The New Jersey Supreme Court recently issued a ruling in favor of an insurance company, stating in a split decision that they are not responsible for compensating a victim of a surgical error because the practicing physician in the case lied on his application for medical malpractice coverage.
The case in question stems from a surgery performed by former Ocean County podiatrist, Dr. Sean Robert Stoddard, in 2010. The patient in this case, Lakewood resident Thomas De Marco, filed a lawsuit against Stoddard in October of 2011 after the surgery that Stoddard performed left him with a serious foot condition.
Stoddard had originally obtained medical malpractice coverage through Rhode Island Medical Malpractice Joint Underwriting Association (RIMMJUA), which requires a doctor who practices outside of the state to maintain at least 51 percent of his or her practice in Rhode Island. Stoddard indicated on his initial application and subsequent renewals that he met the criteria; however, the insurer eventually determined that this was not the case and retroactively cancelled Stoddard’s policy.
As the litigation against Stoddard and RIMMJUA continued, De Marco sought damages and Ocean County Superior Court Judge Mark Troncone ruled that the insurer should be required to provide coverage for Stoddard. RIMMJUA then filed an appeal, but a three-judge Appellate Panel upheld Judge Troncone’s ruling in January of 2014. The case was then brought to the highest court in New Jersey, where Supreme Court justices issued a divided opinion ruling on Tuesday, December 1st.
This recent decision brought many significant medical malpractice issues into focus, with justices divided in a 5-2 opinion and questions raised regarding the protection afforded to innocent patients who assume that their health care providers have appropriate insurance coverage. The majority opinion held that the insurance company cannot be bound by a medical malpractice insurance policy that is obtained through fraudulent behavior.
A dissenting opinion issued by Justice Barry T. Albin and Chief Justice Stuart Rabner argued that the ruling was against public policy and essentially allows the insurance company to avoid responsibility for failing to adequately investigate potential applicants. Justice Albin wrote, “The majority has decided on an approach that leaves an innocent patient without a source of compensation for damages suffered by the malpractice of his insolvent doctor.’’
The Supreme Court’s division in this case illustrates the highly contentious issues involved in medical malpractice law in New Jersey. It also serves to remind us that the case law in this area is constantly evolving, with new decisions spelling long-term implications for patients and their families. At Fronzuto Law Group, our attorneys concentrate specifically on this area of practice in order to remain at the forefront of current case law. Our diligence and dedication to pediatric and medical malpractice allows us to pursue additional education and a comprehensive understanding of the nuances and complexities that emerge in these cases over time.
If you have suffered as a result of a medical professional’s negligence, contact Fronzuto Law Group at 973-435-4551for a free comprehensive consultation. Our attorneys are passionate advocates for medical malpractice victims in New Jersey and we are always available to answer your questions.
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