While the road of life offers no clear detour around high auto insurance rates, a Nevada initiative aims to put residents behind the wheel of reform by targeting exorbitant attorney fees in a November 2026 ballot issue.

Though still in its infancy stage—according to the Secretary of State, it needs signatures from 10% of the voters to qualify for General Election action—already the proposed 20% cap (or limit) on lawyer fees in civil cases is stirring a legal challenge. 

As Reuters reported on April 23, ridesharing company Uber is defending the ballot proposal against a 43-page complaint by Uber Sexual Assault Survivors for Legal Accountability that calls the cap “draconian” and Uber’s way of avoiding lawsuits.

In a response filed April 19 in First Judicial District Court, Carson City, the defendant maintains the ballot meets all requirements, including presenting a single topic not convoluted by political and other views. The document— filed by Bradley Schrager and Daniel Bravo— seeks the complaint's dismissal.

Instead of freeing Uber from litigation as alleged, a spokesman for Nevadans for Fair Recovery told Business Daily, “The measure protects plaintiffs by ensuring they receive more money when they win in court or settle a case. Importantly, the measure does not limit the ability of plaintiffs to sue or limit the amount defendants must pay when they are found liable.”

Although Uber is leading sponsor of the ballot issue, many other groups have cried out for justice reform for a host of reasons including high insurance costs. The ballot initiative, filed with the Secretary of State on March 18, has support from the Retail Association of Nevada and Nevada Trucking Association as it takes on a widely condemned legal system.

Not only businesses, but Uber drivers are joining the push for reform as they seek fair compensation for those injured. “If a driver is hurt on the job, they should get the help they need and not be forced to hand over huge chunks of what they win to lawyers,” Nevada Uber driver Emilee Rodgers said in a March 18 statement from Nevadans for Fair Recovery.  “At the end of the day the current system works better for lawyers than for drivers. We need reforms that protect the people actually doing the work.”

According to Retail Association of Nevada President Mary Lau in the statement, “Unfortunately, billboard attorneys have co-opted the court system at the expense of victims and businesses.” As reported in Legal Newsline on April 25, the statement also included Paul Enos, CEO of the Nevada Trucking Association, seeking to even the playing field dominated by “billboard attorneys.”

The call for legal reform comes at a time when auto insurance rates are spiraling out of reach of some American households. Based on Bankrate statistics, Legal Newsline reported Nevada drivers pay an average of $2,779 annually for full auto coverage—$765 more than the national average.

This drain on wallets during allegations of legal system abuse may leave some wondering how lawyers’ contingency fees play into auto costs. According to a blog from Las Vegas-based Pacific West Injury Law, contingency fee arrangements let lawyers get paid a percentage of their client’s award if the case is won or settled. The Nevada Rules of Professional Conduct bans unreasonable fees, the blog said, explaining contingency fees can vary from 33.3 % to 50% in the state depending on each case’s risk factors and complexity. In some ways, the blog states, a contingency fee is a good thing—without this setup many could not afford to sue at all.

But even a good thing can spiral out of control, and that’s the type of legal climate many organizations are describing as they push for a more equitable system.  

In a 2023 report, the National Association of Mutual Insurance Companies cited the need to combat social inflation, a catch phrase for the rising costs of insurance claims, with a level playing field and reasonable reform.  “Real data support the notion of ever-increasing tort costs for all consumers—cast against a backdrop of growing third-party involvement—negatively impacting the civil justice system,” the report concludes.

In the report “Tort Costs in America,” the U.S. Chamber of Commerce Institute for Legal Reform (ILR) estimated the cost of the tort system at $443 billion in 2020—or 2.1% of the national gross domestic product and $3,621 for each household.

 “Consumers feel the pain of an expensive and inefficient tort system through higher prices on goods, services, and insurance, including car insurance,” the Jan. 2023 report said. “By increasing claims costs, social inflation threatens the affordability of insurance coverage,” it concludes.

In testimony before the House Financial Services Committee in October, the American Property Casualty Insurance Association (APCIA) described the insurance industry as “solvent” but under pressure from “rapidly escalating loss costs.”  Tort reform legislation is their solution to issues like "Jackpot Justice," third-party lawsuit financing and billboard trolling for clients all identified as factors in legal system exploitation.

Will insurance costs keep some cars off the road? According to the report, “Legal system abuse is further exacerbating insurance affordability pressures." 

Voters may have a chance to cut attorney contingency fees down to size if the ballot initiative survives scrutiny and heads for action in 2026. But the Legislature also can beat them to it and enact the measure prior to the citizens' vote if it sees fit, according to the Secretary of State website.