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Under New Jersey's Alternative Procedure for Dispute Resolution Act (APDRA), parties waive the right to appeal a lower court's decision confirming, vacating or modifying an arbitration award unless the court finds that "rare circumstances grounded in public policy" exist.
In Old Tappan Chiropractic v. Selective Insurance Co., No. L-723-06, 2007 WL 419798 (N.J. Super. Ct. App. Div. Feb. 9, 2007), Old Tappan and Selective Insurance arbitrated a dispute over payment of chiropractic bills for Joan Frazza. Ms. Frazza was injured in an auto accident that occurred while she driving a minivan owned by her father's business.
Selective refused to pay Frazza's chiropractic bills, arguing that Frazza was not entitled to Personal Injury Protection (PIP) benefits because she was using a commercially insured vehicle for personal purposes at the time of the accident.
The dispute was submitted to arbitration with the National Arbitration Forum, pursuant to Alternative Procedure for Dispute Resolution Act (APDRA), N.J. STAT. ANN. 2A:23A-1. An arbitration panel ruled in Selective's favor.
A judge then reviewed the arbitration award and agreed with the arbitration panel's decision. Old Tappan asked this court to review the judge's decision. However, under the APDRA, parties who arbitrate pursuant to the APDRA waiver their right to appeal unless "rare circumstances grounded in public policy" exist. This Court did not find such rare circumstances in this case and therefore did not review the case.
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