A challenge to New Jersey’s bail-reform measures reached a critical phase on Tuesday as a federal judge in Camden heard arguments on an insurance company’s bid for a preliminary injunction against implementation of bail reform in New Jersey.

The Criminal Justice Reform Act, which has come under constitutional challenge from Lexington National Insurance Corp., which has contended its surety business has dwindled under the new law, and Brittan Holland, a Sicklerville man who was placed on home detention and ordered to wear a monitoring device after he was charged with assault. The suit was brought on behalf of a class of people who are unable to get cash bail under the act, which went into effect Jan. 1. Paul Clement, who served as U.S. solicitor general under President George W. Bush, and now is with Kirkland & Ellis in Washington, is on the team representing the plaintiffs.