Council Enterprises, Inc. v. City of Atlantic City

491 A.2d 789, 200 N.J. Super. 431
CourtNew Jersey Superior Court Appellate Division
DecidedNovember 13, 1984
StatusPublished
Cited by13 cases

This text of 491 A.2d 789 (Council Enterprises, Inc. v. City of Atlantic City) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Council Enterprises, Inc. v. City of Atlantic City, 491 A.2d 789, 200 N.J. Super. 431 (N.J. Ct. App. 1984).

Opinion

200 N.J. Super. 431 (1984)
491 A.2d 789

COUNCIL ENTERPRISES, INC., A NEW JERSEY CORPORATION, PLAINTIFF,
v.
THE CITY OF ATLANTIC CITY, A POLITICAL SUBDIVISION OF THE STATE OF NEW JERSEY, AND ADELAIDE DEANE, DEFENDANTS.

Superior Court of New Jersey, Law Division Atlantic County.

Decided November 13, 1984.

*437 Robert E. Levy for plaintiff (Levy & Robertson, attorneys).

Matthew H. Powals, for defendants.

OPINION

GRUCCIO, A.J.S.C.

The controversy in the above entitled matter comes before this court as a result of a motion by plaintiff Council Enterprises, Inc. for an order awarding counsel fees to plaintiff pursuant to the Civil Rights Attorney's Fee Awards Act of 1976, 42 U.S.C. § 1988 and § 706(k) of Title VII of the Civil Rights Act of 1964, 42 U.S.C. 2000e-5(k).

42 U.S.C. § 1988 provides in pertinent part:

If any action or proceeding, to enforce a provision of sections 1981, 1982, 1983, 1985 and 1986 of this title, Title IX of Public Law 92-318, ... The court, in its *438 discretion, may allow the prevailing party, other than the United States, a reasonable attorney's fee as part of the costs.

42 U.S.C. § 2000e-5(k) reads:

In any action or proceeding under this subchapter the court, in its discretion, may allow the prevailing party, other than the (EEOC) or the United States, a reasonable attorney's fee as part of the costs, and the (EEOC) and the United States shall be liable for costs the same as a private person.

The original complaint in this action was filed on June 20, 1984. The counts alleged the invalidity and unconstitutionality of Ordinance No. 10 of the City of Atlantic City.

Plaintiff leased property located at 1000 Atlantic Avenue, Atlantic City. He renovated the building and planned to open an adult book store on the premises. Ordinance No. 10 of the City of Atlantic City was adopted on February 28, 1984. The ordinance, by its terms prohibited the establishment of an adult book store at the location where plaintiff had planned to open such a store. The ordinance was alleged to violate the First, Fifth and Fourteenth Amendments to the United States Constitution, and Article I, § 6 of the New Jersey Constitution. The counts alleged substantive violations and included a request for a declaratory judgment. The cause of action was also brought pursuant to 42 U.S.C. § 1983, et seq. commonly known as the Federal Civil Rights Act and included a request for attorney's fees pursuant to the Civil Rights Attorney's Fees Awards Act.

From the period of August 1983 until February 28, 1984 plaintiff or its attorney had numerous discussions with the city as to the approval necessary for the opening of an adult book store at the corner of Atlantic and Virginia Avenues. After passage of Ordinance No. 10 the city, acting on the assumption of the ordinance's constitutionality, informed plaintiff that it could not open its adult book store at the planned location. While there was general communication between the parties as to the validity of Ordinance No. 10, no amicable resolution was reached. By order of this court on August 8, 1984, Ordinance No. 10 of the City of Atlantic City was declared to be invalid in *439 that it constituted a violation of the First and Fourteenth Amendments to the United States Constitution.

The theory underpinning recovery by prevailing civil rights plaintiffs is that they act as private attorneys general in enforcing public law norms and when addressing discrimination "vindicate a policy that Congress considered of the highest priority." Newman v. Piggy Park Enterprises, 390 U.S. 400, 402, 88 S.Ct. 964, 966, 19 L.Ed.2d 1263 (1968). In determining the amount of the fee to be awarded under the act, a court should begin with the fact that the basic purpose of the act is to promote private enforcement of the civil rights statutes by enabling litigants to obtain competent counsel to pursue their claims. Congress recognized that civil rights litigation is a specialized and complex field. For this reason the amount of the fees awarded in a civil rights case should be governed by "the same standards which prevail in other types of equally complex Federal litigation, such as antitrust cases." Sargeant v. Sharp, 579 F.2d 645, 648 (1st Cir.1978).

Section 1988 states that the court may award fees "in its discretion." However, this discretionary power does not mean that the court is permitted to deny fees for any reason, or that its reasons, if erroneous, are not reviewable. Indeed, under the statute, fees are to be awarded in the ordinary case to a prevailing plaintiff unless there is a special reason not to award fees.

The language of the 1976 act was not new. It was the precise language which had been used to authorize attorney fee awards in a number of specific civil rights actions since 1964. Congress' specific intent in selecting this particular language was to incorporate the standards which had been developing in the courts under these statutory authorizations. For example, in Newman, supra, the Court recognized the important purpose of vindicating congressional policy by bringing civil rights suits and declared that a successful plaintiff "should ordinarily recover an attorney's fee unless special circumstances would *440 render such an award unjust." Id. 390 U.S. at 402, 88 S.Ct. at 966.

The threshold question in awarding attorney's fees under § 1988 is whether or not plaintiff may be considered the "prevailing" party. A plaintiff is considered a "prevailing" party if plaintiff succeeds on any significant issue in litigation which achieves some of the benefit the party sought in bringing the suit. Marybeth G. v. Chicago, 723 F.2d 1263, 1278 (7th Cir.1983). To determine whether plaintiff has succeeded on significant issues, a two tier analysis is applied. See Illinois Welfare Rights Organization v. Miller, 723 F.2d 564, 566 (7th Cir.1983). The first part of the test is that plaintiff's lawsuit must be causally linked to the achievement of the relief obtained and second, plaintiff must not have acted wholly gratuitously. That is, plaintiff's claim cannot have been either frivolous, unreasonable or groundless. It is clear that plaintiff is a prevailing party for purposes of § 1988 of the Civil Rights Act. Since the invalidity of Ordinance No. 10 vindicated plaintiff's constitutional rights, the action clearly was not frivolous or unreasonable.

Having determined plaintiff's status as a prevailing party, the second step in the analysis is to determine what is a reasonable fee for the services performed by the attorney. The critical question under this part of the analysis is "determining the extent of plaintiff's success in relationship to the relief sought." Hensley v. Eckerhart, 461 U.S. 424, 103 S.Ct. 1933, 1943, 76 L.Ed.2d 40 (1983). This question can be broken into several stages. The first step is to assess the result obtained and to determine whether any of the relief won by plaintiff is due to events which are independent of the plaintiff's lawsuit. The declaration of invalidity of Ordinance No. 10 was entirely due to plaintiff's effort. No independent factors aided in bringing about the relief sought by Council Enterprises, Inc.

The second step in determining the reasonableness of the fee is then to compare the results obtained with the relief *441

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491 A.2d 789, 200 N.J. Super. 431, Counsel Stack Legal Research, https://law.counselstack.com/opinion/council-enterprises-inc-v-city-of-atlantic-city-njsuperctappdiv-1984.