Construction law and labor attorneys predict a recent precedential decision by the Appellate Division will profoundly impact contractors and subcontractors involved in small claims litigation.

In JHC Industrial Services v. Centurion Cos., a three-judge panel, taking its cue from the New Jersey Supreme Court, declined last month to construe the state’s fee-shifting statutes to require proportionality between damages recovered and counsel-fee awards for the prevailing party.

Lisa Lombardo of Gibbons. Courtesy photo