Appellate Division upholds $1.6 million insurance fraud judgment won by Kennedy Vuernick

Appellate Division upholds $1.6 million insurance fraud judgment won by Kennedy Vuernick

The Appellate Division has upheld a judgment of approximately $1.6 million that Kennedy Vuernick obtained against the operator of an acupuncture clinic.

Kennedy Vuernick represented Allstate Insurance Company, which sued under the Insurance Fraud Prevention Act.  The suit alleged that the acupuncture clinic was unlawfully owned by an unlicensed individual, and operated by a licensed acupuncturist who posed as the nominal or “paper” owner.  New Jersey law requires that an acupuncture practice, like this clinic, be owned by a licensed healthcare provider.

After gathering substantial evidence to prove the allegations, Kennedy Vuernick won summary judgment against the acupuncturist, the unlicensed owner, and the clinic.  The acupuncturist appealed, and the appellate court upheld the judgment.

The case is Allstate Indemnity Company, et al. v. Tae Yong Hong, D.C., et al., Docket No. A-5340-17.  The appellate court’s opinion can be viewed here.