Update: Uber-Backed Ballot Petition to Cap Attorney Fees at 20% Blocked by Nevada Supreme Court
On Monday, January 27, 2025, the Nevada Supreme court unanimously rejected Uber’s attempt to cap attorney fees at 20%.[1] The ballot petition, spearheaded by Uber and Nevadans for Fair Recovery, was anticipated to go before voters in 2026. If passed, the legislation would have become effective in 2027 and would have imposed the strictest contingency fee cap in the nation.
The rideshare giant says fee caps free up funds for plaintiffs, but opponents say they prevent lawsuits. Ultimately, the court found the initiative was confusing and “legally insufficient.” [2]
“We conclude that the description of effect is misleading and confusing,” Nevada Supreme Court Chief Justice Douglas Herndon ruled in the opinion.[2] Several panelists probed Uber’s attorney about whether the initiative misled voters because it was ambiguous about whether “recovery” included or excluded medical costs. In Monday’s ruling, the Nevada Supreme Court focused on those concerns.
“As currently drafted, the description leaves several material questions unanswered, such as whether the initiative applies to civil medical malpractice cases and those where private attorneys represent the state of Nevada; and if so, whether the cap proposed by the initiative replaces the existing higher caps,” stated the ruling.[2] The statement also suggested the initiative left potential signatories with more questions than answers about its potential effects.
The court also ruled that the petition was not straightforward, implying that the 20% would be applied in the same way as the state’s cap on medical malpractice contingency fees. “Despite having over one hundred more words to explain the calculations for an attorney’s recovery of fees under the proposed cap and to clarify the description’s reference to other caps, Uber failed to do so,” the ruling notes.[2]
The Nevada ballot initiative is the first Uber-backed measure over contingency fees. The initial lawsuit was filed by the Nevada Justice Association and a group representing Uber sexual assault survivors. [3] On behalf of the plaintiffs in the lawsuit, Deepak Gupta celebrated the decision: “This victory ensures that Nevadans who are harmed, injured, or cheated will retain their fundamental right to seek justice through the courts.” [1]
What Happens Next?
There is little doubt that Uber will continue its fight to cap attorney fees in Nevada. There is no doubt that trial lawyers will continue to fiercely challenge Uber’s efforts to protect victims’ rights in Nevada.
Several attorneys from states outside Nevada have reached out to USClaims to express thanks for our initial article, so we are excited to share the Nevada Supreme Court’s ruling immediately. Working together, we can make a difference in the protection of fundamental victim rights.
Disclaimer: The opinions expressed in this article are our own and should not be considered legal advice.
Sources:
- Mueller T. Uber-backed ballot petition capping attorney fees blocked by Nevada Supreme Court. The Nevada Independent. January 27, 2025. Available at: https://thenevadaindependent.com/article/uber-backed-ballot-petition-capping-attorney-fees-blocked-by-nevada-supreme-court.
- Uber Sexual Assault Survivors for Legal Accountability and Nevada Justice Association v. Uber Technologies, Inc. Nevada Supreme Court (2025).
- Silver-Greenburg J. Uber, Facing Sexual-Assault Litigation, Pushes Plan That May Limit Lawsuits. The New York Times. August 12, 2024. Available at: https://www.nytimes.com/2024/08/12/business/uber-nevada-referendum.html.
