NINA SEIGELSTEIN VS. SHREWSBURY MOTORS, INC. (L-4072-15, MONMOUTH COUNTY AND STATEWIDE)

New Jersey Superior Court Appellate Division·Decided July 29, 2020·No. A-3801-18T2·Published

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION

DOCKET NO. A-3801-18T2

NINA SEIGELSTEIN, on behalf of herself and all others similarly situated, APPROVED FOR PUBLICATION

Plaintiff-Appellant, July 29, 2020

APPELLATE DIVISION

v.

SHREWSBURY MOTORS, INC., d/b/a SHREWSBURY VOLKSWAGEN and JEFF ANDERSON,

Defendants-Respondents.

Argued February 5, 2020 – Decided July 29, 2020 Before Judges Koblitz, Gooden Brown and Mawla.

On appeal from the Superior Court of New Jersey, Law Division, Monmouth County, Docket No. L-

4072-15.

Andrew R. Wolf argued the cause for appellant (The Wolf Law Firm LLC, and Christopher Joseph Mc Ginn, attorneys; Andrew R. Wolf and Christopher Joseph Mc Ginn, on the briefs).

Steven M. Richman argued the cause for respondents (Clark Hill PLC, attorneys; Steven M. Richman and Boris Brownstein, of counsel and on the brief).

The opinion of the court was delivered by GOODEN BROWN, J.A.D.

Plaintiff Nina Seigelstein appeals from a March 27, 2019 Law Division order, "grant[ing] in part and den[ying] in part," her attorneys' application for fees in connection with a class action lawsuit against a car dealership, Shrewsbury Motors, Inc. d/b/a Shrewsbury Volkswagen, and its principal, Jeff Anderson, collectively defendants. The judge reduced the billable hours as well as the requested hourly rates and applied a lower contingency fee enhancement percentage than requested by plaintiff's attorneys (Class Counsel). On appeal, plaintiff only challenges the hourly rate reduction. Because we agree that the judge mistakenly exercised her discretion, we reverse.

On October 30, 2015, plaintiff filed a class action complaint alleging defendants violated the New Jersey Consumer Fraud Act (CFA), N.J.S.A. 56:8-1 to -20, and the New Jersey Truth-in-Consumer Contract, Warranty and Notice Act (TCCWNA), N.J.S.A. 56:12-14 to -18, in the sale and leasing of motor vehicles "by charging unlawful fees and failing to itemize the documentary fees charged to [p]laintiff and all those similarly situated." See R. 4:32-1; R. 4:32-2. Among other things, the complaint sought "reasonable

A-3801-18T2

attorney's fees and costs pursuant to the CFA at [N.J.S.A.] 56:8-19 and/or TCCWNA at [N.J.S.A.] 56:12-17."

After defendants filed a notice of appeal as of right from the March 16, 2016 order denying arbitration, see R. 2:2-3, the parties engaged in extensive settlement negotiations, including participation in the Appellate Division's Civil Appeals Settlement Program (CASP). Negotiations ultimately resulted in the execution of a comprehensive class action settlement agreement on August 30, 2017, and, following confirmatory discovery, an amended final class action settlement agreement on November 30, 2017.

In pertinent part, the final agreement addressed Class Counsel's "entitlement" to reasonable attorneys' fees and costs as follows:

Subject to the [c]ourt's [f]inal [a]pproval of this [f]inal [s]ettlement [a]greement, Shrewsbury Motors, Inc.

shall pay the reasonable attorneys' fees and costs of Class Counsel to be determined by settlement or fee petition. . . . [T]he [p]arties will attempt to reach an agreement on the amount of attorneys' fees and costs.

If such an agreement is reached, then, subject to [c]ourt approval within ten . . . days of the [e]ffective [d]ate, Shrewsbury Motors, Inc. shall pay the amount awarded, pursuant to [c]ourt approval. If such an agreement is not reached, Shrewsbury Motors, Inc.

agrees to pay the amount of attorneys' fees and costs awarded by the trial court on any fee petition within ten . . . days of the [c]ourt's determination of same.

Defendants shall be given proper notice of such fee applications and afforded the opportunity to file objections to the amount of the reasonable attorneys'

fees and costs sought by Class Counsel. While

A-3801-18T2

[d]efendants may file objections to the amount of reasonable attorneys' fees and costs sought by [C]lass [C]ounsel if an agreement on an amount of attorneys'

fees and costs is not reached, [d]efendants agree and shall not object to Class Counsels' entitlement to their reasonable attorneys' fees and costs.

After the parties failed to reach an agreement on the amount of attorneys'

fees, on June 4, 2018, plaintiff moved for final approval of the class act ion settlement,1 which included a request for approval of attorney's fees and costs in the amount of $161,634.50 and $774.25, respectively, through June 1, 2018. 2 In detailed supporting certifications submitted by the lead attorneys, Andrew R. Wolf and Christopher J. McGinn, Class Counsel asserted they had expended a combined total of 273.7 hours on the litigation at their respective law firms. For the Wolf Law Firm LLC, hourly rates were listed as follows:

1 Previously, on March 9, 2018, the judge had preliminarily approved the proposed class action settlement, certified the class for purposes of settlement, see R. 4:32-2(a) and (e), appointed plaintiff as Class Representative and her attorneys as Class Counsel, see R. 4:32-2(g), directed that notices be mailed to the settlement class members, see R. 4:32-2(b)(2), and scheduled a fairness hearing to consider any objections or exclusions and determine whether to "grant final approval to the settlement as fair, reasonable, and adequate." See R. 4:32-2(e)(1)(C); Chattin v. Cape May Greene, 216 N.J. Super. 618, 627 (App. Div. 1987) ("The basic test for court approval of a settlement of a class action is whether it is fair and reasonable to the members of the class."). Of the 2883 class members notified, no objections or requests for exclusion were received. 2 Plaintiff sought leave to file a supplemental fee application for Class Counsel's time expended after June 1, 2018, including replying to any opposition to the fee application, attending the fairness hearing, and overseeing the implementation of the settlement.

A-3801-18T2

Andrew R. Wolf at $765; Henry P. Wolfe at $625; Bharati S. Patel at $550; Andrew W. Li at $525; Kelly Samuels Thomas at $365; Matthew S. Oorbeek at $360; Mariel Mercado at $250; and a paralegal at $165. For the Law Office of Christopher J. McGinn, Christopher J. McGinn's hourly rate was listed as $500.

Wolf's and McGinn's certifications identified several New Jersey state and federal cases where the court had approved their current and comparable prior hourly rates. Additionally, Wolf, who was admitted to the New Jersey bar in 1995, averred that to date, he had "been certified as [C]lass [C]ounsel in 121 cases, many of which have involved claims brought under the [CFA] and the [TCCWNA]." McGinn, who was admitted to the New Jersey bar in 2002, certified that he "concentrate[d his] practice in the area of consumer protection law," and had "been appointed as [C]lass [C]ounsel in forty-eight class actions."

Further, Wolf submitted the biographies of the other attorneys in his firm who worked on the case, as well as a 2018 certification from Lawrence H. Shapiro, a 2015 certification from John E. Keefe, Jr., and a 2009 certification from Allyn Z. Lite. Shapiro, a partner in Ansell Grimm & Aaron, PC with a practice devoted predominantly to "commercial litigation," confirmed that Class Counsel's hourly rates in this case were "consistent with the rates

A-3801-18T2

Free access — add to your briefcase to read the full text and ask questions with AI

NINA SEIGELSTEIN VS. SHREWSBURY MOTORS, INC. (L-4072-15, MONMOUTH COUNTY AND STATEWIDE), (N.J. Ct. App. 2020).

NINA SEIGELSTEIN VS. SHREWSBURY MOTORS, INC. (L-4072-15, MONMOUTH COUNTY AND STATEWIDE) (NINA SEIGELSTEIN VS. SHREWSBURY MOTORS, INC. (L-4072-15, MONMOUTH COUNTY AND STATEWIDE)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Hensley v. Eckerhart
461 U.S. 424 (Supreme Court, 1983)
Brundage v. Estate of Carambio
951 A.2d 947 (Supreme Court of New Jersey, 2008)
Chattin v. Cape May Greene, Inc.
524 A.2d 841 (New Jersey Superior Court App Division, 1987)
Masone v. Levine
887 A.2d 1191 (New Jersey Superior Court App Division, 2005)
Szczepanski v. Newcomb Medical Center, Inc.
661 A.2d 1232 (Supreme Court of New Jersey, 1995)
Rendine v. Pantzer
661 A.2d 1202 (Supreme Court of New Jersey, 1995)
Flagg v. Essex County Prosecutor
796 A.2d 182 (Supreme Court of New Jersey, 2002)
Stoney v. Maple Shade Tp.
44 A.3d 601 (New Jersey Superior Court App Division, 2012)
Walker v. Giuffre
2 A.3d 1165 (New Jersey Superior Court App Division, 2010)
Andre De Garmeaux v. Dnv Concepts, Inc. T/a
151 A.3d 992 (New Jersey Superior Court App Division, 2016)
Furst v. Einstein Moomjy, Inc.
860 A.2d 435 (Supreme Court of New Jersey, 2004)
Walker v. Giuffre
35 A.3d 1177 (Supreme Court of New Jersey, 2012)
Rode v. Dellarciprete
892 F.2d 1177 (Third Circuit, 1990)