John Giovanni Granata v. Edward F. Broderick, Jr.

Summary

The Supreme Court of New Jersey affirmed the Appellate Division’s judgment concerning the priority of competing claims to an attorney’s fee award. The Court upheld the determination that anticipated attorney’s fees could constitute an account receivable secured under Article 9 of the Uniform Commercial Code and that OKS Realty perfected its security interest by filing a financing statement. The Court affirmed substantially for the reasons stated in the Appellate Division’s published opinion.

Holdings

1. Under the circumstances presented, an attorney's pledge of anticipated counsel fees may be treated as an account receivable and secured under Article 9 of the Uniform Commercial Code.
2. OKS complied with the UCC requirements to attach and perfect its security interest in Acciavatti's anticipated attorney's fees by executing a security agreement describing the collateral and filing a financing statement covering those fees.
3. OKS's perfected security interest had priority over the later liens obtained by Gourvitz and Rotenberg.

Questions Presented

1. Whether an attorney's anticipated fees arising from pending litigation may constitute an account receivable and collateral subject to a security interest under Article 9 of the Uniform Commercial Code.
2. Whether OKS Realty's security interest in Acciavatti's anticipated attorney's fees attached and was perfected by its security agreement and UCC-1 financing statement.
3. Whether OKS Realty's perfected security interest had priority over the later judgment liens obtained by Gourvitz and Rotenberg.

Disposition

affirmed