AUGUSTINE W. BADIALI VS. NEW JERSEY MANUFACTURERS
INSURANCE GROUP
A-2795-11T3
In a prior appeal, the court considered whether defendant
New Jersey Manufacturers Insurance Group (NJM), an uninsured
motorist (UM) insurer -- barred by its policy from rejecting an
arbitration award under $15,000 -- was entitled to reject a
$29,148.62 award when only liable to pay half. In adhering to
D'Antonio v. State Farm Mut. Auto. Ins. Co., 262 N.J. Super. 247
(App. Div. 1993), which considered the same situation in an
underinsured motorist (UIM) setting, the court concluded that
the insurer was bound to the award and, therefore, affirmed a
judgment that precluded NJM's demand for a trial de novo.
Badiali v. N.J. Manufacturers Ins. Grp., No. A-4870-09 (App.
Div. Feb. 28, 2011). In this subsequent action, plaintiff
sought damages from NJM, arguing that NJM litigated in bad faith
in advocating that its policy did not preclude a rejection of
the arbitration award.
The court affirmed the summary judgment entered in favor of
NJM, holding that NJM's position was fairly debatable because it
found support in an earlier unpublished decision of this court.
