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Acting NJ Gov. Signs Law Raising Attorney Fees, Likely Benefiting Himself

 August 23, 2024

New Jersey Senate President Nicholas Scutari, currently serving as the state's acting governor, wasted no time in utilizing his temporary executive power by signing a bill that directly benefits him and his legal practice.

With a significant portion of the state's executive branch attending the Democratic National Convention, Scutari took control and raised the cap on attorney fees in workers' compensation cases from 20% to 25% on his first day in the role, as the Washington Examiner reports, drawing attention due to Scutari's own professional involvement as a personal injury and workers compensation attorney.

The legislation, which had been awaiting Gov. Phil Murphy’s signature, will increase the earnings of attorneys like Scutari, who handle workers' compensation cases.

Scutari's role as acting governor comes as both Murphy and Lt. Gov. Tahesha Way attend the Democratic National Convention alongside other high-profile Democratic leaders. As Senate President, Scutari is third in line for the governorship, stepping into the position when both the governor and lieutenant governor are out of state.

Scutari Signs Law Benefiting Himself

The bill signed by Scutari is notable not just for its content but for its timing. The legislation had been waiting for action for less than two months, and its approval now allows attorneys to receive a higher percentage of fees from workers compensation cases, effectively increasing their income. This is particularly significant for Scutari, given his career as an attorney specializing in personal injury and workers compensation cases.

In addition to the bill on attorney fees, Scutari signed three other pieces of legislation. One of these bills will increase the salaries of many judges and county prosecutors across New Jersey. This broadens the scope of the legislative action taken during his brief tenure as acting governor, though none of the other bills directly impact his personal business as clearly as the attorney fee legislation.

Leadership Temporarily Shifts During DNC

The backdrop of Scutari’s actions is the Democratic National Convention, which has drawn many Democratic leaders, including those from New Jersey, to attend. Among them are Murphy and Way, leaving Scutari in charge of state affairs. This temporary shift in leadership is a common occurrence during such events, but the decisions made during this period can have lasting impacts.

While Murphy has appointed George Helmy, his former chief of staff, to the U.S. Senate seat left vacant by Bob Menendez's recent corruption conviction, it is Scutari who has made the most of his brief  powers. By signing the attorney fee bill, he has ensured that his actions as acting governor will have a direct and personal financial impact.

Reaction to Scutari’s Actions

Scutari defended the legislation he signed, emphasizing its broader benefits for workers and the legal profession in New Jersey. “We are committed to protecting New Jersey’s workers and ensuring fair wages,” Scutari stated. “Today’s legislation makes a meaningful adjustment to the contingency attorney fee cap, ensuring fair compensation for attorneys and providing workers with the accessible, quality legal representation they deserve.”

Gov. Gretchen Whitmer of Michigan, who is also attending the Democratic National Convention, commented on the responsibilities of being a governor even while attending such events.

“I am the governor. I’m always the governor of Michigan. It’s 24/7,” she said. “Obviously, if there is something official that needs to be done, I can get back over the state line in about an hour.”

Questions Remain About Timing and Impact

The timing of Scutari’s decision to sign the attorney fee bill has raised questions about the appropriateness of acting governors making decisions that have a direct personal benefit.

While it is not uncommon for acting governors to sign legislation during their brief time in office, the nature of this particular bill, combined with Scutari’s professional background, has led to scrutiny.

The Examiner reached out to Murphy’s office and New Jersey Senate Republicans for comment on Scutari’s actions, though no responses were included in the initial reports.

The lack of immediate reaction leaves open questions about how this decision will be perceived within the broader context of New Jersey politics.

Conclusion: A Bold Move with Personal Stakes

In conclusion, Nicholas Scutari, serving as New Jersey's acting governor, has made a bold move by signing a bill that raises attorney fees in workers compensation cases, a change that directly benefits his legal practice.

This decision, made while much of the state's executive leadership is away at the Democratic National Convention, highlights the complexities and potential conflicts of interest that can arise when temporary power is wielded.

The impact of this legislation, both for New Jersey’s workers and its legal community, will likely continue to be a topic of discussion as Scutari returns to his role as Senate president.