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Heads up to PI folks: Uber is coming for your contingency. They are backing a PAC to promote a statutory initiative to cap attorneys fees at 20% beginning in 2027.
https://thenevadaindependent.com/article/uber-backed-proposal-filed-to-cap-attorney-fees-in-civil-cases
LOL at the idea that the typical PI lawyer is making millions. Makes for a nice villain story though, probably a very effective story.
I don’t practice in P.I., but if enacted, this probably means legally meritorious, but financially marginal cases never get representation, and consequently in many cases, no recovery at all.
But sure, tell us how you’re standing up for the little guy, proponents.
Zero chance this passes. I doubt even if it goes to a ballot question, that the public passes it.
Zero? Regardless of the merits, people reflexively hate lawyers.
Actually, if you have been here long enough you would know reflexively that Nevadans don’t actually hate PI lawyers. Look at Glen Lerner’s success.
I know, its weird.
But, if it goes to a ballot initiative, whoever has the most effective media campaign will win.
Lawyer’s Bad, Uber good.(Keep more of your money)
vs.
We fight for you against Big Bad Insurance!
I think the lawyers win pretty handily. (Full disclosure: I do some PI as a solo 10-15 cases per year.)
Clearly you weren’t around when they “reformed” med mal cases through ballot initiative. This absolutely can pass, it has before. It has lead to it being pretty difficult to find someone to take a med mal case.
Alternate theory: Cases will just get worked up to bigger meds so that the new 20% is the same as the old 33.33%.
More unnecessary med-fraud!
I was here.
That success was because the Dr’s and the insurance companies set out a very effective media campaign and the Med Mal lawyers didn’t have near the sway that the PI/Car Accident bar does.
Just my opinion. But I doubt that this effort will have the successful push from Uber related parties that the insurance companies and Doctors did. I also see the PI bar being much more organized in there efforts.
Interesting. So why would Uber choose to back this particular initiative? Do they anticipate having to defend a slew of low-value claims in the near future and are hoping that freezing contingency fees for such low-level claims will result in no attorneys taking the cases?
Regardless, as a Plaintiff’s attorney who has never had to advertise on a billboard, a word of advice to Uber: when a company makes individual litigation unfeasible either as a result of over-litigation, unreasonable settlement postures, or otherwise, it just opens the door to exploration of resolution of claims on a class-wide basis; and when companies as large as Uber make mistakes, they often do so at a systemic manner. So assuming they are successful, Uber and every other large company in Nevada supporting this initiative may deeply regret the fruits of their temporary success.
Good analysis.
Also, this could shoot them in the foot in other ways, as well. If too many smaller claims are denied and unlitigated as currently, someone will pick these up and class them and potentially continue to clip the insurance industry for bad faith, making Uber drivers uninsurable.
Alternatively, Uber then offers coverage (another profit center) and denies claims opening them up for bad faith.
Yeah – but its not Uber. Its Nevadans for Fair Recovery, which is “Uber and a handful of Nevada business groups”. This could also be almost every P&C carrier in Nevada. Who is this group? Not listed with NVSOS, webpage doesn’t load and no other information. The article doesn’t list who the spokesperson is either.
Admittedly I am no fan of the current system. Auto insurance rates have gone up 36% in Nevada (double the national average) and were already high to begin with. We have a few features and peculiarities in Nevada which contribute to this. Clark county Juries, disclosure of policy limits, loose treatments etc.
From the article: “In addition to Uber, the effort is backed by the Retail Association of Nevada and the Nevada Trucking Association.”
I don’t do PI, but does a jury get told how much the Plaintiff’s attorney is getting from a verdict? If so, how exactly is it that the percentage the attorney gets has anything to do with how much money the jury awards? Honestly, it seems like this will have unintended consequences. 20% will become the new 33% and the cases will magically have higher medical bills than before.
No cap on defense attorney’s fees though……
P.I. 20 per cent. Personal injury attorney here who has been in the business 25 years or more. In many other jurisdictions, there have been limits placed on the percentage of fees charged by personal injury attorneys. Generally 1/3 is the uppermost limits. Forty percent that is common here for cases litigated is unheard of. Many jurisdictions limit or put a cap on fees. This is done by court rule. Quite frankly, the fees charged here in Nevada are obscene. Some attorneys who have advertised “We Won’t Take More than You ” have addressed this problem. Some clients are able to negotiate lower fees when they shop their case. Certainly a demand letter settlement should only be 20 per cent. Cases that are litigated merit thirty more cent or even
1/3. More than that is outrageous. Reform is coming. It is just when it is coming and how it is coming. Something must be done to protect innocent tort victims. Not sure that this Uber backed plan is the way to go. But it is a start. Court approval should be required on cases where more than 1/3 is charged. Forty per cent should be the exception not the rule. Clients are getting ripped off with inflated medical liens, inflated costs and high per centage contingency fees.
Forget the 40% fee for litigated cases… I’ve seen MANY firms’ fee agreements call for 50% once the complaint is filed. Wild times.
Charging the client the full lien amount after paying a small percentage of the overinflated price.
50% is not unheard of in small collection matters.
What about 20% cap pre-lit, 33% when the complaint is filed and 40% if it goes to trial? Seems reasonable.
I do some PI but it is not the largest part of my practice. Here is the problem you are going to run into. Attorneys are simply going to Brunzell it and say that it is converted to an hourly and their hourly rate is $800 an hour.
I’m hearing Erika Mendoza got dept. 27 seat.
Another judge with ONLY criminal law experience. FFS.
That is the least of her problems. Her complete lack of understanding about what is appropriate tone and behavior in a courtroom is more problematic. What a nightmare.
Family Court Update: Willick filed a motion for re-hearing in the Falconi writs. You’d think he would’ve learned after the beat down he got (and 6-figure fees and costs sanction) from he who shall not be named, but he hasn’t. He also takes exception with the footnote the supremes included regarding his representations to the court. Again, you’d think he would’ve learned. Anyways, he just argues the exact same garbage he lost on the first time around. Maybe the supremes will give Luke some of that sweet money contemplated by Miller v. Wilfong? How many 6-figure sanctions can one attorney eat before he learns his lesson? Some people never learn. Watch this space!! Bwahahahaha
We have two camera access hearings coming up this week. Stay tuned!
I know both Alex (very nice guy) and Marshal (always been nice to me). That’s all I wanted to say. Thank you.
Marshal can be nice on the surface. He’s always willing to take a call and share a form. However, it was suggested to me a while back that the reason Marshal is so nice about stuff like that is to compensate for the rest of his personality/behavior. I hadn’t considered that, but once it was said out loud I can’t say I disagree.
The best thing to come out of Marshal’s office (EVER) was Bob Cerceo.