Trial lawyers in Nevada are cashing in, taking up to 40% of settlements meant for victims.
But a new proposal, the Nevadans for Fair Recovery Act, could put an end to that by capping contingency fees at 20%, ensuring plaintiffs keep more of what they win.
It’s a simple, common-sense reform that echoes what Georgia Governor Brian Kemp is pushing in his own state.
The Billion-Dollar Legal Marketing Machine
Trial attorneys spend a staggering amount on advertising annually across various media platforms.
In 2023, the total spending on legal services advertisements reached approximately $1.2 billion. This figure primarily covers television advertising but also includes other forms of media.
Breaking down the spending:
Television advertising:
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- In 2023, over 16 million legal services advertisements aired on TV.
- This translates to about 45,000 TV ads per day, or one ad every two seconds.
- General auto accident, slip and fall, and personal injury advertisements accounted for about $1 billion in spending.
Digital advertising:
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- Morgan & Morgan, one of the largest personal injury law firms, spent $40.3 million on digital ads in 2023, a 47% increase from 2022.
- The same firm spent nearly $240 million on television ads in 2023.
Overall spending trends:
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- In 2021, trial lawyers spent $1.4 billion on advertising.
- From 2017 to 2021, $6.8 billion was spent on more than 77 million national and local ads.
- Some large law firms spend in excess of $10 million per year on broadcast advertisements alone.
The advertising expenditure by trial lawyers has been increasing over the years, with firms continually adjusting their strategies to target the most lucrative cases.
This massive spending on advertising is driven by the potential for high contingency fees, typically ranging from 25% to 40% of settlements or awards.
What the Nevada Proposal Does
The Nevadans for Fair Recovery Act would stop lawyers from taking an excessive cut of their clients’ winnings.
Right now, most personal injury lawyers charge between 33% and 40% of a settlement or court award. That means if a victim wins $100,000, their lawyer could take up to $40,000—before deducting case costs!
Under this proposal, lawyers would only be allowed to take 20% after costs are covered.
That means victims keep more of what they deserve. It doesn’t cap the amount plaintiffs can win—only what lawyers can take.
Why This Matters
Nevadans who suffer injuries deserve to be made whole.
But in many cases, the biggest winners are the attorneys. High lawyer fees reduce the money available for victims to cover medical bills, lost wages, and other damages.
This proposal puts more money back into the hands of everyday Nevadans, not high-powered law firms that rake in millions from inflated legal fees.
Georgia Governor Brian Kemp is leading the way with similar reforms in his state.
He’s calling out greedy trial lawyers who take advantage of victims, pushing legislation to limit lawyer fees and cut down on frivolous lawsuits.
Nevada can—and should—follow suit.
How It Helps Reduce Lawsuit Abuse
Another benefit? This reform could help cut down on frivolous lawsuits.
Right now, some lawyers take on questionable cases, hoping for quick settlements. These lawsuits drive up costs for businesses and consumers.
Lower attorney fees mean fewer baseless lawsuits and quicker, fairer resolutions for real victims.
Companies and insurers might also be more willing to settle legitimate cases faster, avoiding long and costly courtroom battles.
Who Supports It?
Conservative leaders, consumer advocates, and business owners say this reform is a win for Nevada families.
- Supporters argue that trial lawyers should not be able to take such a large chunk of settlements meant to help victims recover.
- Some federal and class-action cases already have limits on contingency fees, usually around 20-25%. This proposal simply brings Nevada in line with these fairer standards.
- Lower legal fees mean lower costs for everyone, including businesses, insurance companies, and ultimately consumers.
What Critics Say
Trial lawyers are, of course, against this.
They claim that the 20% cap will make it harder for victims to find legal representation, especially for high-risk cases like medical malpractice or product liability lawsuits.
But let’s be honest—lawyers are still making plenty of money.
Even with a 20% cap, attorneys will still walk away with large sums, especially in big-dollar cases.
And if they truly believe in their cases, why wouldn’t they take them for a fair fee?
Legal Challenges & What’s Next
Unsurprisingly, trial lawyers have fought this proposal in court.
The Nevada Supreme Court recently blocked the initiative, claiming problems with the language. But the fight isn’t over.
Supporters are working to revise the wording and bring this initiative back. The goal is simple: Protect victims, not trial lawyers’ bank accounts.
Bottom Line
The Nevadans for Fair Recovery Act is about fairness and common sense.
It ensures that those who win settlements get to keep more of their money—not hand over a third or more to lawyers.
It brings Nevada in line with other legal fee limits, discourages frivolous lawsuits, and helps businesses and consumers alike.
If Georgia’s Governor Kemp is standing up to big trial lawyers, Nevada should too. It’s time to put victims first, not trial lawyers’ profits.
This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
