January 21, 2010
Important Public Interest Fee Decision
The New Jersey Supreme Court upheld a trial court decision finding that parties to a discrimination case did not reach a settlement through a mediator. The court lifted a bar "placed on public interest attorneys and defendants from simultaneously negotiating merits and attorneys fees in Consumer Fraud Act cases." Such negotiations are now allowed. The defendants in such matters may not insist upon fee waivers or dictate to plaintiffs and their counsel concerning the fee division between lawyer and client. The court concludes that a defendant "has no legitimate interest in how the plaintiff and attorney divvy up the settlement." The court adopted the approach suggested by Justice Brennan in his dissent in Evans v. Jeff D.
Justice Albin authored the opinion for a unanimous court. (Mike Frisch)
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