DORIS GAMBRELL VS. HESS CORPORATION, INC.(L-7761-12, MIDDLESEX COUNTY AND STATEWIDE)
A-4001-15T3
| N.J. Super. Ct. App. Div. | Jun 1, 2017Background
- After Superstorm Sandy in 2012, Hess sold mislabeled diesel as gasoline at three stations; Hess admitted the error and reimbursed customers over $1 million pre‑litigation.
- Doris and Eugene Gambrell (original named plaintiffs) and Falguni Patel sued Hess on behalf of a putative class asserting TCCWNA, Consumer Fraud Act, Motor Fuel Retail Sales Act, breach of contract and related claims; Patel later became a named class representative.
- The parties mediated in February 2014, signed a memorandum of understanding, and eventually executed a class settlement (effective April 15, 2015) covering 583 persons and 645 transactions, providing gift cards and individual payments to the class representatives.
- The settlement permitted Class Counsel to apply for attorneys’ fees and allowed Hess to object; the trial court awarded $274,576.50 in fees and full costs on final approval (September 30, 2015), while reserving the right to consider a supplemental fee application for post–July 31, 2015 work.
- Class Counsel sought a supplemental fee award of $42,556.50 (plus costs) for work after July 31, 2015; the trial court denied supplemental fees (but awarded costs) finding prior fees were generous and post‑July 31 work was unnecessary or subsumed in the earlier award.
- Patel appealed the denial of supplemental fees and sought application of current rates; the Appellate Division affirmed, finding no abuse of discretion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court abused its discretion by denying Class Counsel’s supplemental fee application for post‑July 31, 2015 work | Patel: supplemental hours were compensable; prior award didn’t cover post‑July 31 work and the settlement allowed seeking additional fees | Hess: prior award was reasonable and generous; post‑July 31 work was unnecessary, anticipated, or subsumed | Denied — trial court acted within discretion; additional fees were unreasonable under circumstances |
| Whether the court must award fees for time spent preparing/applying for the supplemental fee petition | Patel: fees for fee‑application work should be awarded | Hess: initial award already included fee‑application time; supplemental fee petition work not compensable absent showing of reasonableness | Denied — initial award accounted for fee‑application time; no entitlement to supplemental fee time |
| Whether the trial court impermissibly rewrote the settlement by denying supplemental fees | Patel: refusal to award post‑July 31 fees conflicts with settlement’s provision permitting supplemental fee requests | Hess: settlement only permits application; court retains discretion to award only reasonable fees | Denied — court’s decision consistent with settlement which authorizes awarding only reasonable fees |
| Whether appellate court should itself award supplemental fees/apply current rates instead of remanding | Patel: appellate award and updated rates appropriate | Hess: matter fits within trial court’s discretion and factual findings | Denied — appellate court declined to grant relief and affirmed trial court; no remand necessary |
Key Cases Cited
- Rendine v. Pantzer, 141 N.J. 292 (1995) (establishes lodestar method and adjustments for reasonable hours and rates)
- Rode v. Dellarciprete, 892 F.2d 1177 (3d Cir. 1990) (hours not reasonably expended include excessive, redundant or unnecessary time)
- Packard‑Bamberger & Co. v. Collier, 167 N.J. 427 (2001) (appellate review of attorney fee awards)
- Grubbs v. Knoll, 376 N.J. Super. 420 (App. Div. 2005) (fee award overturned only for clear abuse of discretion)
