On January 22, 2026, the New Jersey Supreme Court held oral arguments on a case involving an MD/DC practice where Allstate insurance sued the practitioners for fraud.
In this case, Allstate Insurance vs. Carteret Comprehensive Medical Care, PC, Allstate has charged that for 14 years, the MD/DC group sent in more than 800 misleading and fraudulent bills to the carrier, receiving over $1.7 million in PIP payments. Rico violations were also asserted by the carrier. The practice disputes these claims and has fervently fought the accusations.
The case was dismissed by the trial judge by motion of the practice remanding the case to mandatory no-fault arbitration, based upon New Jersey law that mandates that No-Fault disputes should be adjudicated in arbitration. Allstate appealed and the Appellate Court reversed the trial court ruling, and the NJ Supreme Court has now taken up the case. The issue at hand is insurance carriers have paid the healthcare providers for years for the services they provide, then attempt to claw back the money paid out, by stating that there was fraudulent intent and they look to get treble(3X) damages plus attorney’s fees back from the providers.
The AICRA law (Automobile Insurance Cost Reduction Act) of 1998 stated that all auto accident case payment disputes had to go through the Arbitration process. The carriers however, for the past decade, have been suing the chiropractors and other healthcare providers, contrary to the wording of the law that states that “any” dispute should go through the arbitration process.
The ANJC, was the only healthcare group in the state, to step forward and file an Amicus brief, and financially supported defending our doctors from getting sued unfairly by carriers. Our briefs were utilized to get the case dismissed at the trial level and be able to move forward to the NJ Supreme Court, where they now currently await the judge’s decision. There were approximately 2 ½ hours of oral arguments in front of the court including attorneys for Allstate, the medical providers and the Department of Banking and Insurance. Jeff Randolph, Esq., ANJC general counsel, argued for the MD/DC practice.
Just another example of why we need a strong association that continues to fight for your practice and your patients.
You can review the briefs and a video of the argument by clicking here.
Steven Clarke, DC
ANJC President