Explanation – Matter in italics is new; matter between brackets [omitted material] is material to be omitted.

THE PEOPLE OF THE STATE OF NEVADA DO ENACT AS FOLLOWS

Sec. 1. Title 1, Chapter 7 of the Nevada Revised Statutes is hereby amended to add a new section, as follows:

Sec. 2.1. 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.

2. The limitation set forth in subsection 1 applies to all forms of recovery, including, without >limitation, settlement, arbitration and judgment.

3. For the purposes of this section, “recovered” means the net sum recovered by the plaintiff or >plaintiffs after deducting any disbursements or costs incurred in connection with the prosecution or settlement of the claim.

Sec. 3. Severability. If any part of this Act be declared invalid, or the application thereof to any person, thing or circumstance is held invalid, such invalidity shall not affect the remaining provisions or application of this Act which can be given effect without the invalid provision or application, and to this end the provisions of this Act are declared to be severable. This subsection shall be construed broadly to preserve and effectuate the declared purpose of this Act.

DESCRIPTION OF EFFECT

If enacted, this initiative will limit the fees an attorney can charge and receive as a contingency fee in a civil case in Nevada to 20% of any amount or amounts recovered, beginning in 2027.

In Nevada currently, most civil cases do not limit an attorney’s contingent fee percentages, except that such fees must be reasonable. Current law does, however, limit attorney fees in medical malpractice cases to 35% of any recovery, and caps contingency fees for a private attorney contracted to represent the State of Nevada to 25% of the total amount recovered.