Issue:  2006-05-18

Illegal Alien Eligible to Collect From N.J.s Insurance Fund

TRENTON, N.J., May 18 – The New Jersey State Supreme Court ruled that an illegal alien can collect from the states Unsatisfied Claim and Judgment Fund because he is a resident.

The trial court and the appeals court both ruled that illegal aliens could not collect from the fund because, by being illegally in the country, they could not establish residency. However, the State Supreme Court ruled otherwise, noting that eligibility for payment had to be determined in a liberal fashion for the victims, and in this case, the fact that the victim, a Mexican, showed intent to be a resident of the state was enough to qualify.

The court also held that an aliens illegal status in this case is not relevant.

The person seeking payment was identified as Victor Manuel Caballero, of Bradley Beach. He was a passenger in a car and incurred $38,300 in medical bills and $1,482 in net lost wages. The car, driven by Ricardo Martinez, was unregistered and uninsured.

The high court held the UCJF law only declares that one be a resident of the state, and Caballero qualified in that sense, even though he was only in the state five months when the accident occurred.

Other Illegals May Qualify As Well

New Jersey has about 360,000 illegal immigrants, according to the Pew Hispanic Center, and the lawyer for Caballero said he had about 20 clients who might now qualify for benefits from the fund. The lawyer, Victor M. Covelli, said This is a victory for a lot of injured people who are being denied benefits because they are not legal residents.

Covelli noted that his client cannot receive payment for medical costs because the car in which he was a passenger was from Pennsylvania. However, the lawyer said the way is now clear for his client to receive the funds maximum $15,000 pain and suffering award.

Law Does Not Address Illegal Aliens

Supreme Court Justice James Zazzali, in writing the unanimous decision, said the UCJF law does not address the status of an illegal alien. He noted illegal or undocumented aliens are disqualified from receiving payments in other New Jersey programs like Medicaid, unemployment compensation, and Work First New Jersey program.

Zazzali wrote, The Legislature is obviously aware of the considerable number of undocumented aliens in our state. He explained that the Legislature could have excluded payment for undocumented aliens, but did not when it called for only a requirement of residency.

Zazzali stated that the court does not consider federal immigration law and policy in making our determination, because if we were to consider those sources, we would assume, or possibly usurp, the very function of the Federal Immigration and Naturalization Service. The argument that an aliens illegal status under federal law per se excludes the alien from establishing UCJF residency is therefore not relevant to our analysis.

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