SB365 - Prohibits an attorney from contracting for or collecting certain fees. (BDR 1-1016)

S.B. 365 - *SB365* SENATE BILL NO. 365–SENATORS HANSEN AND TITUS MARCH 17, 2025 ____________ Referred to Committee on Judiciary SUMMARY—Prohibits an attorney from contracting for or collecting certain fees. (BDR 1-1016) FISCAL NOTE: Effect on Local Government: No. Effect on the State: No. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to attorneys; prohibiting an attorney who represents a plaintiff in certain civil actions from contracting for or collecting a fee contingent on the amount of recovery in excess of 20 percent of the amount recovered; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law prohibits an attorney who represents a plaintiff in a civil action 1 against a provider of health care for professional negligence from contracting for or 2 collecting a fee contingent on the amount of recovery in excess of 35 percent of the 3 amount recovered. Existing law defines “recovered” as the net sum recovered by 4 the plaintiff after any disbursements or costs in connection with the prosecution or 5 settlement of the claim and provides that costs of medical care incurred by the 6 plaintiff and general and administrative expenses incurred by the office of the 7 attorney are not deductible disbursements or costs. (NRS 7.095) Existing law also 8 limits the amount of a fee payable to all retained attorneys or law firms representing 9 certain state agencies under a contingent fee contract to 25 percent of the amount 10 recovered, exclusive of any costs and expenses provided for by the contract and 11 actually incurred by the retained attorneys or law firms. (NRS 228.1116) 12 This bill prohibits an attorney who represents a plaintiff in a civil action, other 13 than actions against a provider of health care for professional negligence or matters 14 contracted for by an attorney or law firm representing certain state agencies, from 15 contracting for or collecting a fee contingent on the amount of recovery in excess of 16 20 percent of the amount recovered. For such purposes, this bill defines 17 “recovered” as the net sum recovered by the plaintiff after deducting any 18 disbursements or costs in connection with the prosecution or settlement of the 19 claim. 20 – 2 – - *SB365* THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 7 of NRS is hereby amended by adding 1 thereto a new section to read as follows: 2 1. Except as otherwise provided in NRS 7.095 and 228.1116, 3 an attorney shall not contract for or collect a fee contingent on the 4 amount of recovery for representing a person seeking damages in 5 a civil action in excess of 20 percent of the amount recovered. 6 2. The limitation set forth in subsection 1 applies to all forms 7 of recovery, including, without limitation, settlement, arbitration 8 and judgment. 9 3. As used in this section, “recovered” means the net sum of 10 money recovered by the plaintiff after deducting any 11 disbursements or costs incurred in connection with the 12 prosecution or settlement of the claim. 13 Sec. 2. The amendatory provisions of this act apply to any 14 contract entered into on or after October 1, 2025. 15 H