Law360, New York ( May 22, 2015, 10:23 AM EDT) -- On May 7, the New Jersey Supreme Court issued a unanimous opinion with the potential to materially transform insurance litigation in that state. For many years, New Jersey Rule of Civil Practice 4:42-9(a)(6) has permitted state court judges to award counsel fees to any "successful claimant" in an action brought "under a liability or indemnity policy of insurance." In Occhifinto v. Olivo Construction Company,[1] however, New Jersey's highest court broadly defined the definition of "successful claimant" and seemingly gave short-shrift to the discretionary component of this rule. Moreover, an argument can be made that Occhifinto moves New Jersey down the path towards becoming a "direct action" state. Still further, for reasons discussed below, Occhifinto is likely to impact domestic insurers in New Jersey more negatively than it will affect nonresident liability carriers...