SENATE, No. 864

 

STATE OF NEW JERSEY

 

INTRODUCED FEBRUARY 26, 1996

 

 

By Senator CARDINALE

 

 

An Act concerning the appeal of certain decisions, determinations or orders of the Department of Insurance.

 

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

    1. Upon the finding of willful misconduct on the part of a respondent, a petitioner who appeals a decision, determination or order of the Department of Insurance or the commissioner thereof, which affects the legal rights, duties, obligations, privileges, benefits or other legal relations of that petitioner, and prevails in that appeal in an administrative proceeding, shall be awarded attorneys' fees, expert witness fees, investigatory costs and other costs related to the administrative proceeding. Notwithstanding the provisions of N.J.S.59:1-1 et seq. or any other law to the contrary, the Department of Insurance shall pay for 90 percent of these fees and costs and the employee of the Department of Insurance who rendered the decision or determination or issued the order which affects the legal rights, duties, obligations, privileges, benefits or other legal relations of the petitioner shall pay for 10 percent of these fees and costs, except that the employee's 10% share of these fees and costs shall be waived if the employee resigns from employment with the State of New Jersey and is not employed by the State of New Jersey for a period of five years thereafter.

 

    2. Upon the finding of willful misconduct on the part of the defendant, a plaintiff who appeals a decision, determination or order of the Department of Insurance or the commissioner thereof, which affects the legal rights, duties, obligations, privileges, benefits or other legal relations of the plaintiff, and prevails in that appeal in a court of competent jurisdiction, shall be awarded triple damages, attorneys' fees, expert witness fees, investigatory costs and court costs. Notwithstanding the provisions of N.J.S.59:1-1 et seq. or any other law to the contrary, the Department of Insurance shall pay for 90 percent of these damages, fees and costs and the employee of the Department of Insurance who rendered the decision or determination or issued the order which affects the legal rights, duties, obligations, privileges, benefits or other legal relations of the plaintiff shall pay for 10 percent of these damages, fees and costs, except that the employee's 10% share of these damages, fees and costs shall be waived if the employee resigns from employment with the State of New Jersey and is not employed by the State of New Jersey for a period of five years thereafter.

 

    3. This act shall take effect immediately.

 

 

STATEMENT

 

    This bill allows persons, who are wronged by decisions, determinations or orders of the Department of Insurance involving willful misconduct on the part of the department, to collect attorneys' fees, expert witness fees, investigatory costs and other costs if they prevail in an administrative proceeding appealing the decision, determination or order. The bill also allows parties to collect triple damages, attorneys' fees, expert witness fees, investigatory costs and court costs if they prevail in a court suit appealing the decision, determination or order involving willful misconduct on the part of the department. The Department of Insurance must pay 90% of the awarded amounts and the employee who rendered the decision, determination or order must pay the remaining 10%, except that the employee's 10% share of these awarded amounts shall be waived if the employee resigns from employment with the State of New Jersey, and is not employed by the State of New Jersey for a period of five years thereafter.

 

 

 

Requires reimbursement for certain costs if petitioners or plaintiffs prevail in certain Department of Insurance decisions.