin

On July 20, 2023 a Verified Complaint for MON-L-002269-23 submitted by DI STEFANO, ROBERT FRANCIS, CLARK & DI STEFANO, PC on behalf of LIBERTY MUTUAL INSURANCE CO. against NATIONAL CONTINENTAL INS. CO. was filed involving a dispute between Liberty Mutual Insurance Co., and National Continentalins. Co., for Auto Negligence-Property Damage in the District Court of Monmouth County.

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MON-L-002269-23 07/20/2023 12:44:27PM Pglof71 Trans ID: LCV20232135829

FILING ATTORNEY: ROBERT F. DISTEFANO, ESQUIRE
NJ ATTORNEY ID: 015861993
CLARK & DISTEFANO, P.C.
ATTORNEYS AT LAW
3318 STATE HIGHWAY 33
NEPTUNE, NJ 07753
{732} 528-9111
ATTORNEYS FOR PLAINTIFF{S}
OUR FILE NO: 6023.1665

LIBERTY MUTUAL INSURANCE COMPANY, SUPERIOR COURT OF NEW JERSEY
a Corporation LAW DIVISION: MONMOUTH COUNTY
PLAINTIFF(S} DOCKET NO:
-VS-

NATIONAL CONTINENTAL INSURANCE COMPANY CIVIL ACTION
DEFENDANT{S}
ORDER TO SHOW CAUSE BY SUMMARY ACTION

THIS MATTER being brought before the Court by Robert F. DiStefano, Esquire, of the Law Offices of

Clark & DiStefano, P.C., attorneys for the plaintiff, Liberty Mutual Insurance Company, seeking relief by way of

summary action pursuant to R. 4:67-1(a), based upon the facts set forth in the verified complaint filed herewith;

and the Court having determined that this matter may be commenced by order to show cause as a summary

proceeding pursuant to N.J.S.A. 2A:23B-22 and for good cause shown;

It is on this day of , 2023;

ORDERED, that the defendant, National Continental Insurance Company, appear and show cause on the

day of 2023 before the Superior Court at the Monmouth County

Courthouse in Freehold, New Jersey, at o'clock in the noon, or as soon thereafter as counsel

can be heard, why judgment should not be entered for:

1 Confirming an arbitration award entered on November 8, 2021 in the arbitration tribunal known as

Arbitration Forums, Inc. pursuant to N.J.S.A. 2A:23B-22;

2. Entering judgment against the defendant confirming an arbitration award entered on November 8,

2021 in the arbitration tribunal known as Arbitration Forums, Inc., in the amount of $3,348.21,

pursuant to N.J.S.A. 2A:23B-22;

CLARK & DISTERANO, P.C. » ATTORNEYS AT LAW « 3318 STATE HIGHWAY 33, NEPTUNE, NJ 07753
MON-L-002269-23 07/20/2023 12:44:27 PM Pg2of71 Trans ID: LCV20232135829

Entering judgment in favor of the plaintiff and against the defendant for counsel fees, Court costs and

interest from the date of the arbitration award pursuant to N.J.S.A. 2A:23B-25 and Rule 5-2 of the

rules of Arbitration Forums, Inc.; and

4 Granting such other relief as the Court deems equitable and just.

And it is further ORDERED that:

1. A copy of this order to show cause, verified complaint and all supporting affidavits or certifications

submitted in support of this application be served by regular and certified mail upon the defendant, within

days of the date hereof. Service shall be made at PO Box 89401, Cleveland, OH. This being

original process. Additionally, the above referenced documents shall be sent by email to Andy Mullet,

Claims. Representative of National Continental Insurance Company at Andrew-M-Mullet@progessive.com.

2. The plaintiff must file with the Court its proof of service of the pleadings on the defendant not later than

three (3) days before the return date.

3. The defendant shall file and serve a written answer, [an answering affidavit or a motion returnable on

the return date] to this order to show cause and the relief requested in the verified complaint and proof of

service of the same by , 2023. The answer, [answering affidavit or a motion], as the case

may be, must be filed with the Clerk of the Superior Court in the county listed above and a copy of the

papers must be sent directly to the chambers of Judge

4. The plaintiff must file and serve any written reply to the defendant's order to show cause opposition by

, 2023. The reply papers must be filed with the Clerk of the Superior Court in the county

listed above and a copy of the reply papers must be sent directly to the chambers of Judge

5. If the defendant does not file and serve opposition to this order to show cause, the application will be

decided on the papers on the return date and relief may be granted by default, provided that the plaintiff

filed a proof of service and a proposed form of order at least three days prior to the return date.

CLARK & DISTEFANO, P.C. * ATTORNEYS ATLAW « 3318 STATE HIGHWAY 33, NEPTUNE, NJ 07753
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6 If the plaintiff has not already done so, a proposed form of order addressing the relief sought on the

return date (along with a self-addressed return envelope with return address and postage) must be

submitted to the Court no later than three (3) days before the return date.

7. The defendant takes notice that the plaintiff has filed a lawsuit against you in the Superior Court of New

Jersey. The verified complaint attached to this order to show cause states the basis of the lawsuit. If you

dispute this complaint, you, or your attorney, must file a written answer, [an answering affidavit or a

motion returnable on the return date to the order to show cause and proof of service] before the return

date of the order to show cause.

These documents must be filed with the Clerk of the Superior Court in the county listed above. A list of

these offices is provided. Include a $. filing fee payable to the “Treasurer State of New Jersey.”

You must also send a copy of your answer, [answering affidavit or motion] to the plaintiffs attorney whose

name and address appear above, or to the plaintiff, if no attorney is named above. A telephone cali will

not protect your rights; you must file and serve your answer, [answering affidavit or motion] (with the fee)

or judgment may be entered against you by default.

8. If you cannot afford an attorney, you may call the Legal Services office in the county in which you live.

A list of these offices is provided. If you do not have an attorney and are not eligible for free legal

assistance you may obtain a referral to an attorney by calling one of the Lawyer Referral Services. A list

of these numbers is also provided.

9. The Court will entertain argument, but not testimony, on the return date of the order to show cause,

unless the Court and parties are advised to the contrary no later than days before the return

date.

JS.C.

CLARK & DISTEFANO, P.C. » ATTORNEYS ATLAW * 3318STATE HIGHWAY 33, NEPTUNE, NJ 07753
MON-L-002269-23 07/20/2023 12:44:27PM Pg4of71 Trans ID: LCV20232135829

LIBERTY MUTUAL INSURANCE COMPANY, SUPERIOR COURT OF NEW JERSEY
a Corporation LAW DIVISION: MONMOUTH COUNTY
PLAINTIFF{S} DOCKET NO:
-VS-

NATIONAL CONTINENTAL INSURANCE COMPANY CIVIL ACTION

DEFENDANT{S} ORDER ON RETURN OF ORDER
TO SHOW CAUSE

This matter having come before the Court on order to show cause dated , by the

plaintiff, Liberty Mutual Insurance Company, Robert F. DiStefano, Esquire, of the Law Offices of Clark &

DiStefano, P.C., attorneys for the plaintiff, Liberty Mutual Insurance Company, and the Court having considered

the papers submitted in support of and in opposition to the said application, and the Court having heard oral

argument of counsel, and for good cause having been shown;

It is on this day of 2023;

ORDERED, that judgment is hereby entered against the defendant, National Continental Insurance

Company, in the amount of $3,348.21, plus counsel fees in the amount of $3,999.40, plus Court costs in the

amount of $340.00, and interest from the date of the arbitration award, November 8, 2021, in the amount of

$21.37, for a total judgment in the amount of $7,708.98; and

IT IS FURTHER ORDERED that service upon the parties as directed by this order be done within

days of the date hereof.

JSC.

CLARK& DISTEFANO, P.C. * ATTORNEYS ATLAW « 3318 STATE HIGHWAY 33, NEPTUNE, NJ 07753
MON-L-002269-23 07/20/2023 12:44:27 PM Pg5of71 Trans ID: LCV20232135829

FILING ATTORNEY: ROBERT F. DISTEFANO, ESQUIRE
NJ ATTORNEY ID: 015861993 _
CLARK & DISTEFANO, P.C.
ATTORNEYS AT LAW
3318 STATE HIGHWAY 33
NEPTUNE, NJ 07753
{732} 528-9111
ATTORNEYS FOR PLAINTIFF{S}
OUR FILE NO: 5023.1665

LIBERTY MUTUAL INSURANCE COMPANY, SUPERIOR COURT OF NEW JERSEY
a Corporation — LAW DIVISION: MONMOUTH COUNTY

PLAINTIFF(S} DOCKET NO:
- =

NATIONAL CONTINENTAL INSURANCE COMPANY CIVIL ACTION

DEFENDANT(S}
CERTIFICATION OF JENNIFER SALGADO

|, Jennifer Salgado, hereby certifies:

1. | am a claims representative employed by Liberty Mutual Insurance Company and am familiar with a

claim brought by Liberty Mutual seeking to recover automobile property damage benefits paid by Liberty

on behalf of Arthur Hall.

2. To the best of my knowledge, the information contained in the verified complaint is truthful and

accurate.

CLARK & DISTEFANO, BC « ATTORNEYS ATLAW « 3318 STATE HIGHWAY 33, NEPTUNE, NJ 07753
MON-L-002269-23 07/20/2023 12:44:27 PM Pg6of71 Trans ID: LCV20232135829

| hereby certify that the foregoing statements made by me are true. | am aware that if any of the

foregoing statements made by me are wilifully false, | am subject to punishment.

Dated: 7/20/2023

Jennifer Salgado

CLARK & DISTEFANO, P.C. s ATTORNEYS ATLAW © 3318 STATE HIGHWAY 33, NEPTUNE,NJ 07753
MON-L-002269-23 07/20/2023 12:44:27PM Pg7of71 Trans ID: LCV20232135829

LIBERTY MUTUAL INSURANCE COMPANY, SUPERIOR COURT OF NEW JERSEY
a Corporation LAW DIVISION: MONMOUTH COUNTY
PLAINTIFF{S} DOCKET NO:
-VS-

NATIONAL CONTINENTAL INSURANCE COMPANY CIVIL ACTION

DEFENDANT{S}
VERIFIED COMPLAINT ON ORDER TO SHOW CAUSE

The plaintiff, Liberty Mutual Insurance Company, with offices located at 100 Willowbrook Road, Freehold,

New Jersey, 07728 by way of verified complaint against the defendant, National Continental Insurance Company,

hereby states:

1. At all relevant times hereto, the plaintiff was an insurance company authorized to transact insurance
business in the State of New Jersey and provided policies of automobile liability insurance to members of
the general public and to Arthur Hall in particular.
2 At ail relevant times hereto, the defendant, National Continental Insurance Company, was an
insurance company authorized to transact insurance business in the State of New Jersey.
3. This matter arises from a motor vehicle accident which occurred on May 15, 2021 in irvington, New
Jersey. On that date, the plaintiff had in effect a policy of automobile liability insurance which included
coverage for Mr. Hall for automobile property damage benefits.
4. On the aforementioned date, an automobile owned by Mr. Hall and operated by Krystle Hall was
involved in the above referenced motor vehicle accident caused by a vehicle operated by Shawn Reid
and insured by the defendant.
5. Following the above referenced motor vehicle accident, Mr. Hall made a claim to the plaintiff for
automobile property damage benefits.
6. On July 20, 2021, the plaintiff filed an arbitration action against the defendant in the arbitration tribunal
known as Arbitration Forums, Inc., a venue in which both parties were members. The defendant received
the plaintiff's arbitration action and filed an answer to said action on October 4, 2021. The defendant
requested a deferment of the action pending a coverage investigation.

CLARK & DISTEFANO, P.C. « ATTORNEYS ATLAW © 33185TATE HIGHWAY 33, NEPTUNE, NJ 07753
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7. On October 5, 2021, an arbitrator assigned to this matter by Arbitration Forums rendered a decision
regarding the defendant's request to have this matter deferred. The deferment request was denied. The
arbitrator concluded that the defendant failed to provide any evidence supporting a deferment request.
The matter was then listed for a hearing.
8. Although the defendant had the opportunity to submit an additional request, assert affirmative defenses
or provide a more detailed answer, the defendant failed to do so. An arbitration hearing was conducted on
November 8, 2021.
9. The arbitrator entered a written decision on the above referenced date and concluded that the
defendant's insured was 85% responsible for the motor vehicle accident of May 15, 2021. The arbitrator
entered a monetary award in the amount of $3,348.21.
10. Arbitration Forums advised all parties of the entry of the above referenced arbitration award and
provided copies of the arbitration award to the parties.
11, Although the defendant had the ability to do so, it never filed an internal appeal with Arbitration
Forums regarding the award or assert any post-judgment defenses.
12. Since the entry of the above referenced arbitration award, the defendant has never moved in the
Superior Court of New Jersey to either vacate or modify the arbitration award.
13. Both Arbitration Forums, the plaintiff and the plaintiff's counsel have provided muitiple copies of the
arbitration award to the defendant and requested the payment of said award. To date, the arbitration
award has not been paid.

a) Confirming the arbitration award entered in favor of the plaintiff and against the defendant in
Arbitration Forums, Inc. pursuant to N.J.S.A. 2A:23B-22;

b) Entering judgmentin favor of the plaintiff and against the defendant in the amount of the arbitration
award together with interest and costs pursuant to N.J.S.A. 2A:23B-26;
c) Entering an award of counsel fees pursuant to N.J.S.A. 2A:23B-25(c) and Rule 5-2 of Arbitration
Forums, Inc.; and

d) For any other relief the Court may deem just, fair, and equitable.

Dated: 07/20/23 Is! Kade F Dit
Robert F. DiStefano, Esquire
Attorney for Plaintiff

(CLARK & DISTEFANO, P.Co ATTORNEYS ATLAW « 3318 STATE HIGHWAY 33, NEPTUNE, Nj 07753
MON-L-002269-23 07/20/2023 12:44:27PM Pg9of71 Trans ID: LCV20232135829

LIBERTY MUTUAL INSURANCE COMPANY, SUPERIOR COURT OF NEW JERSEY
a Corporation LAW DIVISION: MONMOUTH COUNTY
PLAINTIFF{S} DOCKET NO:
- =

NATIONAL CONTINENTAL INSURANCE COMPANY CIVIL ACTION

DEFENDANT{S}
CERTIFICATION OF COUNSEL FEES
PURSUANT TO R.P.C. 1.5

ROBERT F. DISTEFANO, ESQ., OF FULL AGE, HEREBY CERTIFIES AS FOLLOWS:

1 | am an attorney at law licensed to practice in the State of New Jersey. | am a member of the Law
Offices of Clark & DiStefano, P.C., attorneys for the plaintiff, Liberty Mutual Insurance Company. As
such, | am fully familiar with the facts stated herein. | offer this certification in support of the plaintiff's
request for counsel fees and costs. This certification is made pursuant to Rules of Professional
Conduct 1.5.
| was admitted to practice law in the State of New Jersey in 1994. In that same year, | was admitted to
practice law in the Commonwealth of Pennsylvania. In 2001, | was admitted to practice law in the
State of New York.
Since my admission to the Bar of the State of New Jersey, my practice has specialized in civil
litigation. | have tried numerous bench and jury trials for bodily injury, products liability, insurance.
coverage issues, property damage, and recovery of personal injury protection benefits.
My office has represented the plaintiff in numerous subrogation actions and arbitration proceedings
since approximately 1995.
An arbitration application was filed by this office on behalf of the plaintiff in Arbitration Forums, Inc.
After an arbitration hearing, an arbitration award was entered in favor of the plaintiff and against the
defendant on November 8, 2021. After the defendant failed to honor the arbitration award, the plaintiff
retained my office to enforce the arbitration award in the Superior Court of New Jersey.

CLARK & DISTEFANO, P.C. * ATTORNEYS ATLAW « 3318STATE HIGHWAY 33, NEPTUNE, NJ 07753
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6 | am currently charging the plaintiff $200.00 per hour in reference to this matter. | believe said rate is
reasonable based on my experience and this firm's extensive relationship with the plaintiff.
7. | have personally spent the following time and incurred the following expenses regarding this application:

Date Legal Services Time Expended

5/11/23 Telephone call with Andy Mullet of National
Continental

05/12/23 Review rules of Arbitration Forums regarding
procedures for enforcement of an unpaid
arbitration award

05/12/23 Prepare letter to the defendant regarding payment of the
arbitration award

05/26/23 Review rules of Arbitration Forums regarding
service of notice of an unpaid arbitration award on
the defendant and prepare letter to Arbitration
Forums requesting assistance in payment of the award
to the senior representative of the defendant

05/26/23 Prepare letter to defendant requesting payment
of the arbitration award

07/06/23 Conduct legai research regarding confirmation of an
outstanding arbitration award and remedies available to
the plaintiff 5.2

07/07/23 Preparation of an order to show cause, verified complaint,
certification, certification pursuant to RPC 1.5 and
brief in support of confirmation of an arbitration award 8.5

07/12/23 Prepare modifications and corrections to order to show
cause and supporting pleadings 1.2

Total (16.6 x 200.00) = 3,999.40

Costs include the filing of the complaint in the amount of $250.00, a motion fee of $50.00, and service to the

defendant in the amount of $40.00.

Total Counsel fees and Costs= $4,339.40

CLARK & DISTEFANO, P.C. * ATTORNEYS ATLAW © 3318 STATE HIGHWAY 33, NEPTUNE, NJ 07753
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8 It is anticipated that | will spend additional time reviewing an answer and supporting pleadings filed by

the defendant in this matter as well as time preparing for and appearing at oral argument on the return

date of the plaintiffs order to show cause. It is respectfully requested that the Court permit me to

prepare a supplement certification of counsel fees for any time expended in reference to those activities.

Dated: 07/20/23 Is) Rakes7 Dé
Robert F. DiStefano, Esquire
Attorney for Plaintiff

CLARK & DISTEFANO, P.C. © ATTORNEYS ATLAW © 3318 STATE HIGHWAY 33, NEPTUNE, NJ 07753
MON-L-002269-23 07/20/2023 12:44:27 PM Pg12o0f71 Trans ID: LCV20232135829

LIBERTY MUTUAL INSURANCE COMPANY, SUPERIOR COURT OF NEW JERSEY
a Corporation LAW DIVISION: MONMOUTH COUNTY
PLAINTIFF{S} DOCKET NO:
-VS-

NATIONAL CONTINENTAL INSURANCE COMPANY CIVIL ACTION

DEFENDANT{S}
CERTIFICATION OF ROBERT F. DISTEFANO, ESQ.

Robert F. DiStefano, Esquire, hereby certifies:

4
tam an attorney at law licensed to practice in the State of New Jersey. | am a member of the Law

Offices of Clark & DiStefano, P.C., attorneys for the plaintiff, Liberty Mutual insurance Company. | offer

this certification in support of the plaintiffs Order to Show Cause and verified complaint seeking to

confirm an arbitration award entered against the defendant.

2. As set forth in the plaintiffs Verified Complaint, this matter arises from a motor vehicle accident which

occurred on May 15, 2021 in Irvington, NJ. On the date of the accident, the plaintiff provided a policy of

automobile liability insurance on behalf of Arthur Hall. One of the coverages provided to Mr. Hall was for

automobile property damage if an automobile he owned and covered under the plaintiff's policy

sustained damage as a result of an accident.

3. On May 15, 2021, Mr. Hall was the owner of a 2013 Toyota Camry. This vehicle was covered under

the plaintiff's policy.

4. On the above referenced date, the 2013 Toyota Camry was being operated by Krystle Hall who is a

family member of Mr. Hall. The vehicle was involved in an accident with a vehicle operated by Shawn S.

Reid and owned by Melissa Walker. As a result of the accident, Mr. Hall’s vehicle was damaged and he

made a claim to the plaintiff for automobile property damage benefits.

CLARK & DISTEFANO, P.C. « ATTORNEYS ATLAW «+ 3318STATE HIGHWAY 33, NEPTUNE, NJ 07753
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5. After investigating this matter and resolving Mr. Hall’s claim, the plaintiff determined that Mr. Reid was

responsible for causing the accident and identified Mr. Reid’s automobile liability insurance carrier as

GEICO Insurance Company.

6. Since the plaintiff and GEICO were members of an arbitration tribunal administered by Arbitration

Forums, Inc., the plaintiff initiated an arbitration action against GEICO in Arbitration Forums on July 20,

2021. On or about September 3, 2021, GEICO filed an answer to the plaintiff's arbitration action and

named the defendant as an additional respondent. GEICO alleged that it was not the automobile liability

insurance carrier for Mr. Reid on the date of the accident and that the defendant was the proper carrier.

7. The defendant received the plaintiff's arbitration action along with GEICO’s answer and claim against

the. defendant and submitted an answer on or about October 4, 2021. The defendant requested a

deferment of the arbitration action pending a coverage investigation.

8. Attached hereto as Exhibit “A” is a copy of the plaintiff's arbitration action, GEICO's answer and claim

against the defendant as well as an activity log maintained by Arbitration Forums. The activity log

describes all events to include any submissions by any of the parties.

9. Pursuant to the Rules of Arbitration Forums which are attached hereto as Exhibit “B’, the defendant

was obligated to file any and all affirmative defenses: and exclusions of coverage when the deferment

request was made. !f the defense or exclusion was available when the deferment request was made, the

defense of exclusion is considered waived if not brought in a timely manner. The specific rule is Rule 2-

10 which states:

An affirmative defense/exclusion is waived if it is available when the deferment request is made
but is not asserted. This does not prohibit the responding company from subsequently asserting
an affirmative defense/exclusion at the time it becomes available.

410. Pursuant to Rule 2-4, a party alleging a deniai of coverage must do so in a specific format and

provide a denial of coverage letter as part of its evidence.

41. On October 5, 2021, an arbitrator assigned to this matter by Arbitration Forums rendered a decision

regarding the defendant's request to defer this matter. The deferment was denied. The arbitrator entered

a published decision in which the arbitrator concluded that the defendant failed to provide any evidence

to support the deferment request. (Exhibit “C’).

(CLARK & DISTEFANO, P.C. « ATTORNEYS ATLAW « 3318 STATE HIGHWAY 33, NEPTUNE, NJ 07753
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12. As a result of the defendant’s request to defer this matter being denied, the matter proceeded on its

merits. On November 8, 2021, a second arbitrator assigned to this matter by Arbitration Forums decided

the issue of whether the plaintiff established negligence on the part of the defendant’s insured and

whether the plaintiff established any damages. A written arbitration award was entered on November 8,

2021. The arbitrator concluded that the defendant’s insured was 85% responsible for the motor vehicle

accident of May 15, 2021 and entered an award of damages in the amount of $3,348.21. (Exhibit “D”).

13. Pursuant to Arbitration Forums’ Rule 5-1, arbitration awards are to be paid within thirty (30) days of

the decision publication date. Pursuant to Arbitration Forums’ Rule 5-2, when the arbitration award is not

paid within 30 days of its publication date, the prevailing party is required to send a copy of the

arbitration award to the other party demanding payment.

14. On December 9, 2021, the plaintiff provided notice to the defendant of the unpaid arbitration award

and requested payment. (Exhibit “E”).

15. Pursuant to Arbitration Forums’ Rule 5-2 (b), if the arbitration award remains unpaid for an additional

30 days after notice was sent, the party seeking to enforce the arbitration award is required to contact

Arbitration Forums who then contacts the other party and requests payment of the award.

16. in this matter, Arbitration Forums sent a request to the defendant to pay the arbitration award on

February 24, 2022. (Exhibit “F’).

17. After the plaintiff made multiple attempts to have the defendant pay the arbitration award, the plaintiff

retained this office to seek to enforce the arbitration award through an action in the Superior Court of

New Jersey. Prior to filing that action, personally contacted Andy Mullet, a claims representative

employed by the defendant. | had a detailed telephone conversation with Mr. Mullet on May 11, 2023.

CLARK & DISTEFANO, P.C. ATTORNENS ATLAW © 3318 STATE HIGHWAY 33, NEPTUNE, NJ 07753
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18. On May 15, 2023, | confirmed my telephone conversation with Mr. Mullet in an email. In the email, |

provided detailed reasons why the arbitration award entered on November 8, 2021 should be honored

by the defendant and advised Mr. Mullet that if the matter could not be resolved, the plaintiff had

authorized my office to file an Order to Show Cause seeking to confirm the arbitration award. A copy of

my May 15, 2023 email is attached hereto as Exhibit “G”.

19. After not receiving a response from Mr. Mullet, | again corresponded with him by email on May 26,

2023 and provided him with another copy ofthe arbitration award. (Exhibit “H’).

20. Mr. Mullet resporided to my May 26, 2023 email and indicated that the defendant was unwilling to

pay the arbitration award. Mr. Mullet indicated that the defendant was asserting a denial of coverage and

provided a denial of coverage letter with the email. (Exhibit “I’).

21. Based on my review of the denial letter from the defendant which was dated March 15, 2022, the

defendant alleged that it provided only a “special automobile insurance policy’ to its insured for the motor

vehicle accident of May 15, 2021. The defendant alleged that the policy issued on behalf of its insured

did not include coverage for automobile property damage.

22. As previously indicated, pursuant to Arbitration Forums’ Rule. 2-4, the defendant was obligated to

raise a denial and/or disclaimer of coverage at the time it filed an answer and requested a deferment in

this matter. Additionally, the defendant was required to provide a copy of the denial letter as part of its

evidence.

23. As clearly indicated in the decision which addressed the defendant’s request to defer this matter, the

defendant failed to provide any evidence to either support a deferment or to support a denial and/or

disclaimer of coverage. It should have been obvious to the defendant as of the date of the filing of the

plaintiff's arbitration action that the policy it provided to its insured regarding the motor vehicle accident

of May 15, 2021 did not provide any coverage for automobile property damage. That information was

solely in the possession of the defendant and should have and could have been raised as an affirmative

defense to the plaintiff's arbitration action. The defendant's failure to raise this affirmative defense in a

Proper manner at the proper time constituted a waiver of that defense pursuant to the Rules of

Arbitration Forums.

CLARK & DISTEFANO, P.C. * ATTORNEYS ATLAW © 3318 STATE HIGHWAY 33, NEPTUNE, NJ 07753
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24. The specific Rule, 2-4, states as follows:

The parties must raise and support affirmative pleadings or defenses in the affirmative/pleadings
defenses section or they are waived...

If a denial/disclaimer of coverage is being pled...the party will be ruled out of jurisdiction so long
as a copy of the denial/disclaimer of coverage letter to the party seeking liability coverage for the
loss is provided as part of the evidentiary material submitted. If no such letter is provided or
where the denial concerns concurrent coverage...the case will heard and the arbitrator(s)
will consider and rule on the coverage defense.

25. As clearly set forth in the above cited rule, the defendant was required to raise its denial of coverage

and support that denial of coverage with a denial of coverage letter. The defendant failed to do so and as.

such pursuant to the Rules of Arbitration Forums that defense was waived.

26. As | advised Mr. Mullet in my May 15, 2023 letter, even if the defendant failed to properly raise the

above cited defense at the time of the hearing, they still had the ability to raise that defense post-

decision. Specifically, Arbitration Forums’ Rule 3-9 permits a responding company to raise a denial

and/or disclaimer of coverage after the entry of an arbitration award. The Rule states in part:

A responding company may assert the coverage defenses of no liability policy in effect, denial of
coverage, policy limits, or liability deductible/SIR via AF’s website up to 60 calendar days from
the decision publication date and a minimum of 60 calendar days before the statute of limitations
expires.

A copy of the denial of coverage letter to the party seeking coverage for the loss, or proof of
policy limits, liability deductible/SIR, must accompany the inquiry or no action will be taken.

27. As indicated in the above cited rule, the defendant still had the ability to assert a denial of coverage

60 days after the entry of the arbitration award in this matter. The first time the defendant even raised the

issue of no coverage was in response to my May 15, 2023 email.

28. In addition to failing to abide by the terms of the Rules of Arbitration Forums, the defendant never

moved in the Superior Court of New Jersey to either modify or vacate the arbitration award. They were

aware of the fact that the arbitration award had been entered against them and received multiple copies

from the plaintiff as well as Arbitration Forums. To date, the defendant has still not moved to either

modify or vacate the arbitration award and it remains a valid award.

(CLARK & DISTEFANO, P.C. ¢ ATTORNEYS ATLAW « 3318STATE HIGHWAY 33, NEPTUNE, NJ 07753
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29. As can be seen from the attached exhibits, the plaintiff has attempted to resolve this matter with the

defendant without the need to file an action in Court. The defendant has received multiple copies of the

arbitration award and has steadfastly refused to honer the award. Although this is a small award, it is

clear that the defendant will not honor the award unless an action is brought to enforce the award and

enter judgment in the amount of the arbitration award.

30. Attached hereto as Exhibit “J” is a separate certification from myself prepared in accordance with

RPC 1.5.

31.it is respectfully requested that the Court enter an order confirming the arbitration award and entering

judgment in the amount of the arbitration award. | also request that the Court enter an award of counsel

fees and costs.

32. As set forth in the attached brief, both the Rules of Arbitration Forums and New Jersey law permit

the entry of counsel fees, costs and interest if a party has to move te enforce the arbitration award in the

Superior Court.

33. Although this is a small arbitration award, it is clear that the defendant has no intention of paying the

award even though it was properly entered. Since the defendant’s inaction necessitated the filing of this

action, it is only equitable that they pay counsel fees and costs associated with bringing this action.

I hereby certify that the foregoing statements made by me are true. | am aware that if any of the

foregoing statements made by me are willfully false, | am subject to punishment.

Dated: 07/20/23 Is! Kahest Fi
Robert F. DiStefano, Esquire
Attorney for Plaintiff

CLARK & DISTEFANO, P.C. * ATTORNEYS ATLAW © 3318 STATE HIGHWAY 33, NEPTUNE, NJ 07753
MON-L-002269-23 07/20/2023 12:44:27 PM Pg18of71 Trans ID: LCV20232135829
MON-L-002269-23 07/20/2023 12:44:27 PM Pg19o0f71 Trans ID: LCV20232135829

ARBITRATION
ARBITRATION Forums, Inc.
FORU! ARBITRATION CASE INFORMATION
‘Membership driven. Innovation focused. CASE ID: A2100F5B0C6-C1

CASE SUMMARY
Date Filed: 07/20/2021 Location of Loss: Irvington, New Jersey
Date of Loss: 05/15/2021 Negligence Law: 10% Comparative

Parties Insured Name Claim Number
00232-0002 LIBERTY MUTUAL FIRE INS -
PERSONAL CLAIM Arthur Hall 045651408-01
00226-0002 GEICO - GOVERNMENT EMPLOYEES
INS CO Melissa Walker 8721279310000001
00047-0034 NATIONAL CONTINENTAL
INSURANCE COMPANY Shawn S Reid

DECISION SUMMARY

LIBERTY MUTUAL FIRE INS - PERSONAL CLAIM (Arthur Hall)
Liability
Party Admitted Proven Duties Breached
NATIONAL CONTINENTAL INSURANCE COMPANY = 85% Unsafe backing.
(Shawn S Reid)
LIBERTY MUTUAL FIRE INS - PERSONAL CLAIM = 5% Improper jookout.
(Arthur Hall)
(
COLLISION

Award Summary — 2013 TOYO
Recov. Award
Damage Award Summary Damages Ded. Legal Fees Amount Payments Owed
NATIONAL CONTINENTAL INSURANCE - -
COMPANY (Shawn $ Reid) 85% Liable $2,498.21 $850.00 $3,348.21 $3,348.21
Company Totals $2,498.21 $850.00 = $3,348.21 = $3,348.21

GEICO - GOVERNMENT EMPLOYEES INS CO (Melissa Walker)
Liability
No Liability Decision Rendered. Party might be Out of Jurisdiction or nothing to recover from other parties.

NATIONAL CONTINENTAL INSURANCE COMPANY (Shawn S Reid)
Liability

Party Admitted Proven Duties Breached
LIBERTY MUTUAL FIRE INS - PERSONAL CLAIM 0% 15% Improper lookout.
(Arthur Hal!)
NATIONAL CONTINENTAL INSURANCE COMPANY — 5% Unsafe backing.
(Shawn S Reid)

Printed-3:4/4:0/2022-8:09-At of-12
MON-L-002269-23 07/20/2023 12:44:27 PM Pg 20o0f71 Trans ID: LCV20232135829
ARBITRATION Forums, INC. ARBITRATION CASE INFORMATION
" Membership driven. Temavation focused. CASE ID: A2100FSB0C6-C1

eee ee
LIBERTY MUTUAL FIRE INS - PERSONAL CLAIM (Arthur Hall)

PARTY INFORMATION
Company Name: LIBERTY MUTUAL FIRE INS - PERSONAL Claim Number: 045651408-01
CLAIM Policy Number:
Company Code: 00232-0002 Policy Issue State:
Insured Name: Arthur Hall Mailing Address:
Line of Insurance: Personal

LIABILITY
Liability Arguments
LOCATION: Melrose Ave & Wills Place - Irvington NJ

FACTS OF LOSS: Wills Place and Melrose are both 1-way streets. Liberty was on Wills Place. Liberty stopped at the stop
sign on Wills Place was making a turn to enter Melrose Place. As Safeco looked down the street in the praper direction,
Liberty proceeded to make the turn when Liberty was struck by Geico wha was backing the wrong way down the one-way
street.

DUTIES OWED/BREACHED: Going the wrong way on a one-way street

LIABILITY: The police came to the scene and wrote a report. The parties are listed as:

Vehicle 1 Geico
Vehicfe 2 Liberty

The narrative is Geico was Southbound on Melrose Ave and came upon a disabled vehicle blocking him. He began backing
Northbound on Melrose. Melrose is a 1-way street. Geico was backing up on a one-way street in the wrong direction. Liberty
was at the stop sign, looked to the feft, made a right hand turn where Geico was backing up. The police pitt liability on both
parties (see Police report!,)

However, Liberty should not be expecting a car to be backing up down a street going the wrong way. That violates New
Jersey traffic law. Had Geico not been backing down the wrong way, this accident would not have happened.

O Case

O Michael Norman
Exit Workflow

Revisit Liability
Loss State: New Jersey

Printed 11/10/2021 8:09 AM Page 2 of 12
MON-L-002269-23 07/20/2023 12:44:27 PM Pg 21of71 Trans ID: LCV20232135829

RBITRATION Fol RUMS, INC. ARBITRATION CASE INFORMATION
embership driven. Imovation focused. CASE ID: A21 OOFSBOCE-C1

Loss Date: 5/15/2021
Filing Parties: (3)

LIBERTY MUTUAL FIRE INS - PERSONAL CLAIM (ARTHUR HALL)
GEICO - GOVERNMENT EMPLOYEES INS CO (MELISSA WALKER)
NATIONAL CONTINENTAL INSURANCE COMPANY (SHAWN S REID)
AF Case ID: A2100F5B0C6-C1
Negligence Laws: 50% Comparative

Evidence Manager

WORKFLOW STEPS

Liability Arguments

Review & Submit

Revisit Liability Show Adverse Party's Arguments
Arguments

LOCATION: Melrose Ave & Wills Place ~ Irvington NJ
FACTS OF-LOSS: Wills Place and Melrose are both 1-way streets. Liberty was on Wills Place. Liberty stopped at the stop
sign on Wills Place was making a turn to enter Melrose Place. As Safeco looked down the street in the proper direction,
Liberty proceeded to make the turn when Liberty was struck by Geico who was backing the wrong way down the one-way
street.

DUTIES OWED/BREACHED: Going the wrong way on a one-way street

LIABILITY: The police came to the scene and wrote a report. The parties are listed as:

Vehicle 1 Geico
Vehicle 2 Liberty

The narrative is Geico was Southbound on Melrose Ave and came upon a disabled vehicle blocking him. He began backing
Northbound on Melrose. Melrose is a t-way street. Geico was backing up on a one-way street in the wrong direction. Liberty
was at the stop sign, looked to the left, made a right hand tum where Geico was backing up. The police put liability on both
parties (see Police report.)

Printed.11/10/2021.8:09 AM. Page 3 of 12
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N RBITRATION Forums, Inc.
“Membership driven. Innovation foised.

Admitted Liability
ARBITRATION CASE INFORMATION
CASE ID: A2100F5B0C6-C1

LIBERTY MUTUAL FIRE INS - PERSONAL CLAIM (ARTHUR HALL) admits 0% liability for GEICO - GOVERNMENT
EMPLOYEES INS CO (MELISSA WALKER)'s damages.
LIBERTY MUTUAL FIRE INS - PERSONAL CLAIM (ARTHUR HALL) admits 0% liability for NATIONAL CONTINENTAL
INSURANCE COMPANY (SHAWN S REID)'s damages.
Liability Evidence

ID Evidence Type Description Pages

Police Report
NIA Statute
Applicant Recorded
NIA
Statement
Applicant Recorded named insured statement
NA
Statement

COLLISION

Accepts Policy Limits: Yes Accepts Remaining Balance: Yes
Accepts Pro Rata: Yes Agrees to reimburse insured Yes
out-of-pocket expenses:
Joint & Several: No
Joint & Several Desc: NA
Policy Limits Note:

Coverage Exclusions
There are no caverage exclusions.

Feature — 2013 Toyo (Decision Published)
Feature Name: 2013 Tor Remittance Add

Case Info

Judge

David F Bauman Track Judge’s New Case

Case No.

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Document Filed Date

July 20, 2023

Case Filing Date

July 20, 2023

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