Calculating an award of attorneys' fees pursuant to state statutory fee-shifting provisions begins with determining the lodestar; the lodestar is derived by multiplying the number of hours reasonably expended on the litigation by a reasonable hourly rate
January 31st 2012
Law Lessons from May L. Walker v. Carmelo Guiffre (A-72-10) (066969) & Bobbie Humphries v. Powder Mill Shopping Plaza (A-100-10) (067267), __ N.J. __ (2012); January 25, 2012: The mechanisms for awarding attorneys' fees, including contingency enhancements, adopted in Rendine v. Pantzer, 141 N.J. 292 (1995) remain in full force and effect as the governing principles for awards made pursuant to New Jersey fee-shifting statutes. Statutory fee-shifting provisions address the problem of unequal access to the courts; provide the individuals, whose rights are being protected by the statutes, with the resources to enforce those rights in court; operate to encourage adequate representation which is essential to ensuring that those laws will be enforced; and promote respect for the underlying law. Pursuant to Rendine, calculating an award of attorneys' fees pursuant to state statutory fee-shifting provisions begins with determining the lodestar. The lodestar is derived by multiplying the number of hours reasonably expended on the litigation by a reasonable hourly rate. Rendine, and its companion case Szczepanski v. Newcomb Medical Ctr., 141 N.J. 346 (1995), included specific guidance that informs both aspects of the lodestar equation. In addition, under Rendine, after the lodestar has been established, the trial court may increase the fee to reflect the risk of nonpayment in all cases in which the attorney's compensation entirely or substantially is contingent on a successful outcome. The Court's authorization of contingency enhancements arose from its conclusion that a fee award cannot be "reasonable" unless the lodestar is adjusted to reflect the actual risk that the attorney would not receive payment if the suit did not succeed. Note: There is a print link embedded within this post, please visit this post to print it. NOTE: This Blog/Blawg, NJ Family Issues, is managed by Paul G. Kostro, Esq., an attorney/lawyer/mediator in Linden, Union County, New Jersey. Calculating an award of attorneys' fees pursuant to state statutory fee-shifting provisions begins with determining the lodestar; the lodestar is derived by multiplying the number of hours reasonably expended on the litigation by a reasonable hourly rate originally appeared on NJ Family Issues on January 31, 2012.