Bill Text: NJ A811 | 2014-2015 | Regular Session | Introduced
Bill Title: Authorizes award of attorney's fees and expenses in landlord-tenant actions under certain circumstances.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Failed) 2014-02-20 - Withdrawn from Consideration [A811 Detail]
Download: New_Jersey-2014-A811-Introduced.html
STATE OF NEW JERSEY
216th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2014 SESSION
Sponsored by:
Assemblyman CRAIG J. COUGHLIN
District 19 (Middlesex)
Assemblyman TIMOTHY J. EUSTACE
District 38 (Bergen and Passaic)
Assemblywoman ANNETTE QUIJANO
District 20 (Union)
Assemblywoman VALERIE VAINIERI HUTTLE
District 37 (Bergen)
Assemblyman THOMAS P. GIBLIN
District 34 (Essex and Passaic)
Co-Sponsored by:
Assemblymen Schaer, Johnson, Assemblywoman Sumter and Assemblyman Wisniewski
SYNOPSIS
Authorizes award of attorney's fees and expenses in landlord-tenant actions under certain circumstances.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning attorney's fees and expenses in landlord-tenant disputes and supplementing Title 2A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. If a residential lease agreement provides that the landlord is or may be entitled to recover either attorney's fees or expenses, or both, incurred as a result of the failure of the tenant to perform any covenant or agreement in the lease, or if the lease provides that such costs may be recovered as additional rent, the court shall read an additional parallel implied covenant into the lease. This implied covenant shall require the landlord to pay the tenant either the reasonable attorney's fees or the reasonable expenses, or both, incurred by that tenant as the result of the tenant's successful defense of any action or summary proceeding commenced by the landlord against the tenant, arising out of an alleged failure of the tenant to perform any covenant or agreement in the lease, or as the result of any successful action or summary proceeding commenced by the tenant against the landlord, arising out of the failure of the landlord to perform any covenant or agreement in the lease. The court shall, in its discretion, order the landlord to pay such attorney's fees or expenses, or both, that are actually and reasonably incurred by a tenant who is the successful party in such actions or proceedings to the same extent the landlord is entitled to recover attorney's fees and expenses, or both, as provided in the lease. An order based on this implied covenant shall require the landlord to pay the tenant such costs either as money damages or a credit against future rent, as determined by the tenant. Any waiver of this section shall be void as against public policy.
Notwithstanding the foregoing, in an action or summary proceeding for non-payment of rent a tenant who pays all rent currently due and owing on or after the filing of the complaint but prior to entry of a final judgment, and whom the court finds presented no meritorious defense to the complaint other than said payment, shall not be deemed to have successfully defended against the action or summary proceeding for the purposes of the award of attorney's fees or expenses, or both.
As used in this act "expenses" shall include expenses directly related to the litigation including, but not limited to, court costs and expenses for witnesses. "Expenses" shall not include personal expenses for travel, reimbursement for missed work time, or child care.
2. If a residential lease agreement provides that the landlord is or may be entitled to recover attorney's fees or expenses, or both from the tenant for any action or summary proceeding arising out of the lease, as described in section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), the lease clause shall also contain the following provision in no less than 14 point bold point type:
IF THE TENANT IS SUCCESSFUL IN ANY ACTION OR SUMMARY PROCEEDING ARISING OUT OF THIS LEASE, THE TENANT SHALL RECOVER ATTORNEY'S FEES OR EXPENSES, OR BOTH FROM THE LANDLORD TO THE SAME EXTENT THE LANDLORD IS ENTITLED TO RECOVER ATTORNEY'S FEES OR EXPENSES, OR BOTH AS PROVIDED IN THIS LEASE.
3. This act shall take effect immediately, and shall apply to all new lease agreements for real property executed on and after the first day of the month following enactment.
STATEMENT
This bill would require that a residential landlord pay a tenant's attorney's fees or expenses, or both, when the tenant prevails in a legal action or summary proceeding between the two if the landlord has reserved the same right through the lease.
The court may only award to the successful party expenses that are directly related to the proceedings. Expenses would include court costs and fees for witnesses but would not include personal expenses for travel, child care, or reimbursement for missed work time. An award of attorney's fees or expenses, or both, to a tenant is in the court's discretion, and a tenant may only recover to the extent that the landlord would be entitled to recover under the lease.
In an action or summary proceeding initiated by the landlord for non-payment of rent, a tenant who pays all rent currently due and owing after the filing of the complaint but prior to entry of a final judgment, and whom the court finds presented no meritorious defense to the action other than said payment, would not be deemed to have successfully defended against the action or summary proceeding for the purposes of an award of attorney's fees or expenses, or both.
Additionally, section 2 of the bill provides that a lease agreement that includes a provision regarding payment of a landlord's attorney's fees or expenses, or both, must include a provision requiring the landlord to pay the tenant's attorney's fees or expenses, or both. The tenant would be permitted to recover such attorney's fees or expenses, or both to the same extent as the landlord is entitled to recover as provided in the lease.
