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September 22, 2026
Fraudsters May Not Enjoin Suit Alleging Fraudulent PIP Claims

Defendants May Not Enjoin a Suit Alleging They Defrauded the Plaintiffs

Plaintiffs, automobile insurers, sued medical professionals and healthcare entities, alleging a scheme to submit fraudulent personal injury protection (PIP) bills and supporting documentation for services that were not performed or were medically unnecessary. The complaint asserted common-law fraud, violations of the New Jersey Insurance Fraud Prevention Act (IFPA), aiding and abetting fraud, unjust enrichment, and declaratory relief.

While the action was pending, Plaintiffs moved to stay and enjoin related PIP arbitrations. A magistrate judge recommended denial. in State Farm Guaranty Insurance Company v. Tri-County Chiropractic And Rehabilitation Center P.C., Civil Action No. 22-4852, United States District Court, D. New Jersey (September 15, 2026)

After the New Jersey Supreme Court decided Allstate New Jersey Insurance Company v. Carteret Comprehensive Medical Care, P.C., the federal court reopened the case and considered the parties’ supplemental positions on that decision.

LAW

A motion to stay or enjoin arbitration is evaluated under the preliminary-injunction framework. The movant must show:

likelihood of success on the merits;
irreparable harm absent relief;
no substantial harm to other parties;
consistency with the public interest;
 Likelihood of success and irreparable harm are gateway factors;
failure to establish either permits the court to deny relief without reaching the remaining factors.

Because halting pending arbitrations requires affirmative action, the requested relief is mandatory and demands a heightened showing of irreparable harm. Monetary injury ordinarily is not irreparable when damages can provide adequate compensation.

DISCUSSION

Plaintiffs argued that the magistrate judge should have applied New Jersey authority such as Allstate Insurance Co. v. Lopez, mischaracterized the requested injunction as mandatory, and wrongly found no irreparable harm. They maintained that proceeding through numerous PIP arbitrations would fragment the alleged fraud scheme, restrict their ability to present comprehensive defenses or counterclaims, and expose them to allegedly fraudulent awards that could not practically be recovered.

ANALYSIS

The court held that the magistrate judge applied the correct federal preliminary-injunction standard and correctly treated an order halting ongoing arbitrations as mandatory relief. Plaintiffs did show a likelihood of success because an earlier ruling found a prima facie IFPA claim. They nevertheless failed to make the required clear showing of immediate, irreparable injury. The asserted harms—piecemeal proceedings, limited presentation of a broader fraud theory, defense costs, and payment of arbitration awards—were economic and potentially remediable through money damages. Plaintiffs cited no controlling authority showing that recovery would be legally or practically unavailable. Analogous federal precedent likewise held that insurers could contest individual treatments in arbitration and later recoup economic losses. Because irreparable harm was not shown, the court did not need to balance harms or assess the public interest.

Carteret did not alter that result. It held that IFPA claims are not subject to mandatory PIP arbitration, but it did not make all PIP-related disputes nonarbitrable, preclude voluntary arbitration agreements, address whether already-pending arbitrations should be stayed, or establish that monetary damages would be inadequate.

CONCLUSION

The court adopted the report and recommendation in full and denied Plaintiffs’ motion to stay and enjoin all arbitration proceedings. The dispositive point was not Plaintiffs’ likelihood of success, but their failure to prove irreparable harm.

First, Judge Waldor (the Magistrate) applied the correct standard when evaluating Plaintiffs' Motion. As discussed, Courts in this District and Circuit apply the injunctive relief standard when evaluating motions to stay and enjoin arbitration proceedings. A mandatory injunction alters the status quo by commanding a positive act. This USDC has concluded that a plaintiff's request to enjoin arbitration proceedings seeks to order an affirmative act rather than a stay to maintain the status quo and is thus a request for a mandatory injunction.  Where the relief ordered by the preliminary injunction is mandatory the party seeking the injunction must meet a higher standard of showing irreparable harm in the absence of an injunction

Judge Waldor appropriately concluded that Plaintiffs adequately established a likelihood of success on the merits of their claims. As Judge Salas noted in her Opinion resolving Defendants' first motion to dismiss, Plaintiffs established a prima facie case of an IFPA violation.

Judge Waldor appropriately concluded that Plaintiffs have not established irreparable harm. A movant has the burden of establishing a clear showing of immediate irreparable injury. The availability of adequate monetary damages belies a claim of irreparable injury.

Importantly, this Court recently denied an analogous motion to stay and/or enjoin arbitration proceedings on the basis that the plaintiffs failed to establish irreparable harm. The Court rejected the plaintiffs' arguments, reasoning that they could recoup any potential additional economic injury they are exposed to in the parallel arbitrations, and that while they may not be able to present evidence of an alleged fraudulent scheme involving multiple patients, they could make the case that the medical treatment given to specific individual patients was unwarranted or improper.

ORDERED that Plaintiffs' Motion to Stay and Enjoin all Arbitration Proceedings is DENIED.

ZALMA OPINION

Failure of a movant to make a clear showing of immediate irreparable injury defeats the attempt to enjoin the suit by the insurers. Insurance fraud is both a tort and a crime in New Jersey. Insurers are not required to arbitrate dozens if not hundreds of fraudulent arbitrations when, if the insurers were unable to prove the fraud, the defendants could be made whole with damages and was, therefore, not facing irreparable injury by litigating the case with the insurer.

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September 18, 2026
Expert May Only Testify to What Experience Supports

Insurance Expert May Not Testify to Speculative and Contains Unsupported Conclusions.

Posted on September 18, 2026 by Barry Zalma

See the full video at and at https://rumble.com/v7fmifw-expert-may-only-testify-to-what-experience-supports.html

In Michele A. Over, and The Estate Of Paul R. Over v. State Farm Mutual Automobile Insurance Company, and State Farm Fire And Casualty Company, Civil Action No. 23-cv-02243-PAB-STV, United States District Court, D. Colorado (September 14, 2026) Michele and Paul Over sued State Farm Fire and State Farm Auto over hail-damage and stolen-vehicle claims.

The operative dispute concerned State Farm Auto’s motion to exclude or limit opinions from plaintiffs’ insurance-industry expert, Aaron Castillo. Castillo.

Law

The proponent of expert testimony must establish by a preponderance of the evidence that an expert is qualified and that the opinions are helpful, sufficiently grounded, and reliably derived and applied. Experience-based opinions must explain how the...

00:03:10
September 17, 2026
Convicted on 29 Tax-Refund-Fraud Counts

150 Months in Prison for Tax Fraud
Post 4846

Posted on September 17, 2026 by Barry Zalma

See the full video at https://lnkd.in/g8rh3JBX and https://lnkd.in/gmkdy-9C, In United States Of America v. Thomas Addaquay, Nos. 25-10609, 25-10611, United States Court of Appeals, Eleventh Circuit (September 9, 2026) the Eleventh Circuit affirmed all challenged convictions, the 150-month aggregate sentence, and the challenged $4,123,474.55 restitution award.

FACTS

In United States Of America v. Thomas Addaquay, United States Of America v. Thomas Addaquay, Nos. 25-10609, 25-10611, United States Court of Appeals, Eleventh Circuit (September 9, 2026) the Eleventh Circuit affirmed all challenged convictions, the 150-month aggregate sentence, and the challenged $4,123,474.55 restitution award.
FACTS

Thomas Addaquay controlled United Consolidated Accounting and Business Services (UC), nominally a check-cashing business.

The government proved a three-stage tax-refund scheme that converted the resulting refund checks into usable funds through ...

00:05:23
September 14, 2026
Court Enforces Fifth Amendment & Refuses to Compel Answers

Major Fraud Perpetrator Asserts Fifth Amendment Privilege to Avoid Prosecution

Post 5489

Posted on September 14, 2026 by Barry Zalma

Fraudster Refuses to Answer Questions About His Alleged Fraud

See the full video at https://lnkd.in/gvicAMDr and at https://lnkd.in/gvicAMDr

In Great American Insurance Co. v. Gemstone Property Management, LLC, et al., No. 23-cv-9100 (LJL), United States District Court, S.D. New York (September 8, 2026) Great American Insurance Company alleged that it was defrauded through a scheme in which Subin Associates, LLP recruited individuals to stage construction-site injuries, arranged unnecessary medical treatment and litigation funding, and pursued fraudulent personal-injury claims.

Luis Manuel Garcia Salcedo, resulted in a $6 million settlement. Non-party Jose Hernandez allegedly worked as an assistant manager at Subin, operated Hernandez Associates, and owned litigation-funding companies that shared office space with Subin and provided services to its clients.

After Great American ...

00:05:14
14 hours ago
District Court has Wide Discretion in Sentencing

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Post 4863

Posted on October 14, 2026 by Barry Zalma

In United States Of America v. Anthony Curtis Brewer, No. 26-10745, United States Court of Appeals, Eleventh Circuit (October 8, 2026) Anthony Curtis Brewer became the fiduciary for an incapacitated recipient of Department of Veterans Affairs survivor benefits and agreed to use her funds solely for her care and support without commingling them with his own.

The VA determined that he misused $67,232.33 and removed him as fiduciary in 2022. Brewer pleaded guilty to theft of more than $1,000 in government property under 18 U.S.C. § 641. At sentencing, the district court attributed $53,567 in loss to him, producing an advisory Guidelines range of 15 to 21 months.

Citing the victim’s vulnerability, Brewer’s attempts to avoid responsibility, and his other fraudulent conduct — including state convictions for arson and insurance fraud — the court ...

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October 13, 2026

Title Insurance Only Insures Real Property

Posted on October 13, 2026 by Barry Zalma

When a Seller Advised it Could Not Obtain Title to the Home Fraud Can’t be Proved

A Manufactured Home is Personal Property Until it Becomes Real Property

Post 4862

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In 2020, after a HELOC application was denied, the Johnsons learned that the home had been wrecked and decertified in 2004 and that its 2006 conversion to real ...

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October 09, 2026
Denial Of Mental Health Diversion And Probation Condition Were Affirmed

Denial Of Mental Health Diversion And Probation Condition Were Affirmed

Posted on October 9, 2026 by Barry Zalma

Post 4860

In The People v. Nicholas Daniel Stiles, A173483, A173646, California Court of Appeals, First District, Second Division (September 29, 2026) Nicholas Daniel Stiles pleaded no contest to one count of insurance fraud arising from his purchase of automobile insurance after a June 2021 collision, and to grand theft arising from an April 2024 incident at a 7-Eleven.

In both cases, the trial court suspended imposition of sentence and placed him on two years’ probation. Before the pleas, Stiles sought mental health diversion in both matters and filed a written motion seeking substitute appointed counsel. The diversion applications were denied, and the court never held a hearing on the motion.

LAW

Penal Code section 1001.36 permits pretrial mental health diversion when a defendant is eligible and suitable and the proposed treatment will meet the defendant’s specialized needs; denial is reviewed for ...

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