By Joseph Gidjunis

CAMDEN — An insurance firm covering Camden County has filed a civil suit against the county arguing it neglected its duties to properly notify and try an accident case which resulted in an "unprecedented" $31.3 million jury award, according to court documents.

The Texas-based State National Insurance Company filed a declaratory judgment Oct. 20, one business day after a New Jersey Superior Court jury awarded Nicholas Anderson, from Atco, $31.3 million. The civil suit asks a judge to release the insurance firm from a possible $10 million excess liability payout.

The insurance firm complains that the county failed to properly notify the insurance company about the potential liability -- prohibiting the insurance company's ability to mount its own defense -- and for failing to produce a solid defense of the lawsuit.

On Dec. 23, 2004, Anderson, now 22, was driving on Raritan Avenue between Ellwood Avenue and 3rd Street, when a car in the opposite direction allegedly traveled into his lane.

Anderson avoided the vehicle by swerving right, but he lost control and slammed into a guardrail that is not crash-worthy, said John Dodig, an attorney with the Philadelphia-based Feldman Shepherd Wohlgelernter Tanner Weinstock & Dodig, representing Anderson.

He was severely injured and awarded about $300,000 for past medical expenses, and $15 million each for future medical expenses and past, present and future suffering. The county intends to appeal this accident decision, said county spokesman Ken Shuttleworth.

If the county loses this insurance action, too, it could place a tax burden of several million dollars on its residents, but county officials are confident the case will not move forward.

"It is not at all unusual for there to be legal challenges related to insurance coverage issues," said Assistant Camden County Counsel Howard L. Goldberg.

"We are confident, however, that this judgment will not adversely impact the county taxpayers," he added.

The county would not say if it intends to countersue the insurance company.

John Beckerman, the associate dean of Rutgers University Law School in Camden, said this declaratory judgment request is somewhat common when insurance companies face huge liabilities.

"In many instances, where there are large losses, if there is plausible ground for an insurer to dispute coverage, it will do so," Beckerman said. "Conceivably, the insurance company and county could settle this lawsuit by having the insurance company pay some lesser amount."

The insurance company defends its position with written communications detailing the county's position and ultimate errors.

Camden County wrote to the insurance company Aug. 11, 2008, that there was low liability exposure and Anderson's defense was not strong.

"[T]his is still [a] very weak case for the plaintiff," Camden County officials wrote, according to court documents. "Frankly, any jury will most likely see this case for what it is -- a young man who was either speeding or simply lost control of the car on a turn and was severely injured."

Camden County has until next week to respond with its side of the story.

The attorney for the insurance firm, Peter Mueller, with Harwood Lloyd LLC in Hackensack, could not be reached for comment regarding the matter.