A recent Law 360 story by Carla Baranauckas, “NJ Panel Backs Atty Fee For AG in Fight With Ammunition Co.”, reports that a Florida ammunition seller fined for illegally selling large-capacity magazines in New Jersey got no relief when a state appellate panel affirmed a lower court's imposition of civil penalties and attorney fees for the state Attorney General's Office.  In a 21-page ruling on 22Mods4All Inc.'s challenge to the monetary awards, the Appellate Division said it found no reason to toss the Chancery Court's ruling that the ammunition company should pay almost $27,000 in attorney fees and $150,000 in civil penalties.

"Trial courts are vested with broad discretion in resolving attorney-fee applications, and we will not disturb either the fee award or 'the decision to deny a plenary hearing unless there is a "clear abuse of discretion,"'" the court said, citing Furst v. Einstein Moomjy Inc., 182 N.J. 1, 21 (2004).  22Mods4All had argued that it was a small-family company unaware of New Jersey's ban on magazines that carry more than 10 rounds, that it had immediately stopped sales of larger magazines that carry up to 30 rounds and that it had made less than $90 in profits from sales in the Garden State.

In analyzing the attorney fees, the court turned to Rendine v. Pantzer, 141 N.J. 292, 334-35 (1995); R. 4:42-9(b), which says, "The starting point in awarding attorneys' fees is the determination of the 'lodestar,' which equals the 'number of hours reasonably expended multiplied by a reasonable hourly rate.'"  The Chancery Court judge rejected 22Mods4All's contention that plaintiffs' efforts were "minimal" and that attorney fees must be limited to "litigation-specific costs."

In a footnote the court enumerated these factors in determining attorney fees: "(1) the time and labor required, the novelty and difficulty of the questions involved, and the skill requisite to perform the legal service properly; (2) the likelihood, if apparent to the client, that the acceptance of the particular employment will preclude other employment by the lawyer; (3) the fee customarily charged in the locality for similar legal services; (4) the amount involved and the results obtained; (5) the time limitations imposed by the client or by the circumstances; (6) the nature and length of the professional relationship with the client; (7) the experience, reputation, and ability of the lawyer or lawyers performing the services; (8) whether the fee is fixed or contingent."