Hackensack taxpayers are currently paying the price for a bitter legal battle that was supposed to be completely covered by insurance
the staff of the Ridgewood blog
Hackensack NJ, The City of Hackensack has officially filed a lawsuit against its own provider, Selective Insurance Company of America, accusing the Branchville-based company of abruptly walking away from more than $744,000 in legal defense costs linked to a notorious, decade-long police scandal.
According to city officials, the insurer’s sudden retreat leaves local residents vulnerable to funding high-priced litigation out of their own pockets.
The Core Dispute: Why Taxpayers Are Being “Billed Twice”
Hackensack’s legal team argues that the city did everything right. They maintained a $1 million policy covering public officials, commercial liability, and police activity, backed by a massive $5 million umbrella policy designed to protect the municipality from catastrophic financial exposure.
However, in 2022, Selective Insurance allegedly refused to reimburse the city for $744,936.82 in defense costs built up between 2018 and 2022.
“Although the city holds policies to cover these costs, Selective decided in 2022 that it would not pay defense costs once the city’s deductible was reached,” said city attorney Steven Menaker. “Taxpayers have been paying twice ever since—for the insurance itself, and for the legal fees the company refuses to reimburse.”
From Car Crash to Civil Rights: The Ken Zisa Backstory
To understand why the legal bills are so staggering, you have to look back to 2010, when former Hackensack Police Chief Ken Zisa was arrested and suspended.
The charges stemmed from a 2008 car accident involving his girlfriend, where Zisa was accused of removing her from the scene before a sobriety test could be administered and instructing responding officers to falsify reports.
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2012: Zisa was convicted of fraud and official misconduct.
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The Appeals: Over the next several years, the conviction fell apart. Multiple charges were tossed by the state Appellate Court, and the remaining official misconduct charge was fully dismissed in 2016.
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2017 Civil Rights Lawsuit: Vindicated by the courts, Zisa filed an explosive civil rights lawsuit against Hackensack, its former city manager, and multiple police officers, alleging a massive conspiracy to deny him a fair trial, destroy evidence, and maliciously prosecute him.
The “Abrupt” Coverage Drop
When Zisa filed his civil rights case, Selective Insurance initially stepped up. In a June 2018 letter, the company agreed to provide a legal defense for the accused city employees. Hackensack retained specialized attorneys based on that financial commitment.
But the city claims the insurer pulled the rug out from under them in 2022.
Selective sent letters directly to the individual defendants—completely bypassing the city—announcing they were rescinding all coverage. The insurer argued that because Zisa’s legal complaints had been amended over time, the current allegations no longer qualified for defense or indemnity coverage under the policy terms.
Hackensack’s new lawsuit directly refutes this defense, pointing out that a word-for-word comparison shows the original and amended complaints are nearly identical.
What Happens Next?
The city’s newly filed lawsuit asks a court to force Selective Insurance to honor its original contract, reimburse every dollar of the past $744,000 invoice, and guarantee coverage for all future costs associated with the Zisa litigation.
“The city is taking action to protect the public from Selective’s decision not to honor its insurance policy,” Menaker stated, emphasizing that the lawsuit seeks to recover every single dollar promised to the municipality.
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“Hackensack retained specialized attorneys ”
LOL
Easy to spend money that isn’t yours.