You be the Judge: Lawyer's Fees

If you are concerned about paying lawyers' fees, this may interest you.

In most judicial proceedings, each party pays his own lawyer fees. 

But some years ago, the Rules of Court were changed to provide that a party can make a specific offer of settlement and, under certain circumstances, can recover his attorneys fees if his adversary does not accept the offer.

The Supreme Court of New Jersey recently reviewed the extent of this Rule.

In the case, plaintiffs had made an offer of settlement before trial, but it was not accepted by defendant.  When the trial resulted in judgment for the plaintiffs, they requested an award of attorneys fees.  The trial court denied the application.

Plaintiffs appealed.  The Appellate Division determined that the Court Rule required an award of counsel fees to plaintiffs and remanded the matter to the trial court to set an appropriate amount.

When the amount of fees was determined, defendant unsuccessfully challenged the amount on a second appeal to the Appellate Division. 

At that point, the plaintiffs asked the Appellate Division for an additional award counsel fees to them for both appeals.  The Appellate Division denied additional legal fees.

YOU BE THE JUDGE:  If a party rejects a settlement offer, does he incur liability for his adversary's legal fees on appeal, too?

The Supreme Court applied the Court Rule in plaintiffs' favor.  It held that all of plaintiffs' appellate legal expenses were incurred because defendant had rejected the initial settlement offer.  The Rule was intended as a procedural mechanism to facilitate the settlement of cases.  It was intended to penalize a litigant who unreasonably rejects a settlement offer.   It would work an injustice to the spirit of the Rule if a litigant who rejected a settlement were able to escape the mandatory payment of those costs incurred as a result of his decision.

The decision points out that a courtroom can bring justice and may be the only way to protect your rights. We know courtrooms; we have harnessed the power of the law in courtrooms to bring justice for our clients for decades. Please contact us to discuss how we can help you in a new lawsuit or provide a "second opinion" about your pending lawsuit. There is no obligation for the initial consultation.