Martin S. Zirger, Plaintiff-Appellant v. General Accident Insurance Company, Defendant-Respondent

Summary

The Supreme Court of New Jersey reversed the Appellate Division, holding that a UIM insurer that had notice of and the opportunity to intervene in the insured's tort action is barred from enforcing the arbitration clause in the UIM endorsement, thereby waiving its right to compel arbitration of damages already adjudicated. The decision rests on statutory public‑policy considerations, the insurer's participation or constructive participation in the underlying litigation, and the application of collateral estoppel.