Uber’s ballot initiative seeks to limit contingency fee percentages that California personal injury attorneys could charge in any car accident case, even those not involving Uber. While the so-called Uber Protecting Automobile Accident Victims from Attorney Self-Dealing Act is being promoted as a way to help car accident victims receive a larger percentage of any recovery in their case, it will likely cause many negative consequences to vulnerable victims, including not being able to access justice or healthcare following an accident. The company has already spent tens of millions of dollars promoting the initiative, which California voters will vote on in November.
Limiting Contingency Fee Percentages in California
The proposed law would amend the California Constitution to limit the amount that car accident victims pay their attorneys. Most car accident attorneys work on a contingency basis. This means that they do not require upfront payment for their legal services. Instead, they are paid a percentage of any recovery they make in the case. If they are not successful, they do not charge a fee.
Contingency fee arrangements in California are generally set at 30 to 40% of the recovery. The ballot initiative seeks to limit this percentage to 25%. Taking it even further, this 25% must also include the victim’s medical expenses and litigation costs.
While it might seem that this initiative could save you money if you are a car accident victim, the unrealistic fee schedule could limit your ability to hire a lawyer. If the law is passed, a lawyer might not be able to receive much compensation for the work they do, especially when medical expenses and litigation costs chip away at their fee. Without proper compensation, lawyers might not be able to take these cases, even when negligence is clear, because they may not be paid for their services or may not be paid a reasonable rate. This could make it extremely difficult to find a lawyer willing to take your case. Without legal representation, giant corporations like Uber might get out of paying what is fair or being held liable.
Limiting Medical Expenses
An additional problem with the proposed initiative is that it includes medical expenses in the figure. It states that the car accident victim must receive at least 75% of the total amount recovered. This could cause some medical providers to deny care because they might be afraid that they will not be paid for most of the care they provide to patients.
Criminalizing Representation
In a further effort to limit access to quality legal representation, Uber’s ballot initiative will make it a misdemeanor for an attorney to charge a fee in a car accident case that exceeds the proposed limit. This will likely have a chilling effect on representation, as lawyers will not want to risk facing criminal charges for representing car accident victims, potentially leaving them without legal representation and more vulnerable to the aggressive tactics of Uber’s legal team and insurance companies.
Contact Us Today for a Free Consultation
At the Miller & Steele Law Firm, we believe in standing up for accident victims, not limiting their access to justice. We encourage you to vote down Uber’s ballot initiative, which is a measure cloaked in deception that would only help the company limit its financial exposure when its drivers are negligent and prevent car accident victims from recovering the compensation they deserve. Contact us today at (760) 439-2210 for a free case review if you were injured in a car accident.