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Uber-backed group continues drive for cap on attorney fees

Updated September 11, 2024 - 3:51 pm

An Uber-backed group seeking to cap the percentage of fees attorneys can receive in civil cases submitted more than 200,000 signatures to county offices on Wednesday for a proposed 2026 ballot initiative.

The “Nevadans for Fair Recovery” petition is seeking to cap attorney fees in civil cases at 20 percent. There is currently no cap on how much attorneys can collect in contingency fees, except in certain circumstances.

The petition needed signatures from at least 10 percent of voters in the preceding general election — or 102,362 valid signatures — and the group submitted 206,313 signatures at multiple count offices on Wednesday, according to a statement. More than 150,000 of those signatures were submitted in Clark County.

“Nevadans overwhelmingly support this ballot measure to protect plaintiffs by capping attorney’s fees,” a spokesperson for Nevadans for Fair Recovery said in an emailed statement. “We’re very confident the measure will qualify, and we’re committed to passing it in 2026.”

Now that signatures have been submitted, the petition will be sent to the Legislature, and lawmakers will have 40 days to approve or reject the measure.

If lawmakers approve the measure and it receives the governor’s signature, it will become law. But if lawmakers don’t take action on the measure or vote it down, the initiative will appear on the ballot in the next general election.

Lawmakers will be able to propose a different measure on the same subject, to be approved by the Legislature and the governor, which could appear on the ballot with the original initiative.

The petition has been opposed by the Nevada Justice Association, and opponents have argued that contingency fees encourage frivolous litigation and can encourage attorneys to settle for less than what could possibly be awarded in cases. Proponents of contingency fees have said they improve access for plaintiffs who couldn’t otherwise afford an attorney, and give attorneys incentives to win cases.

In April, the Nevada Justice Association and a group representing sexual assault survivors filed a lawsuit in Carson City District Court challenging the proposal and asking for the petition to be blocked from gathering signatures.

The Uber Sexual Assault Survivors for Legal Accountability group alleged that the ballot initiative is a strategy from Uber to silence survivors, by allowing the company to hire the “best and most expensive attorneys,” without limits on attorney fees, while “imposing unprecedented limits on ordinary Nevadans’ ability to obtain legal representation,” the lawsuit said.

The lawsuit is now in front of the Nevada Supreme Court, but the District Court did not bar signatures from being collected while court proceedings are ongoing.

The Nevadans for Fair Recovery PAC had previously argued that it is in trial lawyers’ “financial interests” to prevent the measure from reaching a ballot.

“That’s obviously the position that they have to take to insulate themselves from what they’re really doing, which is denying Nevadans and sexual assault victims from access to our courts,” Nevada Justice Association President Jason Mills said Wednesday when asked about potential financial interests from trial lawyers.

Mills said his group is continuing to fight the ballot initiative in the Supreme Court, which he said could prevent the measure from appearing on a ballot.

According to a press release from Nevadans for Fair Recovery, the ballot initiative would build on similar legislation across the country, including a federal law that caps attorney fees at 20 percent before trial for lawsuits against government employees.

“Nevada’s current system literally adds insult to injury,” Adam Kovacevich, the CEO of the Chamber of Progress, was quoted in the press release. “Victims often leave litigation with high-interest loans and steep medical bills. This is about making sure that the bulk of settlements actually go to the victims.”

Contact Katelyn Newberg at knewberg@reviewjournal.com or 702-383-0240.

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