Specifies nonprevailing party in proceeding or judgment deemed frivolous by judge may include municipality or municipal corporation.

A1418

ASSEMBLY, No. 1418

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman ELLEN J. PARK

District 37 (Bergen)

SYNOPSIS

���� Specifies nonprevailing party in proceeding or
judgment deemed frivolous by judge may include municipality or municipal
corporation.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act

concerning frivolous litigation and
municipalities and amending P.L.1988, c.46.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 1 of P.L.1988,
c.46 (C.2A:15-59.1) is amended to read as follows:

���� 1.��� a.� (1)� A party who
prevails in a civil action, either as plaintiff or defendant, against any other
party
, including a municipality or municipal corporation,
may be awarded
all reasonable litigation costs and reasonable attorney fees, if the judge
finds at any time during the proceedings or upon judgment that a complaint,
counterclaim, cross-claim
,
or defense of the nonprevailing
[
person
]

party

was frivolous.�

���� (2)�� When a public entity is
required or authorized by law to provide for the defense of a present or former
employee, the public entity may be awarded all reasonable litigation costs and
reasonable attorney fees if the individual for whom the defense was provided is
the prevailing party in a civil action, and if there is a judicial
determination at any time during the proceedings or upon judgment that a
complaint, counterclaim, cross-claim, or defense of the nonprevailing party was
frivolous.�

���� b.��� In order to find that a
complaint, counterclaim, cross-claim
,
or defense of the nonprevailing
party was frivolous, the judge shall find on the basis of the pleadings,
discovery, or the evidence presented that either:�

���� (1)�� The complaint,
counterclaim, cross-claim
,
or defense was commenced, used
,
or
continued in bad faith, solely for the purpose of harassment, delay
,
or
malicious injury; or�

���� (2)�� The nonprevailing party
knew, or should have known, that the complaint, counterclaim, cross-claim
,

or defense was without any reasonable basis in law or equity and could not be
supported by a good faith argument for an extension, modification
,
or
reversal of existing law.�

���� c.���� A party or public
entity seeking an award under this section shall make application to the court
[
which
]

that

heard the matter.� The application shall be supported by an affidavit stating
in detail:�

���� (1)�� The nature of the
services rendered, the responsibility assumed, the results obtained, the amount
of time spent by the attorney, any particular novelty or difficulty, the time
spent and services rendered by secretaries and staff, other factors pertinent in
the evaluation of the services rendered, the amount of the allowance applied
for, an itemization of the disbursements for which reimbursement is sought, and
any other factors relevant in evaluating fees and costs; and�

���� (2)�� How much has been paid
to the attorney and what provision, if any, has been made for the payment of
these fees in the future.�

(cf: P.L.1995, c.13, s.1)

���� 2.��� This act shall take
effect immediately.

STATEMENT

���� This bill amends existing law
to specify that, if a judge finds at any time during a proceeding or upon
judgement that a complaint, counterclaim, cross-claim, or defense by a
nonprevailing party was frivolous, the nonprevailing party in that proceeding or
judgment may include a municipality or municipal corporation.� The bill also
clarifies that �nonprevailing person� means �nonprevailing party.�

���� In
Borough of Englewood
Cliffs v. Trautner
, 260 N.J. 410, (2025) the New Jersey Supreme Court
addressed whether the term �nonprevailing person� in litigation deemed to be
frivolous by a judge may include the Borough of Englewood Cliffs.� Following an
analysis of the statutory language and legislative history, the Court held that
municipalities and municipal corporations that engage in frivolous litigation
may be considered �nonprevailing persons� and are to be subject to sanctions.