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Bill > A1418


NJ A1418

NJ A1418
Specifies nonprevailing party in proceeding or judgment deemed frivolous by judge may include municipality or municipal corporation.


summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

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.

AI Summary

This bill clarifies that if a judge determines that a complaint, counterclaim, cross-claim, or defense filed by a party who did not win their case was frivolous, meaning it was brought in bad faith, for harassment, or without any reasonable legal basis, then that losing party can be ordered to pay the other side's legal costs and attorney fees, and this can now explicitly include municipalities or municipal corporations. The bill also clarifies that the term "nonprevailing person" is synonymous with "nonprevailing party," ensuring that local government entities are subject to these sanctions when they engage in frivolous litigation, as confirmed by a recent New Jersey Supreme Court case.

Committee Categories

Justice

Sponsors (1)

Last Action

Introduced, Referred to Assembly Judiciary Committee (on 01/13/2026)

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