STATE OF NEW JERSEY
222nd LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblywoman ELLEN J. PARK
District 37 (Bergen)
SYNOPSIS
Specifies nonprevailing party in proceeding or judgment deemed frivolous by judge may include municipality or municipal corporation.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning frivolous litigation and municipalities and amending P.L.1988, c.46.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1988, c.46 (C.2A:15-59.1) is amended to read as follows:
1. a. (1) A party who prevails in a civil action, either as plaintiff or defendant, against any other party, including a municipality or municipal corporation, may be awarded all reasonable litigation costs and reasonable attorney fees, if the judge finds at any time during the proceedings or upon judgment that a complaint, counterclaim, cross-claim, or defense of the nonprevailing [person] party was frivolous.
(2) When a public entity is required or authorized by law to provide for the defense of a present or former employee, the public entity may be awarded all reasonable litigation costs and reasonable attorney fees if the individual for whom the defense was provided is the prevailing party in a civil action, and if there is a judicial determination at any time during the proceedings or upon judgment that a complaint, counterclaim, cross-claim, or defense of the nonprevailing party was frivolous.
b. In order to find that a complaint, counterclaim, cross-claim, or defense of the nonprevailing party was frivolous, the judge shall find on the basis of the pleadings, discovery, or the evidence presented that either:
(1) The complaint, counterclaim, cross-claim, or defense was commenced, used, or continued in bad faith, solely for the purpose of harassment, delay, or malicious injury; or
(2) The nonprevailing party knew, or should have known, that the complaint, counterclaim, cross-claim, or defense was without any reasonable basis in law or equity and could not be supported by a good faith argument for an extension, modification, or reversal of existing law.
c. A party or public entity seeking an award under this section shall make application to the court [which] that heard the matter. The application shall be supported by an affidavit stating in detail:
(1) The nature of the services rendered, the responsibility assumed, the results obtained, the amount of time spent by the attorney, any particular novelty or difficulty, the time spent and services rendered by secretaries and staff, other factors pertinent in the evaluation of the services rendered, the amount of the allowance applied for, an itemization of the disbursements for which reimbursement is sought, and any other factors relevant in evaluating fees and costs; and
(2) How much has been paid to the attorney and what provision, if any, has been made for the payment of these fees in the future.
(cf: P.L.1995, c.13, s.1)
2. This act shall take effect immediately.
STATEMENT
This bill amends existing law to specify that, if a judge finds at any time during a proceeding or upon judgement that a complaint, counterclaim, cross-claim, or defense by a nonprevailing party was frivolous, the nonprevailing party in that proceeding or judgment may include a municipality or municipal corporation. The bill also clarifies that “nonprevailing person” means “nonprevailing party.”
In Borough of Englewood Cliffs v. Trautner, 260 N.J. 410, (2025) the New Jersey Supreme Court addressed whether the term “nonprevailing person” in litigation deemed to be frivolous by a judge may include the Borough of Englewood Cliffs. Following an analysis of the statutory language and legislative history, the Court held that municipalities and municipal corporations that engage in frivolous litigation may be considered “nonprevailing persons” and are to be subject to sanctions.