NEW JERSEY BANKERS ASSOCIATION v. GREWAL

CourtDistrict Court, D. New Jersey
DecidedAugust 31, 2023
Docket3:18-cv-15725
StatusUnknown

This text of NEW JERSEY BANKERS ASSOCIATION v. GREWAL (NEW JERSEY BANKERS ASSOCIATION v. GREWAL) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
NEW JERSEY BANKERS ASSOCIATION v. GREWAL, (D.N.J. 2023).

Opinion

NOT FOR PUBLICATION

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

NEW JERSEY BANKERS ASSOCIATION, Plaintiff, Civil Action No. 18-15725 (ZNQ) (DEA) Vv. OPINION MATTHEW J. PLATKIN, in his official capacity as the Attorney General of the State of New Jersey, Defendant.

QURAISHI, District Judge THIS MATTER comes before the Court upon a Motion for Attorney’s Fees (the “Motion”) filed by Plaintiff New Jersey Bankers Association (“Plaintiff or “NJBA”) pursuant to 42 US.C. § 1988. (ECF No. 124.) Plaintiff filed a memorandum in support of the Motion. (“Moving Br.”, ECF No. 124-1.) Defendant Matthew J. Platkin, in his official capacity as the Attorney General of the State of New Jersey (“Defendant” or the “Attorney General”), opposed (“Opp’n Br.”, ECF No. 130), and Plaintiff replied (“Reply Br.”, ECF No. 133.) The Court has carefully considered the parties’ submissions and decides the matter without oral argument pursuant to Federal Rule of Civil Procedure 78 and Local Civil Rule 78.1. For the reasons set forth below, the Court will GRANT the Motion.

IL BACKGROUND AND PROCEDURAL HISTORY N.JS.A. § 19:34-45 (“§ 19:34-45”) provides that, among other specified corporations, corporations carrying on the business of a bank .. . shall pay or contribute money or thing of value in order to aid or promote the nomination or election of any person, or in order to aid or promote the interests, success or defeat of any political party.” It is a criminal statute enforced by the Attorney General. N.ILS.A. § 19:34-1; see also N.J.S.A. 2C:43-3(b)(1); N.I.S.A. 2C:43- 6(a)(3). Plaintiff alleged in its two-count Complaint that this statute improperly prohibited it, and its member banks, from making independent expenditures and contributions to political parties and campaigns. (See ECF No. 1.) Count 1 alleged that § 19:34-45 encompasses independent expenditures in violation of the First Amendment. (Ud. 51-56.) Count 2 alleged that § 19:34- 45’s complete prohibition on contributions by certain corporations is unconstitutional because the statute is not closely drawn to serve the important state interest in combatting quid quo pro corruption or the appearance thereof. U/d. 57-63.) Defendant filed a Motion for Summary Judgment on August 7, 2020 seeking judgment on both counts. (ECF No. 81.) Plaintiff responded with a Cross-Motion for Summary Judgment also seeking judgment on both Counts. (ECF No. 82.) On June 21, 2021, the District Court granted summary judgment in favor of Plaintiff on Count 1, finding that § 19:34-45 prohibits independent expenditures in violation of the First Amendment. (ECF No. 99 at 18.) The District Court granted summary judgment in favor of Defendant as to Count 2, finding that § 19:34-45’s ban on political contributions by certain corporations does not violate the First Amendment because it passed intermediate scrutiny. (/d. at

47.) Plaintiff appealed the grant of summary judgment as to Count 2 and Defendant cross appealed the grant of summary judgment as to Count 1.' (ECF Nos. 107, 108.) The Third Circuit declined to reach the First Amendment issues related to either Count. As to Count 1, it considered instead whether § 19:34-45 applied to NJBA at all. (ECF No. 116-2 at 11.) It concluded, after supplemental briefing from the parties, that NJBA was not bound by § 19:34-45 because NJBA did not qualify as a “corporation carrying on the business of a bank,” and it reversed the District Court’s decision on summary judgment. (/d. at 11, 19.) Notably, the Third Circuit’s decision included the following language regarding its conclusion as to Count 1: Because we can resolve the case on statutory grounds—namely, by interpreting the statute as inapplicable to trade associations of banks—we decline to reach the First Amendment issues. In doing so, we nonetheless provide complete relief. NJBA seeks to make independent expenditures and contributions; based on our reading of § 19:34-45, it may do so. (Ud. at 16.) As to Count 2, the Third Circuit concluded that NJBA lacked standing to bring a claim on behalf of its third-party member banks. (/d. at 19.) Accordingly, it also reversed the District Court’s decision that granted summary judgment in favor of Defendant on Count 2. The Third Circuit’s mandate instructed the District Court to enter an order dismissing both of Plaintiff's claims without prejudice, and awarded appellate costs to NJBA. (ECF No. 116.) After reviewing competing submissions from the parties, the District Court entered an Order implementing that mandate. (ECF No. 121.) Plaintiff thereafter filed the instant Motion for Attorney’s Fees, seeking costs and fees incurred while litigating this suit in the District Court. (ECF No. 124.)

' On June 29, 2021, shortly after the Court decided the parties’ motions for summary judgment, and just before the parties filed their competing appeals, this matter was reassigned to the undersigned.

I. JURISDICTION The Court has original jurisdiction over this matter under 28 U.S.C. §§ 1331 and 1343. I. LEGAL STANDARD Under 42 U.S.C. § 1988(b), in proceedings involving the alleged violation of federal constitutional or civil rights, “the court, in its discretion, may allow the prevailing party, other than the United States, a reasonable attorney’s fee as part of the costs.” Hensley v. Eckerhart, 461 U.S. 424, 426 (1986); Raab v. City of Ocean City, N.J., 833 F.3d 286, 292 (3d Cir. 2016). Section 1988 applies to First Amendment claims. Glass v. Snellbaker, Civ. No. 05-1971, 2008 WL 4416450, at *2 (D.N.J. Sept. 23, 2008). “The touchstone of the prevailing party inquiry must be the material alteration of the legal relationship of the parties.” Texas State Teachers Ass’n v. Garland Indep. Sch. Dist., 489 U.S. 782, 792-93 (1989); Unite Here, Loc. 54 v. City of Atl. City, Civ. No. 11-6273, 2012 WL 1455249, at *3 (D.N.J. Apr. 26, 2012). This change must be “judicially sanctioned,” insofar as the alteration in the parties’ legal relationship must be the product of judicial action rather than voluntary. See Buckhannon Bd. & Care Home v. W. Va. Dep’t of Health & Human Res., 532 U.S. 598, 605 (2001); Singer Mgmt. Consultants, Inc. v. Milgram, 650 F.3d 223, 228 (3d Cir. 2011). In general, a prevailing plaintiff under § 1988 should ordinarily be awarded attorney’s fees, “unless special circumstances would render such an award unjust.” Hensley, 461 U.S. at 429 (citations omitted). “[A] reasonable fee is one which is adequate to attract competent counsel, but which do[es] not produce windfalls to attorneys.” Scanno v. F.H. Cann & Assocs., 794 F. App’x 220, 222 n.7 (3d Cir. 2019) (citing Pub. Interest Research Grp. of N.J., Inc, v. Widnall, 51 F.3d 1179, 1185 (3d Cir. 1995)). “The most useful starting point for determining the amount of a reasonable fee . . . is the number of hours reasonably expended on the litigation multiplied by a reasonable hourly rate.” Hensley, 461 U.S. at 434. The resulting product of this calculation is

called the “lodestar.” City of Burlington v. Dague, 505 U.S.

Related

Montana v. United States
440 U.S. 147 (Supreme Court, 1979)
Hensley v. Eckerhart
461 U.S. 424 (Supreme Court, 1983)
United States v. Mendoza
464 U.S. 154 (Supreme Court, 1984)
Hewitt v. Helms
482 U.S. 755 (Supreme Court, 1987)
City of Burlington v. Dague
505 U.S. 557 (Supreme Court, 1992)
Singer Management Consultants, Inc. v. Milgram
650 F.3d 223 (Third Circuit, 2011)
Ernest D'Orazio, III v. Washington Township
501 F. App'x 185 (Third Circuit, 2012)
Jama v. Esmor Correctional Services Inc.
549 F. Supp. 2d 602 (D. New Jersey, 2008)
Apple Corps Ltd. v. International Collectors Society
25 F. Supp. 2d 480 (D. New Jersey, 1998)
Doe v. Ward
282 F. Supp. 2d 323 (W.D. Pennsylvania, 2003)
Robert Dee, Jr. v. Borough of Dunmore
548 F. App'x 58 (Third Circuit, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
NEW JERSEY BANKERS ASSOCIATION v. GREWAL, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-jersey-bankers-association-v-grewal-njd-2023.