N.J. High Court to Decide if Counsel Fee Awards Can Cross State Lines

March 15, 2010

The New Jersey Supreme Court heard arguments last week on whether a corporation should be awarded counsel fees in a successful coverage dispute when it prevailed in a state that does not normally provide for them. A state appeals court held that since the corporation was successful in New Jersey on its coverage claim, it could recover counsel fees for the cost of fighting a suit in Illinois, because it was part of the overall controversy. The insurer appealed, protesting that Illinois law does not allow such recovery.