Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult an attorney for guidance on your specific situation.
Detailed Answer
When an injured party in New Jersey faces losses that exceed a single insurance policy’s limit covering multiple at-fault parties, there are strategies to recover unpaid expenses. New Jersey’s comparative-fault and contribution frameworks determine how to allocate and enforce liability beyond policy limits.
1. Determine Each Party’s Fault and Insurance Coverage
First, identify all individuals or entities whose negligence contributed to your harm. Obtain and review each defendant’s insurance policy declarations. In some cases, multiple defendants share a common policy limit (for example, employers and employees on the same commercial general liability policy).
2. Exhaust the Shared Policy Limit
Present your demand to the insurer up to the full policy limit. If the insurer pays the maximum amount, you release the insurer and its insured parties from further liability under that policy. However, this settlement does not bar you from pursuing uncovered damages against the defendants personally.
3. Pursue Personal Assets for Excess Damages
After exhausting policy proceeds, you can sue each at-fault party directly for the remaining damages. New Jersey allows plaintiffs to collect beyond insurance if the defendant has sufficient assets.
4. Understand Limited Joint and Several Liability
Under New Jersey’s Tort Reform Act, defendants bearing more than 60% of the fault are jointly and severally liable for non-economic damages (e.g., pain and suffering). Defendants pay economic damages (e.g., medical bills, property loss) only in proportion to their fault percentage. For details, see N.J.S.A. 2A:15-5.3.
5. Seek Contribution from Other Defendants
If you collect more than your fair share from one defendant, that defendant can pursue contribution from co-defendants under the New Jersey Contribution Among Tortfeasors Act (N.J.S.A. 2A:53A-1). This mechanism ensures equitable distribution of liability among responsible parties.
6. Consider Settlement and Alternative Dispute Resolution
Mediation or arbitration can expedite resolution and reduce legal fees. Insurers often prefer ADR to control costs. Make sure any settlement allocates proceeds among all parties and preserves your right to pursue remaining defendants.
Helpful Hints
- Document all economic losses with bills, estimates and receipts.
- Request complete policy information from each insurer early in the case.
- Consult a civil trial attorney to assess personal-asset exposures.
- Negotiate joint release agreements to avoid future claims by other defendants.
- File your lawsuit within New Jersey’s two-year personal injury statute of limitations (N.J.S.A. 2A:14-2).