Auto Accident Victims & Attorney Fees
Initiative Constitutional Amendment
What This Does in Plain English
Right now, when someone is injured in a car accident and wins money in a lawsuit, their lawyer can take a large portion of that payout as fees — sometimes leaving the victim with far less than expected. This measure changes the rules so that injured victims must keep at least 75 cents of every dollar they win. Attorney fees would be capped, ensuring lawyers cannot take more than 25% of the recovery.
The Problem It's Solving
- Auto accident victims can receive large jury awards but end up with a fraction after attorney fees.
- There are currently no limits in California on how much an attorney can charge in contingency-fee cases.
- Injured people — often already dealing with medical bills and lost wages — can be left without enough to cover their actual losses.
What Changes
- 75% minimum: Victims must receive at least 75% of their total monetary recovery.
- Attorney fee cap: Lawyers cannot take more than 25% of the settlement or judgment.
- Constitutional protection: This would be written into the California Constitution, making it harder for future legislatures to reverse.
Who Is Behind It
Funded by A More Affordable California, a committee backed by Uber Technologies. Critics note that rideshare companies like Uber have a financial interest in limiting payouts from accidents involving their drivers.
Who It Affects
- Anyone injured in a car accident in California who pursues legal action
- Personal injury attorneys whose fees would be capped
- Insurance companies and rideshare platforms involved in accident litigation
Arguments For
- Victims deserve the bulk of their own compensation.
- Reduces incentive for attorneys to drag out cases to increase fees.
- Brings California in line with similar caps in other states.
Arguments Against
- Lower fees may discourage attorneys from taking complex or risky cases on behalf of injured people.
- Funded by a corporation with a direct financial interest in reducing accident payouts.
- Could limit access to legal representation for people with serious injuries.
Fiscal Impact
No direct fiscal impact on state or local government budgets. The change affects private legal agreements between clients and attorneys.