Attorney Fees in NJ Lemon Law Cases

NJ has two independent mandatory attorney-fee provisions — one in the Lemon Law itself (§ 56:12-42, which also includes mandatory expert-witness fees) and one in the Consumer Fraud Act (§ 56:8-19). Combined with Magnuson-Moss, NJ provides three independent attorney-fee shifting hooks — among the strongest fee frameworks of any state. The CFA hook is particularly powerful because trebling and fees are both mandatory without requiring willfulness.

Three statutes, three approaches to fees

Statute	Attorney fees	Where pursued
NJ Lemon Law (§ 56:12-42)	Mandatory + expert-witness fees on prevailing	NJ Superior Court
CFA (§ 56:8-19)	Mandatory on any CFA violation (no willfulness required)	NJ Superior Court or federal court
Magnuson-Moss (§ 2310(d)(2))	Federal; strongly presumed	Federal or state court

DCA arbitration does not include attorney-fee recovery.

§ 56:12-42 — the Lemon Law fee provision

N.J.S.A. § 56:12-42 provides:

A consumer who prevails in any action under this section shall be allowed by the court reasonable attorney’s fees, fees for expert witnesses and costs.

This is mandatory language — the court must award fees on prevailing. NJ joins California § 1794(d), North Carolina § 20-351.8(3), Ohio § 1345.75, Pennsylvania § 1958, and New York § 198-a(l) in having statutory mandatory fee-shifting in the lemon law itself.

The mandatory expert-witness fees provision is particularly strong — most states don’t include experts in fee recovery. NJ’s coverage of expert fees can add substantially to settlement value in cases requiring engineering or mechanical experts.

In NJ lemon-law cases, attorney-fee awards under § 56:12-42 typically range:

• Settlement cases (most): $25,000-$55,000.
• Tried cases: $55,000-$150,000+.
• Expert fees: typically $5,000-$25,000 additional.

CFA § 56:8-19 — mandatory fees on any CFA violation

The CFA fee provision under § 56:8-19 provides:

In all actions under this section … the court shall also award reasonable attorneys’ fees, filing fees and reasonable costs of suit.

Mandatory fees attach to any CFA violation — no willfulness or unwarranted-refusal requirement (unlike NC UDTPA § 75-16.1, which requires both). This is structurally stronger than peer-state consumer-protection-act fee provisions.

Awards typically range:

• Settlement cases: $25,000-$60,000.
• Tried cases: $60,000-$150,000+.

The § 56:8-19 fees stack on top of § 56:12-42 fees when both claims succeed.

Magnuson-Moss federal fee provision

15 U.S.C. § 2310(d)(2) provides federal-court attorney-fee recovery in Magnuson-Moss actions. Available in both federal court (concurrent jurisdiction over $50K cases) and state court.

How fee-shifting changes NJ case dynamics

NJ’s dual mandatory fee provisions plus Magnuson-Moss create some of the most economically powerful lemon-law dynamics in the country.

With all three:

• Refund: $30,000-$70,000.
• CFA mandatory treble damages: $18,000-$40,000.
• § 56:12-42 fees + expert fees: $30,000-$70,000.
• CFA § 56:8-19 fees: $25,000-$60,000.
• Consumer net: substantial.

Contingency representation in NJ

Most experienced NJ lemon-law attorneys work on modified contingency:

• No fee upfront.
• Costs advanced by the attorney.
• Fees recovered from the manufacturer through § 56:12-42 (mandatory + expert fees), CFA § 56:8-19 (mandatory on any violation), or Magnuson-Moss.

What about DCA arbitration?

DCA Lemon Law Unit arbitration doesn’t include attorney-fee recovery.

This is why consumers with CFA exposure typically pursue court action (with all three fee provisions) instead of or in addition to DCA arbitration.

The settlement breakdown

A typical settled NJ lemon-law case might distribute:

• Refund value (including sales tax): 40-55%.
• CFA damages (typically trebled): 20-30%.
• Attorney fees and costs: 25-35%.

Why pleading both NJ fee provisions matters

Every viable NJ lemon-law case should plead both § 56:12-42 and CFA § 56:8-19 because:

• § 56:12-42 requires “prevailing” on the Lemon Law claim — could fail if the Lemon Law claim is dismissed on procedural grounds (e.g., notice).
• § 56:8-19 requires “any CFA violation” — different fact pattern, no willfulness requirement.
• Pleading both protects against either claim being dismissed.

Bottom line

NJ’s dual mandatory attorney-fee framework — plus mandatory expert-witness fees under § 56:12-42 — is among the strongest in the country. § 56:12-42 + § 56:8-19 + Magnuson-Moss provides comprehensive fee-recovery coverage that funds the practice. Combined with CFA’s mandatory § 56:8-19 trebling (no willfulness), NJ’s framework is structurally elite.

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