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N.J. MANUFACTURERS INS. v. GONSALVES

841 A.2d 512 (2003)

366 N.J. Super. 459

NEW JERSEY MANUFACTURERS INSURANCE COMPANY, Plaintiff, v. Peggy J. GONSALVES; Bear Apothecary Shoppe, Inc. t/a Morton Barnett, Inc.; St. Lawrence Rehabilitation Center; Central Jersey MRI Group; Edward Von Der Schmidt, M.D.; and St. Francis Medical Center, et al., Defendants.

Superior Court of New Jersey, Law Division, Mercer County.

Decided February 3, 2003.

Attorney(s) appearing for the Case

Patricia Hart McGlone, West Trenton, for plaintiff.

Charles F. Harris, Princeton, for defendant Interested Party Bear Apothecary Shoppe, Inc. t/a Morton Barnett, Inc. (Mason, Griffin & Pierson, P.C.).

Scott I. Unger, Princeton, for defendant Peggy Gonsalves (Stark & Stark, P.C.).

Tara K. Kelly, Princeton, for defendant Interested Party St. Lawrence Rehabilitation Center (Dechert Law Firm).

Alicia A. Zonetti, Lawrenceville, for defendant Interested Parties Central Jersey MRI Group and Edward von der Schmidt, III, M.D. (Fox, Rothschild, O'Brien & Frankel, LLP).

Jennifer E. Troast, Trenton, for defendant Interested Party St. Francis Medical Center (Lenox, Socey, Wilgus, Formidoni, Brown, Giordano & Casey, LLC).

Arnold C. Lakind, Lawrenceville, for defendant Interested Party Trenton Orthopedic Group, P.A. (Szaferman, Lakind, Blumstein, Blader, Lehmann & Goldshore, P.C.).

SABATINO, J.S.C.

The legal issue before this Court is whether an insurance company, upon discovering apparent fraud by its policyholder, has a right to the restitution of funds from innocent medical providers that had supplied goods or services to the policyholder. The issue has not been resolved by our state appellate courts. The Court concludes that an insurer has such a right to restitution, but that the right is qualified by equitable considerations.

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