Coleman v. Fiore Bros

In Coleman v. Fiore Bros., 113 N.J. 594, 552 A.2d 141 (1989), the Court established prospectively one set of rules for cases involving private counsel and another set of rules for public interest counsel. In the latter cases, defense counsel may not insist on a waiver or compromise of statutory fees as a condition of settlement. Id. at 611, 552 A.2d 141. In addition, public interest counsel have been directed to make defendants and defense counsel aware during negotiations that a counsel fee will be sought. Ibid. As to the specific case before it, the Court examined the course of the negotiations and the settlement documents and concluded that the failure to reserve the issue in the settlement agreement "would run counter to the fair expectations of counsel in the conduct of this case to have surmised that the public policy of New Jersey forbade such a settlement and dismissal of the action for statutory fees." Id. at 610, 552 A.2d 141.