Authored By: Robert Mohr
Carson City, Nevada District Court Judge James Russell declared that a ballot initiative proposed by the newly formed PAC Nevadans for Fair Recovery is in line with state requirements for petitions. The petition, known as the "Nevadans for Fair Recovery Act," would limit contingency fees for civil cases in the state to 20%. Namely, Nevada requires petitions to address only a single issue and give a brief, objective description of the effects. The description of the petition's effects was the point of contention between supporters and challengers.
Among the supporters is ridesharing company Uber, who backed the PAC with $4,000,000 in March of 2024, according to the Nevada Secretary of State's website. Uber also filed an 11-page brief on April 19th defending the language of the petition and citing the 200-word limit of the proposal, and describing the matter as a "highly-charged subject area, in which Plaintiffs' own arguments indicate the ready potential for hyperbole and inflammatory rhetoric." The plaintiffs in question are the Uber Sexual Assault Survivors for Legal Accountability and the Nevada Justice Association.
These two organizations argued in an initial 43-page complaint on April 8th that the proposal misrepresented the downstream effects of the change by ignoring two factors: the reduction in contingency fees would "decrease victims' ability to recover for their injuries and violations of their rights because it would make it significantly harder for them to obtain competent representation," and that Nevada's Medicaid program would lose out on millions in reimbursed costs that come from contingency fee-based representation. The plaintiffs argue this is because contingency fees allow lawyers to take on cases from people who cannot afford representation billed at an hourly rate.
The proposed 20% restriction is lower than Oklahoma's cap of 50% and Michigan's 33% maximum. These are the only two states that have a limit on contingency fees in all civil cases. Other states, like New York, only have limits on particular types of civil cases, such as medical malpractice.
At Advocate Capital, we support contingent-fee law firms and plaintiffs' rights. Contingent-fee law firms are the keys to the civil courthouses in our country, and we appreciate their hard work to fight for justice for their clients.
