Jan 27 (Reuters) - Nevada's highest court on Monday
rejected efforts by ride-hailing giant Uber Technologies ( UBER )
to cap the contingency fees lawyers can earn in civil
lawsuits to 20% of the amount their clients' recover.
The Nevada Supreme Court unanimously ruled that a proposed
statewide ballot initiative from Uber ( UBER ) and Nevadans for Fair
Recovery contained language that was "misleading and confusing."
It was unclear, for instance, whether contingency fees for
lawyers working on medical malpractice cases or on behalf of the
state of Nevada would also be capped, the court said.
Opponents of Uber's ( UBER ) proposed initiative, including a group
of Uber ( UBER ) riders who allege they were sexually assaulted by their
drivers, praised the high court's ruling.
"We're thrilled that the Nevada Supreme Court has
unanimously rejected Uber's ( UBER ) cynical scheme to sidestep
accountability for the countless sexual assault cases and other
harms it has enabled under its watch," Deepak Gupta of Gupta
Wessler, who represented the initiative's opponents, said in a
statement.
"Today's verdict is not the end of our efforts," Nevadans
for Fair Recovery said in a statement. "We plan to pursue an
aggressive campaign to educate voters about how billboard
attorneys have rigged the system to put their interests over
Nevadans."
A spokesperson for Uber ( UBER ) did not immediately respond to a
request for comment. Uber ( UBER ) has denied wrongdoing in sexual
assault and harassment litigation and said it has taken steps to
safeguard passengers.
The ballot initiative would have amended Nevada law, and
would have gone into effect in 2027. Had the Nevada Supreme
Court signed off on the proposed language, it would have gone to
the state legislature for a vote.
Opponents sued to block the ballot initiative last year,
asserting that it was misleading because it does not inform
prospective petition signers of potential effects of the fee
cap, like making it harder for plaintiffs to find lawyers to
handle their cases. But a Nevada district rejected those
arguments in May, finding them "too speculative and
hypothetical."
Nevada's proposed fee cap would have been the most
restrictive in the country, opponents said. Oklahoma and
Michigan impose fee caps in all civil cases but the limits are
50% and 33%, respectively. Several other states cap contingency
fees in medical malpractice cases, but the lowest limit is New
York's 30% cap.
The case is Uber Sexual Assault Survivors for Legal
Accountability, v. Uber Technologies Inc ( UBER ), Nevada Supreme Court,
No. 88813
For Uber Sexual Assault Survivors for Legal Accountability
and Nevada Justice Association: Deepak Gupta of Gupta Wessler
For Uber Technologies ( UBER ) and Nevadans for Fair Recovery: Daniel
Bravo of Bravo Schrager