The Supreme Court of New Jersey issued a ruling Wednesday that defendants can never be awarded counsel fees under the offer of judgment rule in any case in which plaintiffs benefit from a statutory fee-shifting provision, which includes the New Jersey Prevailing Wage Act. However, the decision gives defendants an incentive to make an offer in such cases anyway, so long as it is clear about how much would be for the plaintiff and how much for the plaintiff's legal fees.
The New Jersey High Court's opinion, in Best v. C&M Door Controls, Inc., is clearly an attempt to reconcile the intent of laws that allow fee switching for plaintiffs in workplace rights cases and the Offer of Judgment Rule, which uses fee awards to penalize parties, including plaintiffs who do not accept reasonable settlements.
Employment lawyers in New Jersey will certainly be impacted by the Supreme Court's decision. Employment lawyers representing plaintiffs can be thankful that defendants cannot be awarded fees. However, a New Jersey lawyer representing an employee may have his fees adjusted for failing to accept a reasonable settlement offer by the defendant.
