Personal Injury Laws in New Jersey

Personal Injury Law in New Jersey: Overview

New Jersey follows a modified comparative negligence system with a 50% bar, preventing recovery for plaintiffs whose fault equals or exceeds the combined fault of all defendants. The state has a two-year statute of limitations for most personal injury claims. New Jersey is a no-fault auto insurance state with a unique verbal and monetary threshold system. Drivers choose between a "basic" policy (limited right to sue) and a "standard" policy (full right to sue or verbal threshold). This choice significantly affects the ability to pursue pain and suffering claims after auto accidents. New Jersey does not impose general caps on damages in standard personal injury cases. The state has extensive consumer protection laws and well-developed premises liability and product liability case law.

Key Statutes & Deadlines

No-Fault Auto Insurance and Verbal Threshold

New Jersey's auto insurance system is one of the most complex in the country. Drivers must choose between a "basic" policy and a "standard" policy. Standard policy holders further choose between the "verbal threshold" (also called the "limitation on lawsuit option") and the "no threshold" (full right to sue) option. Under the verbal threshold, you can only sue for pain and suffering if you have suffered one of six categories of serious injuries: death, dismemberment, significant disfigurement or scarring, displaced fracture, loss of a fetus, or a permanent injury. The verbal threshold is the default option and significantly limits the ability to sue for non-economic damages after auto accidents.

Joint and Several Liability

New Jersey applies joint and several liability for economic damages when a defendant is 60% or more at fault. Defendants who are less than 60% at fault are only severally liable for economic damages in proportion to their fault. For non-economic damages, each defendant is only liable for their proportionate share regardless of their percentage of fault. This modified system creates a framework where highly culpable defendants bear greater responsibility for economic losses, while all defendants are proportionately responsible for non-economic damages.

New Jersey Tort Claims Act

Claims against New Jersey government entities require a notice of claim within 90 days of the accrual of the cause of action, one of the shortest notice periods in the country. Failure to provide timely notice will generally bar the claim unless the claimant can show extraordinary circumstances. The Tort Claims Act provides immunity for discretionary activities, plan and design decisions, and other specified functions. Damages against government entities are not specifically capped, but pain and suffering damages require demonstration of permanent loss of a bodily function or permanent disfigurement. Government employees have qualified immunity for actions within the scope of their duties.

New Jersey Court System

New Jersey's Superior Court is the trial court of general jurisdiction, divided into the Law Division (for personal injury cases), Chancery Division, and Family Division. The state has 21 counties, each with a Superior Court venue. Special Civil Part handles claims up to $20,000. Appeals go to the New Jersey Appellate Division of the Superior Court, and further review is available from the New Jersey Supreme Court. Civil juries consist of 6 members in most cases, with unanimous verdicts required. New Jersey has mandatory arbitration for automobile negligence cases and encourages mediation.

Damages & Penalties

New Jersey allows full recovery of economic damages without statutory caps. Non-economic damages are not subject to general statutory caps. Punitive damages are available when the defendant acted with actual malice or wanton and willful disregard and are capped at five times compensatory damages or $350,000, whichever is greater. The New Jersey Punitive Damages Act requires proof by clear and convincing evidence. New Jersey follows the collateral source rule, though the court may reduce damages for collateral source payments in a post-trial hearing. Pre-judgment interest is available from the date of the filing of the complaint, with the rate set by court rule.

Recent Legislative Changes

New Jersey has considered reforms to the verbal threshold and PIP system. Recent court decisions have addressed the scope of the Tort Claims Act notice requirements, the application of comparative fault in product liability cases, and the standards for punitive damages. The legislature has also addressed distracted driving and insurance coverage issues.

Frequently Asked Questions