The political action committee (PAC) Nevadans for Fair Recovery released a fact sheet in May about a ballot initiative seeking to cap attorney contingency fees at 20%. According to a survey included in the fact sheet, 71% of Nevadans support the initiative.
The ballot initiative would revise Title 1, Chapter 7 of the Nevada Revised Statutes to add a section stating: "For causes of action arising after January 1, 2027, an attorney shall not contract for or collect a fee contingent on the amount of recovery for representing a person seeking damages in a civil case in excess of twenty percent of the amount of recovery," according to the initiative. The 20% cap would apply to "all forms of recovery, including, without limitation, settlement, arbitration and judgment."
According to the fact sheet, the ballot initiative aims to put more money in victims’ pockets by capping the amount of settlements and damages attorneys can claim through contingency fees. The fact sheet cites a Public Opinion Strategies poll conducted among Nevada voters in February which found that 23% of respondents oppose the initiative, 8% are undecided, and 71% support the fee cap.
Few existing restrictions on attorneys’ fees in Nevada mean that attorneys frequently take nearly half of settlements and awards that are intended to compensate their clients. These large attorney fees leave victims with less money to cover medical bills and other expenses. The fee cap would not limit the size of settlements or awards and would allow attorneys to continue receiving reimbursement for their legal expenses.
According to a court filing, the ballot initiative survived a legal challenge after Judge James Russell dismissed arguments against it on May 10. Russell ruled that the initiative meets Nevada’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, as reported by the Las Vegas Review-Journal. Industry groups including the Retail Association of Nevada and the Nevada Trucking Association support the measure.