Paul Enos, CEO of the Nevada Trucking Association, criticized the legal system for being "rigged in favor of billboard attorneys and against everyone else," asserting that Nevada residents are left to "foot the bill" while "some of the richest attorneys in the country" reap significant profits. This statement was shared by Enos in a press release dated March 18.
"The system is rigged in favor of billboard attorneys and against everyone else, and the result is lawyers end up winning while the rest of Nevadans foot the bill," said Enos. "We support any measure that protects victims, reduces paydays for some of the richest attorneys in the country, while helping reduce costs for Nevadans. We've looked for years for reasonable compromises to achieve that, but unfortunately we have no choice but to turn to the ballot to get relief."
The political action committee Nevadans for Fair Recovery has responded to this issue by filing a ballot initiative. According to the press release, this initiative aims to cap attorney contingency fees at 20% with the intention of safeguarding plaintiffs' judgements.
Shouse Law Group clarifies that under current Nevada law, contingency fees must be deemed "reasonable." Personal injury attorneys in Nevada typically charge a 40% contingency fee. To illustrate, if a plaintiff is awarded $100,000, the attorneys would receive $40,000. The plaintiff is then obligated to use part of the remaining $60,000 to cover court costs which can encompass clerks’ fees, court reporters’ fees, jurors’ fees, witness fees and other expenses.
According to a report from the Insurance Information Institute (III), large plaintiff attorney fees are considered a form of "legal system abuse." The III states that escalating contingency fees result in plaintiffs receiving smaller portions of their settlements while attorneys and third parties who fund lawsuits receive larger shares. It further adds that such abuses within the legal system are driving "social inflation," leading to increased costs for all insurance policyholders.
Bankrate provides insight into how these developments impact consumers directly. It reveals that Nevada drivers are currently paying an average of $2,779 annually for full coverage car insurance - significantly higher than the national average cost of full coverage auto insurance which stands at $2,014.
According to information from the American Trucking Associations, Enos has served as CEO of the Nevada Trucking Association since 2006. He is also a member of the board of directors for the Nevada Transportation Network Self Insured Group and has previously served as manager of government affairs for the Retail Association of Nevada.