In this statutory discrimination action under the Law Against Discrimination, the minor plaintiff retained appellant law firm to represent her against a Board of Education for failing to take appropriate steps to address bullying by other students. The retainer agreement provided for a forty-five percent contingent fee or a fee based on hourly rates, whichever was higher. After conducting discovery and surviving a defense summary judgment motion, the case settled pre-trial for $100,000, inclusive of attorney's fees and costs, with plaintiff waiving the right to make application for a fee-shifting award against defendant. Plaintiff then sought approval of the settlement at a friendly hearing without the law firm seeking approval of a contingent fee higher than twenty-five percent of the net recovery pursuant to Rule 1:21-7(f).
The trial court approved the settlement amount and costs, but reduced the contingent fee to twenty-five percent of the net recovery. The court affirmed, holding that in the absence of an application for a fee-shifting award, the contingent fee is limited to twenty-five percent of the minor plaintiff's net recovery in the absence of a successful application for an enhanced fee under Rule 1:21-7(f).