The political action committee (PAC) Nevadans for Fair Recovery released a fact sheet in May detailing the group’s plan to cap attorney contingency fees at 20% and put more money in victims’ pockets.
According to the fact sheet, few existing restrictions on attorneys’ fees in Nevada mean that attorneys frequently take nearly half of settlements and awards intended to compensate their clients. These large attorney fees leave victims with less money to cover medical bills and other expenses. The PAC’s initiative, which could be on Nevada’s 2026 ballot, would impose a 20% cap on attorneys’ contingency fees, ensuring that plaintiffs receive at least 80% of their net settlements and awards. The measure would not limit the size of settlements or awards and would allow attorneys to continue receiving reimbursement for their legal expenses.
Capping attorneys’ fees would also benefit Nevada’s consumers and taxpayers by decreasing the amount of money they pay as a result of excessive lawsuits, according to the fact sheet. "Rampant lawsuits" lead to higher costs for goods and services, particularly car insurance.
Nevadans are paying an average of $3,004 for full coverage car insurance annually, compared to the national average of $2,299, according to Bankrate.
On May 10, Carson City District Court Judge James Russell dismissed arguments against the ballot initiative, ruling that the initiative meets Nevada’s requirements. Russell said the initiative meets the state’s requirements that ballot initiatives can only focus on one subject, provides the full text of the proposed measure, and its description of the effects the 20% cap would have is legally adequate.
Nevadans for Fair Recovery filed the ballot initiative in March, according to the Las Vegas Review-Journal. Industry groups including the Retail Association of Nevada and the Nevada Trucking Association support the measure.