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NJ Rejects Perdue, Reaffirms Fee Analysis in Rendine

January 31, 2012 | Posted in : Fee Issues on Appeal, Fee Jurisprudence, Fee Shifting, Lodestar

A New Jersey Law Journal story, “Court Upholds Rendine Fee Shifting, Declining to Follow U.S. High Court” reports that the New Jersey Supreme Court reaffirmed its nearly two decade old commitment to a doctrine that permits trial judges to enhance counsel fees in cases that might never be filed if not for the ability to shift fees.  In a consolidated ruling in two cases, the unanimous Court overturned two appellate rulings that followed the U.S. Supreme Court’s holding, in Perdue v. Kenny A., that trial judges may award fee enhancements only in rare and extraordinary circumstances.

Justice Helen Hoens said the justices saw no reason to abandon the fee-shifting principles it established in Rendine v. Pantzer.  In a unanimous ruling (pdf), the court held the mechanism for awarding attorneys’ fees, including contingency enhancements, adopted in Rendine remain in full force and effect as the governing principles for fee awards made pursuant to New Jersey fee-shifting statutes.  The court rejected the Perdue analysis, saying that Perdue breaks no new ground; rather it reiterates the framework that applies to fee awards in federal courts arising from federal statutes.